Move over Shiba-Inu fashioned tokens. There’s a new memecoin in town – PEPE – and this one’s after the internet meme Pepe the Frog.
The team behind PEPE declared that “the dog days are over,” while branding PEPE as “the most memeable memecoin in existence.”
The token was launched on April 17th and has been rallying ever since. In less than a week, PEPE ascended to a market capitalization of $137 million and gained a tremendous amount during the period. Following the explosive price rise, this token, with a green frog and a humanoid body, has turned early investors into millionaires. However, realizing those profits won’t be so easy.
Owing to the meme culture, investors are flocking to the digital asset hoping to repeat the success of other cryptos, such as Dogecoin (DOGE) and Shiba Inu (SHIB). Pepe, too, has managed to deliver unbelievable returns to investors. One investor turned their $27 investment in PEPE into a whopping $1 million, but it’s not easy to cash out completely, especially due to the liquidation concerns.
In addition to the lack of buyers, it is also important to consider the existence of sufficient liquidity, which is typically concentrated in automated market maker pools.
A market analyst, Grzegorz Drozdz, explained that it would take 46,200 years to liquidate the investor’s PEPE tokens, assuming a non-declining demand. An attempt to exit the position could have a drastically negative impact on the price of the crypto-asset. This would mean that PEPE’s price could plunge below the purchase level.
However, the token’s liquidity is expected to improve with more listings by the crypto exchanges.
Despite being just recently launched, many in the crypto community have pointed out centralization concerns. Six wallets were observed to be holding over $1 million in PEPE.
Such a level of centralization could spell trouble since it gives those holders massive power over the token’s price. Stories of investors turning into millions were further speculated to be a honeypot to lure unsuspecting investors into the nascent ecosystem.
The post How Someone Turned $27 into $1 Million in Days With PEPE, But There’s a Catch appeared first on CryptoPotato.
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