Memecoins tips crypto markets as Bitcoin halving approaches, says Meltem Demirors
The recent memecoin frenzy is indicative of changing attitudes in the crypto space, according to CoinShares chief strategy officer Meltem Demirors.
In a new interview on Crypto Banter, Demirors addresses PEPE, a volatile new token inspired by the controversial “Pepe the Frog” memes.
“Pepe and this whole frog coin phenomenon, I’m not endorsing it in any way, I’m not participating in it in any way, but I think it’s fascinating to see how much conversation it’s spurred and how much it’s changed the sentiment even in some of the the groups and communities I’m in. People got really excited, I see a lot of “Oh baby, we’re back.”
Demirors notes that crypto investors were much more comfortable with exposure to Bitcoin (BTC) and Ethereum (ETH) in Q4 2022 and Q1 2023 because they are lower-risk digital assets.
However, the recent PEPE frenzy indicates that momentum may be changing, according to the CoinShares CEO.
“Now people are talking about these long tail coins, people are trying to figure out what [they] want to have exposure for when we go into Q3/Q4. And again, we can’t forget, we’re entering another Bitcoin halving cycle. Now, again, history doesn’t repeat itself, but it rhymes, and I think if we look at the pattern over the last three Bitcoin halvings, if we follow a similar pattern this time, we have a lot more data on this history of crypto, its price behavior over time, its price behavior in these different supply/demand environments, and so I think that’s important to look at.
I think we will see more money staying within the crypto space looking to move further out on the risk curve as people see the opportunity to generate returns. So to me, Pepe is a good indicator that at least people within the crypto space feel more comfortable with risk.”
Historically, emerging cryptomemecoins tend to exhibit extreme volatility and may suffer from high concentrations of wealth and increased risk of pump-and-dump price crashes.
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