Crypto investors warned about the PEPE token. What are PEPE’s red flags?
The PEPE token is a meme coin that has taken crypto by storm. Within just 48 hours of launch, PEPE achieved an eye-watering market cap of $150 million. But many crypto experts warn investors to trade PEPE with caution. The following issues have been identified:
1) The PEPE token is completely anonymous, and only appears on Twitter days before launch.
2) A series of large wallets emerged at the same time controlling more than the entire liquidity pool. There are strong suggestions that these wallets could be controlled by the PEPE token founders and could be used to drain liquidity.
3) In terms of liquidity, despite the huge market cap, PEPE’s Uniswap Liquidity Pool stands at just $3 million, a fraction of where you’d expect a healthy LP to be. This means that one or two whale sales could wipe out significant value once this first pump is complete.
4) The PEPE token has no roadmap, no layers and no plans to create fundamental values. 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 risks in PEPE.
One such project is EverGrow, whose chairman, a respected businessman and professional investor, was seen commenting on the PEPE situation on Twitter:
Lol, fair play to $PEPE. 2 days old, $112 million market cap. This is how the official website describes the token. Not sure it will end well, but pretty funny 😆 pic.twitter.com/n6ePgakgif
— Sam 🕊 (@EverGrowSam) 19 April 2023
EverGrow has a similar liquidity pool, $3 million, but their market cap is only $30 million, which makes the price seem incredibly good compared 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 tools; LunaSky NFT Market place, and Atlas Crypto Wallet, just around the corner. Many analysts have cited EverGrow as the token to watch for 2023.
Or to compare PEPE directly with a memecoin, we can look at SquidGrow. An established, respected token powered by THE Shiba Inu Whale, Shibtoshi. With a market cap of $15 million and tools being built, PEPE’s 10x comparative market cap seems illogical. SquidGrow has already gained a lot of exposure, despite launching in a bear market, and may be one to watch.
Investing in any crypto is high risk and investors should always research their investments and do appropriate due diligence.
