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Frog to Fortune: The Rise of $PEPE
The legendary frog-themed memecoin Pepe (PEPE) has reached a market capitalization of over $1 billion just three weeks after its launch on April 14th, 2023, thanks in part to its recent listing on Binance.
Since its inception, the price of PEPE has skyrocketed by almost 15,000%. In the last 24 hours alone, the price surged by over 85%. Interestingly, the creators of PEPE have described the token as having no intrinsic value or expectation of financial return, and it is intended solely for entertainment purposes. As a result, the investment in this memecoin is highly speculative, and its value is prone to extreme volatility.
Rise In Pepe-larity
Pepe’s rise in popularity mirrors the trajectory of other popular memecoins, such as Dogecoin (DOGE) and Shiba Inu (SHIB). In 2021, DOGE surged by over 23,000%, mainly due to the vocal support for the token by Elon Musk on Twitter. SHIB saw a similar surge in popularity, with a rise of over 1,250% during the 2021 crypto bull market, also fueled by its association with Dogecoin.
However, investors should approach memecoins with caution as some altcoins lack tangible fundamentals and can be very speculative
A closer look at on-chain activity claims from Pepe insiders suggests that there may be some concerning trades. Blockchain analytics service Lookonchain has reported that five addresses allegedly linked to the Pepe team made a $1.23 million profit by purchasing 8.87 trillion PEPE at a low price and selling over 90% of their holdings on Uniswap for a gain in a liquid market.
While some of the top PEPE holders are centralized exchanges, non-exchange PEPE whales have reduced their positions recently, hinting at profit-taking that coincided with a price correction on May 3rd, 2023.
The rise of PEPE and other meme
coins is a reflection of the growing interest and enthusiasm for cryptocurrency. However, investors must exercise caution and do their due diligence before investing in these highly speculative assets. The market for memecoins is notoriously volatile and can experience major swings in value, so investors make sure you proceed with caution so your portfolio doesnt become the meme.