• PEPE, a new meme coin, surged 7,500x in value after launch.
• However, the asset recorded a 60% pullback and experts have raised red flags.
• Investors must be cautious as the token is highly speculative and there are reports of market manipulation by the project’s developers.
PEPE: A New Meme Coin
PEPE is a new meme coin that experienced a huge surge of 7,500x in value just days after its launch. This has caused excitement among crypto investors and sparked speculation about potential profits from investing in this asset.
Risk Factors for Investors
However, several red flags have been raised by experts and investors need to be cautious when considering investing in PEPE. Reports have accused the developer of using his discretion to blacklist wallets and manipulating the token supply, raising suspicions of rug pulls. There are also concerns about the distribution of PEPE supply with six wallets holding over $1 million worth each which could lead to potential market manipulation. Additionally, liquidity issues mean it would take 46,200 years to liquidate these tokens if demand decreases.
Highly Speculative Asset
The high volatility associated with PEPE means that despite its huge market cap, it is still considered a highly speculative asset with considerable risk factors involved for investors – especially given its lack of transparency prior to launch on Twitter days before launch.
Investors Need To Be Cautious
Given all these risks associated with PEPE investment, investors should take extra caution when considering adding this token to their portfolio or buying into it for short-term profit opportunities – even though it experienced an impressive rebound after its 60% pullback following initial launch gains..
In conclusion, although PEPE may offer some level of upside potential due to its impressive performance upon launch and subsequent rebounds from pullbacks; there are some serious risk factors that should not be overlooked such as developer rug pulls and liquidity issues which can potentially lead to losses for investors who engage in short-term trading with this asset without proper due diligence beforehand.