Summary
• A new meme coin, PEPE, surged 7,500x shortly after its launch but experienced a 60% pullback.
• Experts have raised red flags regarding the token’s developer and there are concerns about market manipulation and liquidity.
• Despite the risks, some investors have still seen massive short-term profits from trading PEPE.
PEPE Token Surges & Pulls Back
A new meme coin, PEPE, made an entry into the crypto market with a 7,500x price increase. But, several red flags have been raised by experts and investors need to be cautious. PEPE became one of the fastest-rising cryptocurrencies after announcing its presence with a whopping surge of 7,500x a few days after launch. However, there were speculations of developer rug pull after the meme coin recorded a pullback of 60 percent. PEPE did not stay down for long as it staged a quick rebound to regain 40 percent of its lost value. In the last seven days, the asset has surged by 426 percent to trade at $0.00000029955477. An Ethereum account is said to have bought 1.8 trillion PEPE for $20 and saw it increase to $160,000 while another investor who bought 5.9 trillion PEPE for $250 saw his portfolio rise to $1.02 million .
Red Flags Raised by Experts
There are reports that accuse the developer of using his discretion to blacklist wallets which holds around $850,000 worth of tokens when purchased for just $27 at early stage leading to potential exploitation by those managing the project plus distribution of token supply is also questionable with six wallets holding over one million dollars worth each raising alarm for serious market manipulation and price volatility which can put investors’ money in danger; then there is also liquidity issue as despite huge market cap Uniswap Liquidity Pool only stands at three million which is far from what perfect liquidity pool should be; finally anonymity surrounding project before launching on Twitter was another concerning factor as no information was provided prior launch date making it highly suspicious activity overall risking all those investing in such projects without complete knowledge about underlying mechanisms and factors affecting prices over time..
Chance for Short-Term Profit?
Despite these risks some investors may still see massive short term profits from trading this meme token based on recent examples given above however as per expert opinion Grzegorz Drozdz from Conotoxia Ltd believes that it would take 46200 years assuming no decreasing demand in order liquidate these tokens completely making them highly speculative & dangerous asset class overall so caution must be exercised if thinking about investing in such projects or coins because losses could exceed gains in long run due to lack proper understanding or wrong decisions taken leading up investment plans going wrong altogether in end..
Conclusion
Even though some people may have seen short term profits from investing in PEPE token due to its huge surges recently but investors need to exercise caution before investing as various red flags have been raised related with this meme coin making it quite risky & high volatile asset class where chances losses can exceed gains drastically so better approach might be wait & watch first rather than jumping right away into investment plans without proper understanding or research done beforehand..
