SafeMoon - Pepe: Rise and Fall of Memecoins Value

Peace,

How are you doing Crypto hodlers?

Memecoins are cryptocurrencies created for the main purpose to have fun. Memecoins can also represent a joke or funny character popular on social networks. Memes are really popular on Twitter and other platforms of discussion. Similarly, Memecoins are known for their high volatility and speculative nature on the cryptocurrency exchange.

In general, memecoins experience pump-and-dump cycles, where the price is artificially inflated and then plummets soon after.

A. Pepecoin is the most recent illustration of this repetitive cycle of memecoin.

PEPE is a memecoin that was launched in April 2023. It was created as a tribute to the popular internet meme, Pepe the Frog. The price of Pepe initially started at $0.000000055142, which was recorded on April 18, 2023, but quickly rose to over $0.00000431 on May 05, 2023 Coingecko.

This pump was largely driven by social media hype and speculation. However, the token price plunged 56% similar to most memecoins. The price crashed a few days after the pump due to initial investors withdrawing profit.

B. SafeMoon

SafeMoon is a second case of memecoin huge rise and drop in price in a short period of time. It initially gained popularity due to its unique tokenomics, which included a 10% fee on all transactions, with 5% distributed to existing token holders and 5% burned.

However, the price of SafeMoon experienced a massive pump, increasing by over 1,000% in April 2021. The pump offers a unique feature that encourages holding over the long term with a 10% fee on every transaction.

In fact, SafeMoon has no utility and the only future expectation of profits is that the buying pressure will surpass the sale. This situation places Safemoon in the category of risky investment.

Overall, these examples illustrate the highly volatile nature of memecoins and the risks associated with investing in Dogecoin or Shiba Inu. The hype on the memecoin will surely die down causing significant losses for people that bought at the top. Pump-and-dump cycles can also result in significant gains for early investors. Therefore, it is crucial to conduct thorough research and understand the risks before investing in Memecoin let alone other types of cryptocurrency.

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