Ethereum-based memecoin Pepe is up 92% in the past 24 hours, making it the third-largest memecoin by market capitalization.
Pepe’s price rises rapidly
Launched on April 17, Pepe has grown from nothing to its current market cap of $448.9 million — rewarding early investors handsomely and sparking buzz.
Over the past week, multiple tweets have posted stories of “degens” pouring a relatively small amount of money into Pepe and becoming millionaires overnight — generating FOMO akin to the last time we saw it during a bull market. Dogecoin Price 2021.
Pepe’s strong performance surpassed FLOKI and Baby Doge Coin to become the third largest memecoin by market capitalization amid overall market weakness.
However, overtaking the Shiba for second place is a dilemma as he is now worth ten times what Pepe is worth.
The four-hour chart below shows an uptrend on April 29 that took Pepe from $0.0000003316 to $0.0000012 today—an increase of 275%.
The amount earned from the local bottom of 0.000000055142 on April 18 equates to a gain of 1.887% – meaning a $1,000 investment would be worth $21,400.
Pepe has no obvious use case, which is typical for a memecoin — aside from being associated with Pepe the Frog — which started out as a character in Matt Furie’s 2005 Boys Club comic.
CoinMarketCap says Pepe is a deflationary meme coin created in honor of the cartoon character. The page also mentions a redistribution system that rewards long-term stakeholders as well as a burn mechanism.
A contract analysis conducted by Go Plus Labs highlighted three projects of interest to Pepe.
- The number of token transactions is limited.
- The maximum token transaction can be modified.
- Contract owners can blacklist addresses.
David Wood tweeted that Pepe developers could raise the transaction tax. However, this contradicts Go Plus Labs’ analysis, which states that contract owners cannot amend transaction taxes.
According to CMC, Pepe’s creator is anonymous and there is no information about the group.
Elsewhere, Seychelles-based cryptocurrency exchange OKX has announced the listing of PEPE on its spot trading market. The PEPE/USDT trading pair will be launched on May 1st, and PEPE withdrawals will be available on May 2nd.
The memecoin price soared more than 90% within hours of the disclosure, making it the top 100 token by market capitalization.
Trader Lost $300,000 in PEPE Swap
In a recent incident, a trader allegedly lost approximately $300,000 worth of PEPE tokens while attempting to exchange them using MetaMask’s exchange function.
Traders set their slippage tolerance too high, resulting in significant financial losses.
The roots of this unfortunate incident can be traced back to low liquidity in the liquidity pool, which caused a severe imbalance in the trading process.
Despite the heavy losses, the trader has made solid profits overall. However, the incident has become a “top eight” topic in the crypto community.
Many ridiculed traders’ ignorance of the market and decentralized swaps, emphasizing that even inexperienced people can make handsome profits in the crypto world. .
The trader’s mistake serves as a cautionary tale for others venturing into the world of decentralized cryptocurrency trading, emphasizing the importance of understanding AMM and LP technology.
Trading in cryptocurrency markets, especially decentralized ones, requires a thorough understanding of the mechanics behind swaps and liquidity pools. Traders must be familiar with the different platforms and tools available to minimize the risk of significant losses. This includes understanding the potential consequences of establishing high slippage and understanding the impact of low liquidity on trading.
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