Simon’s Cat (CAT), an IP-backed meme token, experienced a significant price surge on Monday, climbing 50% after it secured a highly sought-after spot listing on Binance. This achievement sets CAT apart as the first-ever cat-themed token to be listed on the exchange, even as other meme tokens face increased scrutiny for potential copyright violations.

CAT’s price jumped from $0.000039 to a peak of $0.000067 in early Asian trading hours on Tuesday before slightly retracing its gains. Trading volume saw a dramatic rise, skyrocketing from $55 million to over $500 million. The token’s open interest in futures contracts also surged, almost doubling to $60 million, signaling increased expectations of volatility with a bullish outlook.

Binance announced that it would reward users with airdrops of CAT tokens if they staked specific amounts of BNB tokens in their Earn products last week. Additionally, the exchange revealed plans to list 1000CAT tokens, where each 1000CAT token equals one thousand CAT tokens, at 09:00 UTC on Tuesday.

CAT is the official token of Simon’s Cat, a popular animated series following the misadventures of a hungry house cat. With a fanbase of over 20 million across YouTube, Facebook, and Instagram, the show’s strong presence has helped propel the token’s success.

In comparison to other cat-themed meme tokens like Popcat, MOG, and MEW, CAT is often seen as undervalued due to its official IP backing and its recent spot listing on Binance. As of Tuesday, CAT was the fourth-largest cat-themed meme token by market cap, trailing MOG, which boasts a $1.1 billion valuation.

Well-known trader @theunipcs, who previously turned a $16,000 investment into $18 million through a BONK trade, is one of CAT’s most vocal supporters. He believes that CAT is positioned to overtake Popcat as the top cat-themed meme coin, citing CAT’s strong mainstream recognition, superior intellectual property, and minimal competition in the space.

Is IP-Backed Meme Coin the Future of the Market?

CAT’s success highlights the growing appeal of IP-backed meme tokens, as legal challenges against non-IP coins increase. Intellectual property (IP), which can include trademarks, copyrights, and licensed characters, provides clearer legal protections. Tokens backed by IP are less likely to face the legal challenges that often plague non-IP-backed coins, such as cease-and-desist orders or lawsuits for unauthorized use of trademarks.

For non-IP-backed tokens like Chillguy (CHILLGUY) and Pnut (PNUT), legal issues are a growing concern. In fact, on Monday, Mark Longo, the creator of Peanut the Squirrel, sent a cease-and-desist letter to Binance, claiming trademark infringement for listing the PNUT token without his permission. Longo demanded up to $150,000 per infringement, which caused PNUT’s price to drop by 5% over the past 24 hours.

By contrast, CAT benefits from its official licensing with Simon’s Cat, a well-established brand with a proven track record and significant revenue. This offers a level of legal security and brand recognition that non-IP-backed meme tokens simply cannot provide.

For investors like @theunipcs, CAT’s IP backing offers an important layer of protection, making it a safer investment. As he notes, major exchanges and institutional players will avoid listing meme tokens with IP issues due to potential legal liabilities. On the other hand, CAT’s official licensing and promotion from Simon’s Cat channels provide it with a unique edge in the market, making it more appealing to investors and traders alike.

In a market where meme tokens often experience volatility and legal risks, CAT’s solid intellectual property backing might prove to be the key to its long-term success, combining strong community support, brand recognition, and legal security.