Pepe (PEPE), a frog-themed memecoin, has soared over 85% in the last 24 hours to achieve a $1 billion market cap three weeks after its April 14, 2023 launch.
PEPE’s main value proposition, however, is that there isn’t one. The cryptocurrency’s official website has a disclaimer that characterizes investing in the token as follows:
“$PEPE is a meme coin with no intrinsic value or expectation of financial return. There is no formal team or roadmap. the coin is completely useless and for entertainment purposes only.”
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DOGE increased by more than 23,000% in 2021, owing primarily to billionaire Elon Musk’s outspoken endorsement for the token on Twitter.
Similarly, SHIB increased by approximately 1,250% during the 2021 crypto bull market after using Dogecoin as a launch pad.
Investment in memecoins is high risk because to the lack of underlying fundamentals, and they are infamous for severe volatility and large swings in value. A closer examination of some of the on-chain activity by Pepe insiders reveals some troubling moves.
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Data from the blockchain analytics service Lookonchain show that five addresses purportedly affiliated to the Pepe team profited $1.23 million in a thinly traded market.
It’s worth noting that centralized exchanges are among the top PEPE holders. However, according to analyst “008.eth,” non-exchange PEPE whales have recently decreased positions, implying profit-taking that coincided with a market fall on May 3.
