Pepe (PEPE), a frog-themed memecoin, has hit a market cap of $1 billion after surging over 85% in the last 24 hours since its launch on April 14, 2023.
Despite having no intrinsic value or expectation of financial return, PEPE has followed a similar trajectory to other memecoins such as Dogecoin (DOGE) and Shiba Inu (SHIB).
However, investment in memecoins is high risk due to the lack of underlying fundamentals, extreme volatility, and major swings in value.
Concerns about Pepe’s on-chain activity have also emerged, with five addresses allegedly linked to the Pepe team making 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. The thin liquid market has raised suspicions about insider trading.
Despite its disclaimer as a “completely useless” token for entertainment purposes only, the popularity of memecoins shows no signs of slowing down.
The listing of PEPE on Binance, a major cryptocurrency exchange, is likely to have contributed to its recent surge.
However, investors should be wary of investing in high-risk assets such as memecoins and should do their due diligence before making any investments.
