2023-05-29 17:20:00
Inspired by a green frog shared as an internet meme, the Pepe cryptocurrency rose almost 7,000% in less than 20 days of its existence. CoinMarketCap numbers point out the peak of $1.5 billion in market value on the 5th of May.
Already in May 23, a Pepe saw its market cap drop to less than $625 million and this raised a debate regarding “meme coins”, also called memecoins, qwho use viral images from the internet to become popular.
This Monday followingnoon (29), Pepe’s assets were quoted at US$ 561 million and in just the last 24 hours the devaluation was 4.25%. Analysts interviewed by the g1 portal warned of the high risk of investing in this type of product.
According to investment experts, this type of asset is very speculative and should only be used for entertainment purposes. Memecoins are mass-produced assets with very low values and are named following memes.
The various financial market operators heard by the report also noted the lack of solid fundamentals, such as those existing among more traditional cryptocurrencies, such as Bitcoin and Ethereum, which are the most popular virtual currencies.
It is worth mentioning that these meme coins are also usually less secure, in addition to not being well founded, that is, they do not have a specific purpose, such as being a means of payment or a business model, for example. In general, they are simple “jokes”.
And you, invest in meme coins? Tell us in the comments down below!
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