There’s a new memecoin in town, and it goes by the name of PEPE. It is named after the popular internet meme Pepe the Frog and is rapidly gaining in value.
The team behind PEPE has labeled it as “the most memeable memecoin in existence” and declared that “the dog days are over”.
Since its launch on April 17th, PEPE has seen a significant increase in its market capitalization, with an impressive rise in value over the course of just a few days. Investors who got in early have seen immense returns, with some becoming millionaires in record time. However, cashing out these impressive profits may prove difficult due to liquidity concerns.
Investors are flocking to PEPE in the hopes of repeating the success of other meme coins such as Dogecoin (DOGE) and Shiba Inu (SHIB). With its impressive returns, one investor turned a $27 investment into $1 million. Nonetheless, exiting the position will not be an easy feat, especially given the concerns surrounding liquidity.
A lack of buyers and adequate liquidity, which is typically concentrated in automated market maker pools, could make it difficult to liquidate the tokens. Market analysts have suggested that exiting the position could have a negative impact on the price of the cryptocurrency.
The liquidity of PEPE is expected to improve as it becomes more widely listed on crypto exchanges.
Despite being a relatively recent launch, various individuals within the crypto community have raised concerns about centralization. Six wallets have been identified that hold over $1 million in PEPE, giving these holders significant power over the token’s price.
There are also concerns that the stories of investors becoming millionaires overnight may be a trap to lure unsuspecting investors into the ecosystem.