Can PEPE make a comeback? Traders, analysts and Pepe maxis weigh in

nestorsauer8 31. August 2023 0

The greatest new memecoin of 2023, Pepe (PEPE), suffered one of many worst attainable fates that may befall a new crypto asset — a partial rug pull after its anonymous developers abruptly sold almost $16 million price of the token on Aug. 24. 

The official Pepe X (previously often called Twitter) account defined the drop was because of “three ex-team members” going behind their again and promoting the tokens with out their information — a transfer that noticed the value of Pepe plummet as a lot as 26% in the times following, with out a lot respite. 

In the wake, crypto traders and memecoin fanatics are nonetheless scratching their heads — pondering if the frog-themed token may ever hope to return to pre-rug costs. 

Speaking to Cointelegraph, crypto dealer Reetika Trades noticed some potential positivity for PEPE, regardless of admitting the style in which the devs bought wasn’t supreme. She believes that the occasion will in the end have “negligible effects” on the token’s outlook in the long term.

“It’s a memecoin with no promise of utility, so some devs leaving makes no difference to the token,” she mentioned.

“By selling a lot of the coins now, the threat of the total number of potential coins the devs could dump on people has reduced in the future — which is healthier in the long run.”

However, Reetika additionally identified that Pepe is a memecoin that has made its title by being easy that it’s basically nugatory and has no underlying worth upon which to cost it. As a end result, the value of memecoins is liable to excessive volatility, and any funding in these property ought to be handled as extra akin to playing.

Similarly, pseudonymous dealer Horse mentioned that getting the remaining provide of the tokens out of the palms of the builders who bought was a useful transfer long run, particularly if it’s “attempting to become similar” to Dogecoin (DOGE).

“I think it will make a comeback.”

These sentiments had been echoed in a report from crypto information supplier Kaiko, which noted that regardless of the sudden crash in value, the liquidity of the memecoin held up surprisingly effectively.

Pepe liquidity held sturdy regardless of the sudden plunge. Source: Kaiko

“It seems that the team’s potential abandonment of the project is not yet the death sentence that some have proclaimed,” Kaiko researchers concluded.

However, not everybody agrees that the longer term is distinctly vibrant for Pepe.

Pepe won’t be coming again

Analysts from Santiment warned that merchants ought to anticipate “higher volatility” regardless of Pepe changing into the highest trending cryptocurrency in the wake of the rug pull allegations.

Offering attainable probably the most bearish tackle Pepe was distinguished dealer Kaleo, who mentioned he hoped that the memecoin “completely collapses.”

Even following the announcement of the brand new route from the Pepe workforce, Kaleo mentioned he would stay on the sidelines. However, he admitted that Pepe would most likely “rally to new highs from here just to spite me because I decided to take a perceived moral high ground and sideline myself.”

Related: PEPE price to zero? Pepecoin rug pull allegations put memecoin at risk

Meanwhile, in the wake of the turmoil with Pepe, one nameless workforce has ventured to create yet one more spin-off of the unique Pepe token, one which they declare is free from the problems that got here together with its predecessor.

Speaking to Cointelegraph, the workforce behind the mission described the brand new PEPE token because the “true essence” of decentralized finance.

“The new Pepe token is essentially what the old Pepe token should have been; decentralized, community driven, no team tokens and deflationary,” they mentioned.

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