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The frog-themed Pepe Memcoin (PEPE) has surged over 85% in the last 24 hours to surpass a $1 billion market cap three weeks after its first launch on April 14, 2023.
Ironically, PEPE’s main value proposition is that it doesn’t exist. There is a disclaimer on the official website of the cryptocurrency, which describes the investment in the token as follows:
“$PEPE is a meme coin with no intrinsic value and no financial return. There is no official team or roadmap. The coin is completely worthless and is for entertainment purposes only.”
Currently, Pepe seems to be following the same path as his more famous memcoin counterparts Dogecoin (DOGE) and Shiba Inu (SHIB).
DOGE is up more than 23,000% in 2021, driven largely by the token’s strong endorsement by eccentric billionaire Elon Musk on Twitter.
Similarly, SHIB surged over 1250% during the 2021 cryptocurrency bull market after using Dogecoin as a springboard for its popularity.
Lacking any underlying foundation, investments in memcoins carry extremely high risk and are notorious for extreme volatility and large fluctuations in value. A closer look at some of Pepe’s insider activity on the network points to some dealings regarding deals.
Related: 3 signs PEPE token is about to trap bulls after 2000% price increase
According to data from blockchain analytics service Lookonchain, five addresses believed to be associated with Pepe’s team generated $1.23 million in profits in the thin liquid market. They bought 8.87 trillion PEPE at a low price and sold over 90% of their holdings on Uniswap at a profit.
It is worth noting that some of the largest PEPE holders are centralized exchanges. However, according to data tracked by analyst 008.eth, OTC PEPE whales have recently reduced positions, hinting at profit taking that coincided with the May 3 price correction.
