Can PEPE make a comeback? What do traders and analysts say?

Can PEPE make a comeback?

Author: Tom Mitchelhill, Cointelegraph; Translation: Song Xue, LianGuai

In 2023, the largest new meme coin Pepe (PEPE) encountered one of the worst fates that a new cryptocurrency could face – an anonymous developer suddenly sold tokens worth nearly $16 million on August 24, causing partial losses.

The official Pepe X (formerly known as Twitter) account explained that the price drop was due to “three former team members” secretly selling tokens without their knowledge – this action caused Pepe’s price to plummet by 26%, and in the following days, Pepe did not have much chance to recover.

Subsequently, cryptocurrency investors and meme coin enthusiasts were still puzzled – wondering if the frog-themed token had any hope of returning to its price before the rug pull.

• Digital Asset Lawyer Cryptocurrency Industry in the United States May Be on the Verge of Recovery
• Uniswap wins collective investor lawsuit, becoming a precedent sample in the DeFi regulatory challenge
• What does the US court’s ‘friendly judgment’ on Uniswap mean for DeFi regulation?

Cryptocurrency trader Reetika Trades saw some potential positives in PEPE during an interview, despite admitting that the developers’ method of selling was not ideal. She believes that in the long run, this event will have a “negligible impact” on the token’s prospects.

“It’s a meme coin with no practical promise, so the departure of some developers has no impact on the token,” she said.

“By selling a large number of tokens now, the threat of developers dumping potential tokens on people in the future has been reduced – this is healthier in the long run.”

However, Reetika also pointed out that Pepe is a meme coin that gained fame precisely because it is fundamentally worthless and has no underlying value for pricing. Therefore, the price of meme coins is prone to severe fluctuations, and any investment in these assets should be seen more like gambling.

Similarly, anonymous trader Horse stated that removing the remaining token supply from the hands of the selling developers is a beneficial long-term move, especially if it “tries to become similar to” Dogecoin.

“I think it will make a comeback.”

These sentiments were echoed in a report by cryptocurrency data provider Kaiko, which pointed out that despite the sudden price crash, meme coins’ liquidity remained surprisingly strong.

Despite the sudden crash, Pepe’s liquidity remains strong. Source: Kaiko

“It seems that the possibility of the team giving up on the project has not been sentenced to death as some people claim,” summarized the Kaiko researchers.

However, not everyone believes that Pepe’s future is bright.

Pepe may not come back

Analysts at Santiment warned that although Pepe became the hottest cryptocurrency after being accused, traders should expect “higher volatility”.

Famous trader Kaleo has expressed the most pessimistic view on Pepe, saying he hopes the meme coin “completely collapses”.

Even after Pepe’s team announced a new direction, Kaleo says he will remain cautious. However, he admits that Pepe may “rebound from here to new highs just to mess with me, because I decided to occupy a recognized moral high ground and put myself aside.”

Meanwhile, after the chaos of Pepe, an anonymous team has ventured to create another derivative product of the original Pepe token, claiming that this token does not have the problems caused by its predecessor.

The team behind this project describes 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, with no team tokens and deflationary,” they say.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!