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Step aside Shiba-Inu inspired tokens. A new memecoin has emerged – PEPE – which draws inspiration from the internet meme Pepe the Frog.
The creators of PEPE announced that “the dog days are over,” positioning PEPE as “the most memeable memecoin in existence.”
Launched on April 17th, the token has been on an upward trajectory since its inception. Within a week, PEPE reached a market capitalization of $137 million and experienced significant gains during that time. Following this remarkable price surge, the token, featuring a green frog with a humanoid form, has transformed early investors into millionaires. However, cashing out those profits may prove challenging.
PEPE Millionaire
Beyond the scarcity of buyers, it is crucial to assess the availability of adequate liquidity, which is generally found in automated market maker pools.
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Market analyst Grzegorz Drozdz noted that liquidating the investor’s PEPE tokens could take 46,200 years, assuming demand remains constant. Attempting to exit the position could severely affect the price of the crypto asset, potentially causing PEPE’s value to drop below the initial purchase price.
Nonetheless, the token’s liquidity is anticipated to improve as more listings become available on cryptocurrency exchanges.
Centralization
Even though it has only recently launched, many within the crypto community have raised concerns regarding centralization. Six wallets have been identified as holding over $1 million in PEPE.
This degree of centralization could pose risks, as it grants those holders significant influence over the token’s price. Speculation has arisen that stories of investors becoming millionaires may serve as a lure to attract unsuspecting participants into the emerging ecosystem.
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