Discover the sudden rise of Pepecoin, the new meme coin generating buzz in the world of crypto. Learn about “pumpmentals” in action and the potential risks that come with investing with rising meme coins.
Dogecoin, FLOKI, Shiba Inu, Pitbull – You’ve definitely heard of these canine-inspired meme coins. Amongst all of these, Dogecoin has created a huge buzz or stir in the world of crypto.
For many people, it was what put memecoins on the map. With the help of Elon Musk, of course. However, a new meme coin has just emerged into the limelight in good ol’ meme fashion.
Pepecoin.
Launched just last Sunday, Pepecoin has already seen a sudden rise in value, with a market cap of over $165 million by Thursday. In terms of returns, that’s way more than anyone could have expected.
What is it about?
For those unfamiliar with the character, Pepe is the unofficial mascot of crypto degens.
First created by cartoonist Matt Fuie, this peculiar-faced humanoid frog has a surprisingly political history. It was first popularised by alt-right netizens to mean something to troll people on the internet. The meme was also connected with Donald Trump’s campaign back in 2016.
As with anything controversial, the meme is highly recognizable for anyone that has an internet connection. This massive popularity and recognition for the character has likely enabled the token to absolutely take off.
The Truth
So, why is this hype occuring?
Memecoins and micro-caps are, truthfully, an insider’s game. Memecoins are primarily popular due to the get-rich-quick promise of a select “survivorship bias” individuals.
Investigations towards meme coins always lead to the same trail – a few people launching a coin and partnering with “influencers” to pump the coin. And once investors have enough of the coin, they’ll dump it. Additionally, a suspicious group of wallets holds 10% of the total supply.
A small group of elite wallets hold a significant portion of the token’s supply. Once they decide to dump, everyone else will be left with practically useless tokens.
Crypto markets have always been irrational and that fact will likely stand the test of time. We often see people will buy a token if they see others making money. However, by the time they hear about it and invest, it’s probably too late. Speculators and reflexivity are the main drivers behind this market.
Final Thoughts
All these warnings aside, DOGE has so far seen great success throughout its lifetime. It is currently the ninth-largest cryptocurrency in the market, proving itself to be the most solid meme coin out there.
Pepecoin, although relatively new, could perhaps prove itself to be a strong competitor to dominant meme coins such as DOGE, FLOKI, and more.
Edmond is a passionate writer for Video games, GameFi and Web3. He has worked for top GameFi companies and video game/crypto news websites.
