Pepe (PEPE), a new memecoin that launched on April 14, 2023, has seen an incredible 85% surge in the past 24 hours, propelling its market cap to over $1 billion.
However, the irony of the situation is that Pepe is a coin that has no intrinsic value or underlying purpose. In fact, the official website for the cryptocurrency clearly states that it is a completely useless token that is purely for entertainment purposes.
Despite this disclaimer, Pepe is following a similar trajectory to other popular memecoins such as Dogecoin (DOGE) and Shiba Inu (SHIB), both of which saw massive surges in value during the 2021 crypto bull market.
Investment in memecoins is high risk due to their lack of underlying fundamentals, and they are notorious for extreme volatility and major swings in value.
In the case of Pepe, there are some concerning trades happening behind the scenes. According to blockchain analytics service Lookonchain, five addresses allegedly linked to the Pepe team made a $1.23 million profit in a thin liquid market. They purchased 8.87 trillion PEPE at a low price and sold over 90% of their holdings on Uniswap for a gain.
While some investors may be drawn to the potential profits that can be made from memecoins, it’s important to remember that they are not a reliable investment and should be treated as high-risk assets.
As always, it’s essential to conduct thorough research and consult with financial professionals before making any investment decisions.