New cryptocurrencies emerge usually during bull markets. This is when new hope and greed enter the market, giving way to new crypto projects. As Bitcoin broke $30,000 showing signs of a comeback, a new crypto project called Pepe Coin comes to life through a twitter post. Pepe blew up by more than 1,000%, which is normal for new volatile coins. What is Pepe coin? Is Pepe a scam? Let’s dig in.
What is Pepe Coin?
Pepe Coin is a relatively new cryptocurrency that enters the market as a competitor to existing meme coins like Dogecoin. Unlike many other new coins, Pepe Coin was launched quietly, without a presale or any taxes or fees associated with it. Additionally, the coin’s developers have not burnt any liquidity pools, nor have they renounced their contract.
The cryptocurrency takes its name and inspiration from Furie’s Pepe, a cartoon frog with a green humanoid body that first appeared in a 2005 comic. The meme featuring Pepe became incredibly popular in the 2010s, and it continues to be relevant years later. Pepe Coin’s mascot is an homage to the original Pepe meme, which has now been immortalized in the world of cryptocurrencies. However, the project came to be through a Twitter tweet announcing the project back on April 4th. The coin started being traded however on April 17th, 2023.
Where to Buy PEPE Coin?
Currently, this new coin can be bought on centralized exchanges such as Gate.io. However, decentralized exchanges are also listing PEPE coins, such as Uniswap (V2 & V3) and Pancakeswap (V3).
–> CLICK HERE TO BUY PEPE COIN <—
Is PEPE Coin a good buy?
Usually, new crypto projects are risky to buy. The reason behind this rationale is that it’ll take this project some time before it generates steam, credibility, and hype in the crypto scene. To add more risk, PEPE coin is a meme coin, which is a type of cryptocurrency that is even riskier2.
The reason behind meme coins being risky is that there’s no real value in purchasing this coin except for its “hype”. Once the hype is over, prices come down crashing. Also, there are many factors that show that PEPE is a classic Pump & Dump Project.
Is PEPE Coin a Pump and Dump?
Well, before we say if PEPE coin is a pump-and-dump, let’s see how to spot a pump-and-dump crypto project:
- Unrealistic promises: If a project promises unrealistic returns in a short amount of time, it may be a red flag. Avoid projects that promise guaranteed profits or claim to have a “sure thing” investment opportunity.
- Lack of transparency: Be wary of projects that lack transparency, such as hiding the identities of the team members, or not providing clear information on the project’s development progress, roadmap, or financials.
- High volatility: If a cryptocurrency’s price is fluctuating wildly, it may be a sign that it is being manipulated. Prices of legitimate cryptocurrencies may also be volatile, but typically, they reflect market forces rather than manipulation.
- Unusual trading patterns: Look for unusual trading patterns, such as sudden and massive spikes in trading volume, or large amounts of buy orders followed by equally large sell orders. These patterns could indicate a pump and dump scheme in progress.
- Social media hype: Beware of projects that rely heavily on social media hype, such as Twitter, Telegram, or Reddit. Pump and dump schemes often use social media platforms to spread false information and manipulate the market.
- Lack of fundamentals: A legitimate cryptocurrency project should have a strong technological foundation, a clear use case, and a well-defined target market. If a project lacks these fundamentals, it may be a sign that it is a pump and dump scheme.
PEPE coin checks so far 6 out of the 6 above characteristics. Let’s see why.
#1 Unrealistic Promises
According to their website, PEPE Coin aspires to flip Bitcoin. For a relatively new project (5 days old at the time of writing), no other crypto project comes even close to Bitcoin, which has been present since 2008. Even Ethereum which is the second biggest crypto project, it didn’t come close to flipping Bitcoin. This is a big unrealistic promise.
#2 Lack of Transparency
The people behind the project are not found anywhere. Even when looking at their domain credentials for their website, they went the extra mile to redact the information.
Also, who purchases a domain name for only 1 year? Unless you were planning to run your project for a short-term basis…According to Whois the domain name for their website expires after 1 year. The owners only purchased the domain for 1 year.
#3 High Volatility
The PEPE Coin rose by more than 1,000% in just 2 days, with other reports showing even higher numbers since inception. This is a purely speculative rise only to attract newcomers, and dump the token soon afterwards.
#4 Unusual Trading Patterns
According to Twitter user Louround, there are a few unknown wallets that hold more than 5% of the total circulating PEPE coins. If they decide to liquidate their wallets, PEPE coin prices should collapse.
#5 Social Media Hype
Well, most crypto projects are currently running on hype. But PEPE coin took it to the next level. The account on Twitter had around 561 followers. Then suddenly after 2 hours, the account jump from 561 to +47K followers. This is purely explained by the owners buying followers.
#6 Lack of Fundamentals
If we look at the roadmap of the project, many things are still “To be announced”. There is no apparent use case for this project, and the phases listed on the website are very immature. Pepe holders will receive a percentage of the Pepe merch sales…wowz, and that comes in phase 3, which is god knows when.
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Source: https://cryptoticker.io/en/what-is-pepe-coin-is-this-another-pump-and-dump/