HYIP and investments
PEPE’s “HYIP meme token,” which refers us to the famous green frog meme, is gaining momentum. In April, a call appeared on Twitter by @pepecoineth: “Make memcoins great again” – a reference to the slogan of former U.S. President Donald Trump.
The developers of the project are convinced that the dogs have lost their former relevance, clearly hinting at competitors in the form of DOGE and SHIB.
Interestingly, in the first week of May, the capitalization of PEPE managed to exceed $1 billion.
Fundamental factor
Although the creators refer us to Matt Fury’s illustrations from the Boys Club comic book featuring the famous character, there are more serious technical features of the coin that investors and traders should consider.
So, the token is issued on Etherium on the ERC-20 standard. The consensus algorithm is PoS, and the maximum supply is 420.690 trillion;
Overall, nothing outstanding compared to its closest competitor SHIB, except that the maximum issue is claimed to be lower.
Otherwise, the information about the beta version of Shibarium and plans to create a meta-universe in the “dog” competitor PEPE do not speak in favor of the latter in terms of fundamental analysis.
However, the coin is clearly of interest as an object of speculation.
Technical analysis
It’s early to speak about any global trends of PEPE. It has been trading on major exchanges like Binance, OKX and Bybit for less than a month.
The only thing that can be noted so far is the strong volatility of the asset. For example, on Binance on the first day of trading PEPE added almost 89%.
Already the next day memcoin lost almost 30% of its value, and on May 12 it fell to its lowest point at $0.00000105, that is, more than 46% below the original price and 76% below the highs of May 5.
In addition, the cost of PEPE changes by at least 3%-plus during the day.
That said, if you look at the volumes, there was very little growth on the first day. What does this tell you? That a small group of enthusiasts decided to buy a new memcoin.
The excitement drove the price skyward, but it corrected on the same day. Further trading volumes increased, but there was not the same demand for PEPE.
This is confirmed by the fact that the coin is trading below the offering price.
Though during the last 10 days of trading on Binance the number of growth and decline sessions was equal, 5 of them, the total amount of growth and decline in the price of PEPE was evident.
Value trend
What we can say for sure is that the value of an asset is primarily influenced not by fundamentals, but by momentary factors, such as social media mentions by celebrities.
So, after the publication of a tweet by Elon Musk, which included PEPE, the price of the asset instantly rose by 50%.
Musk’s own reference was to some amendments to the U.S. Constitution, particularly the right of citizens to arms.
The token also managed to acquire an army of ardent fans, who turned against the cryptocurrency exchange Coinbase for the fact that the management regarded the meme with the frog Pepe as a “symbol of hatred” and considered the fondness for such coins “insane”.
An interesting point of view is held by crypto-enthusiast Ben Armstrong, who is convinced that in the future, all memcoins “will be worth zero.
At the same time, he himself continues to make money from trading, including memcoin trading, adding that it reminds him of “playing hot potato.
The dangers of investing in memcoins have also been warned about in the past by Edward Snowden, who considers investing in SHIB and other “dog coins” to be risky.
Conclusion
The following factors speak in favor of a possible rise:
- The coin has a significant capitalization, momentarily exceeding $1.6 billion,
- The coin has an army of fans and an active community,
- The coin is actively being added to various trading floors and centralized crypto exchanges, potentially leading to an influx of new cash into the asset.
On the other hand, the following factors speak in favor of a negative scenario for PEPE:
- Extremely high volatility and short duration of active trading. Already some investors have lost huge sums of money on unsuccessful investments in PEPE due to exchange rate volatility. The precedent of a major investor who lost $500,000 is well known.
- Lack of serious fundamental reasoning: the project does not have any new innovative technologies and solutions on the market, different from other altcoins. The rise in the exchange rate is mainly due to speculative factors.
- From the point of view of technical analysis, the current trend can be assessed as downtrend.. This is explained by the high overbought at the initial time interval of trading and the gradual closing of positions after the HYIP.
This material and the information in it does not constitute personal or other investment advice.
The editorial opinion may not coincide with the opinions of the author, analytical portals and experts.