Over the past few weeks, the sensational PEPE memcoin has riveted the attention of the entire crypto community: whales were actively buying up the memcoin, ordinary users tried to repeat their transactions, and exchanges added the hype token to the listing one after another. However, some experts believe that it is worth staying away from the asset – and not only because of its high volatility.
Experts warn investors against buying PEPE
On May 6, DeFi Watch analytics platform founder Chris Black tweeted that the sad frog-inspired token was created by powerful people with big money, with retail investors playing pawns in their big game. John Deaton, a well-known lawyer in the Ripple case against the US Securities and Exchange Commission (SEC), also agrees with Black’s opinion. He previously reported that subscribers literally bombarded him with questions about whether to buy PEPE.
A large-scale discussion unfolded in the comments to the tweet, during which some users reasonably noted that the financial regulator does not pay attention to hype tokens, preferring instead to pursue large crypto companies.
The founder of Dizer Capital, Yassin Mobarak, also did not stand aside and called PEPE a “Trojan horse”, the purpose of which is to undermine investor confidence in the industry. He believes that sooner or later the memcoin bubble will burst, and the authorities will declare all cryptocurrencies dangerous, hiding behind the protection of ordinary users.
The hype around memcoin is starting to subside
However, the fears of crypto experts may well be in vain. Trader interest in PEPE is starting to fade as Memcoin is trading 60% below its all-time high and its market capitalization has more than halved since hitting $1.85 billion on May 5. It seems that users are turning their attention to new coins like Lady, Sponge, Four and Turbo.
However, crypto enthusiasts should keep in mind that memcoins are a highly volatile asset and the decision to add them to a portfolio comes with high risks. Always remember to follow risk and money management, allocate a small part of the capital to HYIP tokens and trade only with the money that you can afford to lose.
Source: bitcoinlinux.com
