Meme coins have once again taken center stage, with the emergence of a new contender – the Pepe coin. Within a matter of weeks, its worth has surged, generating a buzz amongst the masses. If you’re curious about the commotion and its viability as an investment opportunity, then you’re in luck! Let’s delve into the realm of Pepe and determine if it truly deserves the hype.
What is Pepe Coin?
Pepe coin entered the market on April 16, 2023, without any prior sale and with minimal fanfare. The project’s website reveals that the token has no designated team, and its creators have opted to remain anonymous. This approach might seem unconventional to some, but it is not unheard of in the cryptocurrency world, where numerous projects are initiated by anonymous entities.
The Pepe token takes inspiration from the viral “Pepe the Frog” meme, which gained widespread popularity in the 2010s. Its design incorporates the distinctive green frog and is specifically crafted to cater to the preferences of meme aficionados. The token has been able to get support from meme coin fans, resulting in a meteoric rise in its Pepe’s price.
Pepe as a Meme Coin
Pepe coin has joined the bandwagon of meme coins, riding the wave of their increasing popularity. The token’s symbol is influenced by the “Pepe the Frog” meme and the artist, Matt Furie, who created it. It is noteworthy that the token has a circulating supply of 420,690,000,000,000 (420 trillion) coins.
Of this amount, 93.1% has already been allocated to the liquidity pool, with LP tokens burned and contracts renounced. Consequently, only 6.9% of the supply is stored in a multi-sig wallet, reserved for CEX listings, bridges, and liquidity pools. This strategic token allocation aims to ensure the token’s effective use while fostering its long-term stability and expansion.
Pepe Coin Soars to $500M Market Cap
With a surge of 2,100% since its issuance last month, Pepe’s market cap has skyrocketed to $502 million. According to the Ethereum block explorer Etherscan, around 75,000 holders own Pepe, with numerous wallets – except centralized exchanges – containing over $5 million worth of the tokens. Over the weekend, the Pepe token surged by 350% with some traders getting massive returns on their trades.
BitMEX, a derivatives exchange, announced on Tuesday that it would list perpetual swaps for the token, enabling traders to engage with the volatile asset using up to 50 times leverage. While enthusiasm for the meme token intensifies, some initial investors have been liquidating their holdings. One trader, using MetaMask swaps, sold $2 million worth of the token, but suffered a $350,000 loss due to minimal liquidity, resulting in a 25% slippage. Another trader caused a temporary 50% drop in the price of Pepe as they cashed out $678,000 worth of the token.
Future of Pepe Coin
The outlook for Pepe’s future remains uncertain, despite its recent launch. Some experts, such as James Wo, founder of the crypto fund DFG, contend that “[memecoins] are significant parts of the crypto trading landscape, whether we like it or not,” implying that meme coins similar to Pepe will likely continue to emerge.
However, Pepe may suffer the same fate as several other short-lived meme coins, including Grimacecoin, Pump Coin, and numerous others, disappearing from the public’s view quickly. In this scenario, investors, including the person who possesses nearly 6 trillion Pepe, will need to determine if they can gain profits from the token before the cryptocurrency community’s attention shifts elsewhere.
Final Thoughts
Pepe coin has emerged as a leading meme coin, drawing a significant number of crypto traders. Nevertheless, it is essential to recognize that investing in meme coins can be as hazardous as it is profitable, with gains turning into losses in an instant. Pepe’s price movement resembles Dogecoin’s volatility over the years.
Both coins have experienced significant fluctuations due to a lack of liquidity or sustainable demand. Dogecoin’s price has dropped significantly multiple times when the hype has subsided. Similarly, Pepe may face selling pressure when derivative markets go live, as traders try to take advantage of a trend that has historically fluctuated.
Therefore, it is critical to conduct thorough research before investing and take the time to assess the potential risks and rewards of this type of investment. Keep in mind that while meme coins can yield substantial returns, they are also incredibly unstable and unpredictable, making careful deliberation necessary.
Credit: Source link
