Binance, the world’s largest crypto exchange by volume, has recently added two meme coins to its innovation zone, namely Pepecoin (PEPE) and Floki Inu (FLOKI). While FLOKI has seen a 57% increase in its price, PEPE has surged by 77%, bringing its market capitalization above the $1 billion mark. Despite these gains, some skeptics are still concerned about an impending collapse, citing the high number of whales who purchased PEPE shortly after its release. Let’s take a look at the PEPE coin price in more detail.
What is PEPE Coin?
Pepe Coin is a new player in the cryptocurrency market that aims to compete with established meme coins like Dogecoin. Unlike many other new coins, Pepe Coin was introduced quietly, without any pre-sale or associated taxes or fees. The coin’s creators have also not burned any liquidity pools or renounced their contracts.
The name and concept of the cryptocurrency are inspired by Pepe, a green humanoid cartoon frog that first appeared in a 2005 comic. The Pepe meme gained immense popularity in the 2010s and continues to be relevant even today. Pepe Coin’s mascot is a tribute to the original Pepe meme, which has now found its place in the world of cryptocurrencies. The project was announced on Twitter on April 4th, and trading of the coin began on April 17th, 2023.
Pepecoin’s Market Capitalization Approaches $1.5 Billion Mark
#Binance will list @pepecoineth $PEPE and @RealFlokiInu $FLOKI in the innovation zone.
➡️ https://t.co/yxcINj0whc pic.twitter.com/o4UTvWZkHj
— Binance (@binance) May 5, 2023
Pepecoin (PEPE) is a nascent meme coin that has gained tremendous momentum in the past few weeks, surging to an almost $1.5 billion market capitalization just weeks after its launch. The coin has seen a 500% increase in value over the past two weeks, according to CoinGecko data. However, these gains have come with some drawbacks for short-sellers.
Shorts Losing Big on PEPE Coin Price Futures Trading
PEPE Coin Price: Image Source: Coinglass
Short-sellers betting against PEPE’s price have been losing big in the past 24 hours, with shorts against PEPE losing at least $11 million on several exchanges. Traders lost $5.5 million on OKX alone, making it the exchange with the highest losses. In addition, Huobi saw traders losing $2.2 million, Bybit experienced losses of $3.6 million, while BitMEX recorded losses of a few hundred thousand dollars. Despite these losses, PEPE is still trading at far less than a penny.
PEPE Coin Price: Warnings for Prospective Traders
Binance has provided a word of warning for prospective traders, cautioning that “as of the time of writing, PEPE has no token utility or value support mechanism.” Furthermore, the exchange acknowledged that there were indications that some insiders or team members could acquire 7% of the complete token supply a few moments after the Token Generation Event (TGE).
Before traders can access the innovation zone, they need to provide answers to two questions about the amount of money they could potentially lose while trading in this area and who would be accountable if they encounter a “total loss” of their funds.
Is $5 in Seven Days a Realistic Target For PEPE Coin Price?
Given the recent surge in PEPE’s price and market capitalization, some traders may be wondering whether the coin will reach $5 in the next seven days. While it’s difficult to predict the future of any cryptocurrency with certainty, it’s important to note that PEPE’s recent gains have come with some drawbacks for short-sellers.
Additionally, there are concerns about insider trading and the lack of a token utility or value support mechanism. As such, traders should exercise caution when considering investing in PEPE or any other meme coin.
PEPE Coin Price: A Simple Math Exercise
For those saying I’m spreading FUD
let’s do simple math#PEPE is currently $1.5 Billion mcapLet’s say you put $1,000 dollars now
For you to 2X your money to $2,000 it would have to reach a $3 Billion mcap.
We’re currently in a bear market, most alt coins are under $1 Billion
— SlumDOGE Millionaire (@ProTheDoge) May 5, 2023
PEPE Coin, a meme-inspired cryptocurrency, has recently attracted significant attention from investors. However, some skeptics have voiced concerns that its market capitalization may not be sustainable, especially given the current market conditions. In response to such criticism, one Twitter user has offered a simple math exercise to demonstrate the potential risks of investing in PEPE Coin.
Investment Calculation
Assuming the current market capitalization of PEPE Coin is $1.5 billion, the Twitter user argues that investors need to consider the potential returns on their investment. For instance, if an individual were to invest $1,000 in PEPE Coin today, they would need the market capitalization of the coin to reach $3 billion for them to double their investment and make $2,000.
Market Volatility
While this may seem like a reasonable investment, the Twitter user warns that PEPE Coin is currently operating in a bear market. This means that most alternative coins are trading below $1 billion, indicating that the probability of PEPE Coin’s market capitalization falling below $1 billion is relatively high. Therefore, an investor who put $1,000 into PEPE Coin may end up losing half their investment, potentially dropping to $500 or $600, in the event of a market correction.
PEPE Coin Price Will Reach $5 in the Next Seven Days if this happens!
If PEPE Coin’s price were to reach $5 in the next seven days, it would represent a significant increase from its current value. Such a price surge could be attributed to several factors, including increased demand for the coin, positive news or developments related to the project, or a broader market trend favoring cryptocurrencies.
If PEPE Coin were to reach this price point, it would also likely attract more attention from traders and investors, potentially leading to even higher prices in the future. However, it’s worth noting that cryptocurrency prices are notoriously volatile and can fluctuate rapidly, so there is no guarantee that PEPE Coin will reach $5 in the next seven days or that it will maintain that value in the long term.
Final Thoughts
The Twitter user reminds potential investors to consider the risks involved in investing in meme-inspired cryptocurrencies like PEPE Coin. While there is always a chance for high returns, investors need to weigh these against the potential losses. Ultimately, investing in cryptocurrencies always involves some degree of risk, and it is crucial to conduct thorough research and exercise caution when making investment decisions.
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Source: https://cryptoticker.io/en/pepe-coin-price-to-reach-5/