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PEPE token is a meme coin that has taken crypto by storm. Within just 48 hours of launch, PEPE achieved an eye-watering $150 million market cap. But many crypto experts are warning investors to trade PEPE with caution. The following issues have been identified:
1) The PEPE token is completely anonymous, only appearing on Twitter days before the launch.
2) A series of large wallets appeared simultaneously, controlling more than the entire liquidity pool. There are strong suggestions these wallets may be controlled by the PEPE token founders and could be used to drain liquidity.
3) Relating to liquidity, despite the enormous market cap, PEPE's Uniswap Liquidity Pool stands at just $3 million, a fraction of where you would expect a healthy LP to be. This means one or two whale sells could wipe off significant value once this initial pump is complete.
4) The PEPE token has no roadmap, no team, and no plans to create fundamental value. It feels like a matter of time before the price collapses.
Analysts have compared PEPE to other tokens with similar sized liquidity pools to see if investors may be taking unnecessary risk in PEPE.
One such project is EverGrow, whose Chairman, a respected businessman and professional investor, was seen commenting on the PEPE situation on Twitter:
EverGrow has a similar sized liquidity pool, $3 million, but their market cap is just $30 million, making the price seem incredibly good value in comparison to PEPE.
EverGrow is one of the most respected, and professionally run projects in DeFi, with a strong roadmap, good funding, and the launch of two highly anticipated utilities; LunaSky NFT Market place, and Atlas Crypto Wallet, just around the corner. Many analysts have cited EverGrow as being the token to watch for 2023.
Or to compare PEPE directly to a memecoin, we could look at SquidGrow. An established, respected token run by THE Shiba Inu Whale, Shibtoshi. With a $15 million market cap, and utilities being built, PEPE's 10x comparative market cap seems illogical. SquidGrow has already received a lot of exposure, despite being launched in a bear market, and could be one to watch.
Investing in any crypto is high risk and investors should always research their investment and do appropriate due diligence.
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Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.
