Can PEPE make a comeback? Traders, analysts and Pepe maxis weigh in

August 31, 2023 CryptoExpert Altcoin
Bybit
Bybit


The biggest new memecoin of 2023, Pepe (PEPE), suffered one of the worst possible fates that can befall a new crypto asset — a partial rug pull after its anonymous developers abruptly sold nearly $16 million worth of the token on Aug. 24. 

The official Pepe X (formerly known as Twitter) account explained the drop was due to “three ex-team members” going behind their back and selling the tokens without their knowledge — a move that saw the price of Pepe plummet as much as 26% in the days following, without much respite. 

In the wake, crypto investors and memecoin enthusiasts are still scratching their heads — pondering if the frog-themed token could ever hope to return to pre-rug prices. 

Speaking to Cointelegraph, crypto trader Reetika Trades saw some potential positivity for PEPE, despite admitting the manner in which the devs sold wasn’t ideal. She believes that the event will ultimately have “negligible effects” on the token’s outlook in the long run.

Genesis-mining

“It’s a memecoin with no promise of utility, so some devs leaving makes no difference to the token,” she said.

“By selling a lot of the coins now, the threat of the total number of potential coins the devs could dump on people has reduced in the future — which is healthier in the long run.”

However, Reetika also pointed out that Pepe is a memecoin that has made its name by being straightforward that it is fundamentally worthless and has no underlying value upon which to price it. As a result, the price of memecoins is prone to extreme volatility, and any investment in these assets should be treated as more akin to gambling.

Similarly, pseudonymous trader Horse said that getting the remaining supply of the tokens out of the hands of the developers who sold was a beneficial move long term, especially if it’s “attempting to become similar” to Dogecoin (DOGE).

“I think it will make a comeback.”

These sentiments were echoed in a report from crypto data provider Kaiko, which noted that despite the sudden crash in price, the liquidity of the memecoin held up surprisingly well.

Pepe liquidity held strong despite the sudden plunge. Source: Kaiko

“It seems that the team’s potential abandonment of the project is not yet the death sentence that some have proclaimed,” Kaiko researchers concluded.

However, not everyone agrees that the future is distinctly bright for Pepe.

Pepe might not be coming back

Analysts from Santiment warned that traders should expect “higher volatility” despite Pepe becoming the top trending cryptocurrency in the wake of the rug pull allegations.

Offering possible the most bearish take on Pepe was prominent trader Kaleo, who said he hoped that the memecoin “completely collapses.”

Even following the announcement of the new direction from the Pepe team, Kaleo said he would remain on the sidelines. However, he admitted that Pepe would probably “rally to new highs from here just to spite me because I decided to take a perceived moral high ground and sideline myself.”

Related: PEPE price to zero? Pepecoin rug pull allegations put memecoin at risk

Meanwhile, in the wake of the turmoil with Pepe, one anonymous team has ventured to create yet another spin-off of the original Pepe token, one that they claim is free from the issues that came along with its predecessor.

Speaking to Cointelegraph, the team behind the project described the new PEPE token as the “true essence” of decentralized finance.

“The new Pepe token is essentially what the old Pepe token should have been; decentralized, community driven, no team tokens and deflationary,” they said.

Magazine: How smart people invest in dumb memecoins — 3-point plan for success





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