PEPE, a token inspired by the “pepe the frog” meme, has seen a meteoric rise in value, with its market cap soaring to $502 million after a 2,100% surge since its issuance last month. According to Ethereum block explorer etherscan, PEPE has approximately 75,000 holders, with numerous wallets holding over $5 million worth of tokens, not including centralized exchanges. Over the weekend alone, the PEPE token surged by 350%, and derivatives exchange BitMEX recently announced that it would list perpetual swaps for the token, allowing traders to trade the volatile asset with up to 50x leverage.
Despite the increasing hype surrounding the meme token, some early investors have been cashing out. One trader sold $2 million worth of the token using Metamask swaps and ended up losing $350,000 due to minimal liquidity, resulting in a 25% slippage. Another trader temporarily tanked the price of PEPE by almost 50% as they cashed out $678,000 worth of the token.
PEPE’s price action is similar to that of dogecoin over the years, with intense volatility resulting from a lack of liquidity or sustainable demand. The price of dogecoin has dramatically fallen on numerous occasions when hype subsided. In this case, PEPE may face sell pressure when derivative markets go live as traders attempt to capitalize on a trend that has historically ebbed and flowed.
It’s worth noting that the PEPE token isn’t the first cryptocurrency to be inspired by a meme. Dogecoin, which was created in 2013 as a joke, has also seen a surge in popularity in recent years. Despite its initial lack of legitimacy, the cryptocurrency has gained a cult following and is now widely accepted as a form of payment.
There are concerns, however, that the hype around meme-based tokens like PEPE and dogecoin may be short-lived. Some analysts have warned that these tokens lack the fundamentals needed to sustain their value over time. Others have pointed out that the lack of regulation in the cryptocurrency market makes it difficult to predict how these tokens will perform in the long run.
Despite these concerns, it’s clear that the popularity of meme-based tokens isn’t going away anytime soon. As more and more investors look for new and exciting opportunities in the cryptocurrency market, it’s likely that we’ll see more tokens inspired by internet memes and other cultural phenomena. Whether these tokens will prove to be a good investment remains to be seen, but one thing is for sure: they’re certainly making waves in the world of cryptocurrency.
In conclusion, the rise of PEPE is just one example of how the cryptocurrency market continues to evolve and innovate. While the future of meme-based tokens remains uncertain, it’s clear that they’re here to stay – at least for now. As always, investors should approach these assets with caution and do their due diligence before investing any money.