Ethereum based Pepe Coin crushed its 20-day moving average on Monday, rising 26% in one day to a price of $0.0000102 from just above the $0.000008 level. “Several technical indicators support the possibility of a sustained bull rally for PEPE,” according to a note in Binance Square.
“Whale activity has also been notably high, with significant accumulations observed over the past week,” the note added. Why is Pepe so popular among crypto investors, and are similar new meme coin projects like Ethereum’s new cat token $KAI really safe to buy?
Yes. Here’s Why:
Why Is Pepe Coin Price Surging?
So why did PEPE price go up today, even as top loss-leaders among cryptos were other Ethereum Layer-2 coins?
Because only the Pepe guys would be crazy enough to rally on a day that Lido DAO (LDO), Wormhole (W), and Worldcoin (WLD)– all Ethereum coins— are in liquidation.
These three ERC-20 tokens led losses Monday, with LDO down 6% in 24 hours, W down 6%, and WLD down 5%.
The PEPE guys don’t care. Because they’re feeling good, man.
Gamestop shares absolutely ripped on Monday following WallStreetBets’s degen stock trader Roaring Kitty’s first post in three years since the Gamestop fiasco in Jan. 2021.
As the Guardian reported back then:
“Reddit users in a group called WallStreetBets noticed that hedge funds, including one called Melvin Capital, had taken a large short position in GameStop. They decided to punish the Wall Street big boys and launched a co-ordinated buying spree.”
Short-sellers lost a billion dollars again after the Gamestop surge on Monday.
Some people say the Pepe guys are Scumbag Steve online dissidents with no respect for authority or their parents’ basements. But they looked more like Good Guy Greg when the Reddit WallStreetBet guys came to the rescue of a little video game company.
Because any non-degenerate investor like Warren Buffett would take a look at the company’s fundamentals and see it’s just a video game store chain based out of a little town in Texas.
Bruh, it’s just a video game company. Leave them alone!
The Pepe guys see the meme magic happening and they like it. So they’re not afraid if half the rest of their ecosystem is in liquidation. They’re amphibians. They can swim.
Pepe Coin is doing what Pepe Coin is doing. They’re focusing on what they’re focusing on. If this market gets enough investors to kiss this frog, it may turn into a prince. PEPE’s peers were also on the gain Monday with Arbi pepe up 21%, PepePAD up 20%, and Papa (PAPA) up 2%.
Are Memes Safe? Is Pepe Coin A Good Investment?
Meme coins like Pepe Coin and the Gamestop rally back in 2021 are studies in the realm of what is not supposed to happen.
Wall Street’s big hedge funds were not supposed to lose placing short bets on GameStop. Internet money supervised by AI instead of lawyers, with dog and frog cartoons on it, was never supposed to become real money with billions of USD worth of market cap behind them.
So are memes safe? These tokens are secured against loss, theft, and fraud by the Ethereum peer-to-peer blockchain network. Although markets fluctuate up and down for a number of reasons, most meme coins that become as successful as Pepe work to push up the value of their currencies with deflationary tokenomics. As Forbes Advisor reports:
“PEPE Coin uses a deflationary mechanism in which a small percentage of tokens gets burnt with each transaction. This mechanism helps to create scarcity and also increase the value of the left tokens over a period of time.”
The coin’s project website disclaims:
“PEPE is a meme coin with no intrinsic value or expectation of financial return. There is no formal team or roadmap. The coin is completely useless and for entertainment purposes only.”
But it’s these “joke” currencies that seem to be the most popular among retail investors. In the short term, after ascending above its 20-day moving average to 0.0000102 a coin Monday, PEPE technicals are signaling strong buy recommendations, according to TradingView data.
Another short term opportunity for meme coin hunters on the prowl for the next PEPE coin while it’s still a tadpole is Ethereum based Kai Cat ($KAI).
The ERC-20 standard token issuance marked $KAI is in its presale for a pre-market price that gives investors a price-stabilized entry into the $KAI economy.
