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The Pepe Craze (Meme Coins are Pumping)
Almost two weeks ago, we published an article about a Crypto investor that turned a $125 investment in Pepe into +$1M (in 4 days). Surprisingly, this meme coin has continued to grow and today has a market capitalization of over $1.2 billion.
Pepe has gone from an obscure, unknown, degenerate meme coin to the top 42nd-ranked cryptocurrency in the world in only a matter of a few weeks!
If you had invested $100 into Pepe a month ago, you would be a multimillionaire today.
Why has Pepe Pumped so Much?
There are two reasons I feel Pepe has performed so well.
The first has to do with the crypto market being less risk-averse when compared to the last year. We are seeing more investment going into crypto. Also, there has always been a sub-set of the crypto investing space looking for the next "degen" investment and they are looking to get back into the market.
This sub-set of crypto investors is into high-risk, high-reward investments and meme tokens are often their focus. Unfortunately, the reality is that the majority of meme coins are simply pump-and-dump schemes, offering no long-term value with many of these 'investors' targeting short-term gains over the quality of the project.
It's important to mention, meme coins, also known as 'joke coins' or meme-based cryptocurrencies, are a type of cryptocurrency that derives its value from internet memes, cultural references, or social media trends - they don't have any intrinsic value.
The second reason is Pepe did something different than the majority of the meme coins out there. It worked on being transparent about its token allocation.
Pepe has a DEXT Score of 99 - A perfect score (99/99) for a cryptocurrency.
One of the greatest fears meme investors have is pump-and-dump schemes. A perfect DEXT score has helped offer the needed confidence for many investors to jump into this project - which most meme tokens don't offer.
Over the last few weeks, we have seen this has paid off - handsomely if you were able to invest in Pepe early.
Although the crypto market has been rather stagnant over the last couple of weeks, the rise in interest (and investment) into meme coins has been an excellent indicator the market (and investors) are becoming more risk-tolerant. The media attention given to Pepe will also help to attract more investors into this space.
I see this as a positive sign for the cryptocurrency market as a whole in preparation for the upcoming bull market, expected to occur in the fourth quarter of this year.
Should I Buy Pepe?
Even if Pepe continues to grow to become the number one meme coin, surpassing DogeCoin (ranked #8) and Shiba Inu (Ranked #15), the price will max 2x-8x from where it is today - assuming the price continues to increase. Considering the risk/reward, if you haven't already invested in Pepe, it's likely already too late.
Where are the Real Gains Made?
The real gains are made by investors (in Pepe and other meme coins) who bought in early - soon after minting and certainly before mainstream media started talking about it.
If you are reading about a meme coin on mainstream media - You are already too late.
While the potential returns for meme coin investments can be extraordinary (as we have seen in the past with DogeCoin and Shiba Inu) it has become a popular investment because the capital required to invest is very low.
In many cases, you only need to invest $100 to earn significant gains - like this guy who turned $125 into more than $1M.
If this style of investing interests you, I would recommend using a research tool that searches for the latest minted coins which are trending and have a high DEXT score. The tool I recommend is Moralis Money.
Top Meme Coin Research Tool
If you missed out on the Pepe craze and looking for the next freshly minted meme coins that are getting traction (it's how I originally found Pepe), or just want to get in early on a brand new project with great potential- check out Moralis Money.
First, read our 100x Altcoin strategy article which discusses how to use this tool.
Every year there are one or two meme coins that explode in value. Even more during a bull market. These coins first started out valued at almost nothing - that is when you want to buy them.
Whether you love or hate meme coins, there has always been a market and investors interested in investing in this sector. It's degenerate, but it also has the potential to make life-changing wealth.
So, if you are an adventurous and high-risk investor and looking to part with a couple of hundred bucks on freshly minted meme coins, I would suggest you monitor the market daily and use a tool like Moralis Money to help you to sift through the chaff.