Mubarak (MUBARAK), a meme coin recently launched on the BNB Chain, has defied broader market trends by surging nearly 300% in daily trading. The token currently trades at approximately $0.13, with its market capitalization approaching $120 million.
The dramatic price movement coincides with reports that Binance founder Changpeng Zhao, commonly known as CZ, has entered the ecosystem. Blockchain analytics firm Lookonchain reported that Zhao spent 1 BNB (approximately $600) to acquire MUBARAK tokens and an identical amount to purchase TST, another meme coin created by the BNB Chain team.
Zhao's apparent interest in these tokens represents a significant shift from his previous public position. In February, when Binance listed TST, Zhao explicitly stated he had "nothing to do with the decision" and claimed he had "never bought a single meme coin so far."
As one of cryptocurrency's most influential figures, Zhao's interaction with these assets could generate substantial interest among other market participants. Industry analysts note that such endorsements, even implied ones, frequently trigger what traders call a "FOMO effect" — fear of missing out — potentially driving prices higher in the short term.
The price movement may also be partially attributed to support from Binance Alpha, an initiative designed to bolster innovative projects including meme coins. The program provides liquidity support, increased visibility, and potential exchange listings for participating tokens.
Market observers caution that such rapid price increases often prove temporary and may be followed by significant corrections. Inexperienced traders could face substantial losses if entering positions after such dramatic upward movements.
Despite these risks, early investors in meme coins occasionally realize extraordinary returns. Lookonchain documented one trader who invested less than $5,000 to purchase 12.35 million MUBARAK tokens shortly after launch. This investor subsequently sold 2.35 million tokens for approximately 125 BNB (roughly $74,000) while retaining 10 million MUBARAK tokens.
Following the recent price surge, the trader's remaining position is now valued at approximately $1.3 million, representing a return exceeding 26,000% on the initial investment.
The cryptocurrency market has seen numerous similar patterns with newly launched tokens experiencing dramatic but often unsustainable price movements. Regulatory authorities worldwide have increasingly warned consumers about the speculative nature of such investments.