Anything is possible in the cryptocurrency world. The industry made many people millionaires, but it also bankrupted many people at once. Altcoin projects with very low market caps can rise to extraordinary rates and make investors millionaires overnight. During the previous bull market, we saw that these coins were not that useful. Now analysts are saying that the popular meme coin of recent days could be pump-dump.
PEPE replaces DOGE?
cryptocoin.comAs you follow, meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) have increased by thousands of percent. From time to time, new meme coins continue to attract attention. A new token based on arguably the internet’s biggest meme has managed to gain 21,000% in three days. The token is based on Pepe the Frog, which has become a cult internet meme in recent years. Pepe, a green frog with a humanoid body, came out of the 2005 comics Boy’s Club. It has already become a popular element of internet culture.
The PEPE token was launched on Sunday. It managed to reach a market capitalization of $33 million by Tuesday morning. The token itself temporarily rose 21,000%. On the decentralized exchange (DEX), Uniswap’s volume is up to $30 million.
Data from Etherscan shows that the meme coin had a total of 10,000 individual holders as of Tuesday. Therefore, the token was quickly bought by large groups of investors, all of whom were expecting profits. The trading pool on Uniswap for PEPE tokens is locking in more than $1.3 million in liquidity, all provided by vendors. Meanwhile, PEPE has a supply of 420 trillion, referring to “4/20”, a “holiday” in cannabis culture.
Red flags for altcoin
Crypto analyst Zerelik Maciej says some red flags are appearing for PEPE. However, potential investors need to be careful and be aware of the risks surrounding this token. First and foremost, the bulk of the token supply is concentrated in just six wallets, each holding over $1 million in PEPE. This level of centralization is alarming as the holders of these wallets have the power to significantly influence the token price and could potentially drive the token price to zero due to the lack of available liquidity.
Moreover, these main holders of PEPE received the tokens almost simultaneously just four days ago. This unusual activity raises questions about their possible coordination and intentions behind collecting such large quantities of PEPE. The story of a trader who allegedly made millions at $300 went viral on social media, further fueling interest in the PEPE token. However, this narrative could be carefully planned marketing to attract unsuspecting users to invest.
The Wolf: PEPE is nothing but a ‘pump and dump’
Cryptocurrency trader WolfOfPoloniex, aka The Wolf, recently commented on Pepe Coin. He stated that Pepe Coin is very stupid and he has seen it many times, which does not surprise him.
He also stated that Pepe Coin is nothing more than a pump & dump and enough time has passed for fresh blood. The trader also commented that all of these are early signs of an upcoming new bull market cycle.
Meme altcoins as part of the crypto industry
Thanks to the success of meme coins, especially Dogecoin and Shiba Inu, many investors were drawn to the world of digital assets during the previous bull market. As a result, meme coins have become a part of the emerging industry. However, most of these cryptocurrencies cannot continue to grow for a long time and record large decreases in a short time. However, projects like Dogecoin and Shiba Inu currently rank 8th and 14th respectively in the CoinMarketCap rankings.
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