2 - 4 minute read
Cryptocurrency traders on Twitter have found a new obsession in the form of tokens branded after the internet meme Pepe the Frog. The enormous success of dogecoin (DOGE) and shiba inu (SHIB) in the previous bull market saw a rise in meme-based tokens, with names like McDonald’s Grimacecoins and article-based tokens appearing in the market. Despite the lack of a concrete background of legitimacy, meme coins continue to thrive within the crypto trading landscape.
Most recently, the Pepe token (PEPE) has stolen the crypto limelight with Token’s price chart rising up only thus far. As of Tuesday morning, the token reached a market capitalization of as high as $33 million, following a 21,000% rise in the past three days. The tokens have a circulating supply of 420 trillion, with the trading pool on Uniswap locking up over $1.3 million in liquidity. As such, the tokens have no actual connection to the meme’s original creator, Matt Furie.
According to James Wo, founder at crypto fund DFG, memecoin trading is a “risky way to try to seek excessive return, but when it pans out, the upside can be very huge. When bitcoin and ether have very low volatility, it’s only natural that traders will look for opportunities elsewhere.”
Despite the lack of background legitimacy, the market for these ‘s**tcoins’ in niche circles remains ongoing.
The Bottom Line
While the unpredictability of the market and lack of background legitimacy for meme coins may raise concerns, small-time traders seek opportunities where they can. Be mindful of the potential risks and keep an eye out for up-swing trends.
