By George Ward
The crypto market is no stranger to the hype, and Pepe Coin (PEPE) is the latest digital asset to flip the broader ecosystem for some time. Early investors are riding on the Pepe Coin frenzy, just like they did with Dogecoin (DOGE) and Shiba Inu (SHIB), with traders earning millions in profits.
The unprecedented rise in the popularity of Pepe Coin has sparked a frenzy, leading to the proliferation of countless meme coins on the Ethereum blockchain. Amid the surge in canine theme tokens, many imitators have fulfilled their 100x promises.
However, most were deceitful schemes and rug pulls, preying on unsuspecting traders yearning for the next Dogecoin or Shiba Inu. Moreover, one of the numerous distressing outcomes following PEPE’s emergence is that most frauds could have been prevented.
As a result, this guide will show you how to be safe as you navigate the tricky digital asset investment landscape.
Pepe Coin Explained
When Pepe the Frog was created in 2005 by Matt Furie, he never imagined that it would become the most widely used internet meme years later. Eighteen years after its inception, Pepe the Frog has made some crypto traders overnight millionaires after a digital meme asset was created in its image.
As one of the latest Ethereum blockchain additions, PEPE Coin emerges as an ERC-20 token with a distinctive identity. After a quiet unveiling, PEPE issuers defied the norm by forgoing any presale and introduced an exciting twist.
They offered a tax-free structure, a liquefied pool of funds, and a renounced contract. Per its official website, the network’s ingenious approach aims to establish PEPE as a coin “dedicated to the people, eternally.”
Similar to other meme tokens, PEPE deviated from the traditional path by disregarding any long-term vision or sustainable roadmap to pursue.
What Triggered Pepe Coin’s Price Surge?
Despite the rapid spike in the price of PEPE, the crypto market couldn’t explain why this happened. Nevertheless, skeptics believe that the emergence of Pepe Coin was an agenda orchestrated by some of the crypto industry’s biggest influencers to create a pump-and-dump phenomenon.
Furthermore, there is a narrative that early investors have transformed their meager-valued PEPE tokens into huge fortunes, fueling the already rampant FOMO spreading throughout the cryptocurrency industry.
Meanwhile, PEPE’s astonishing trading volume pushed the meme coin to become listed on top-tier crypto exchanges and leveraged the lucrative trading fees. These listings caused PEPE to reach its pinnacle in price, soaring to an all-time high and boasting a remarkable market capitalization of more than $1.5 billion.
Staying Safe In The DeFi Space
Due to the complexity of the decentralized finance (DeFi) ecosystem, it takes knowledge, caution, and a strategic plan to navigate the meme coin season. Hence, it is crucial to familiarize yourself with relevant terminologies, which helps you to identify such scam techniques and implement strategies to evade them.
Locked Liquidity
This refers to when a token is locked, and some capital is reserved in the liquidity pool, but such capital cannot be moved. As a result, this process ensures that traders have access to enough capital to buy and sell an asset.
Top Holders
Here, the token is distributed so that no single wallet address holds more assets than the others. When top holders dominate, they can manipulate the process by purchasing or selling massive tokens.
Renounced Contract
This is another security measure that is popular in the meme coin market. A renounced contract indicates that its original creators are no longer interacting with it.
Thus, users are always advised to verify and renounce an asset’s contract before buying any meme token. Remember that the meme coin season has several dangers to traders, like low value, market volatility, rug pull, pump, and dump schemes.
Hence, it is essential to familiarize yourself with relevant information using these techniques to avoid being scammed.