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EPISODE 28
Reality Hits Memecoins as PEPE Traders Lose $7M in 24 Hours
The world of cryptocurrency is no stranger to volatility.
The recent losses suffered by PEPE traders serve as a stark reminder of the risks involved in investing in memecoins. In just 24 hours, traders lost a staggering $7 million, highlighting the unpredictable nature of these digital assets.
PEPE is a memecoin based on the popular cartoon character, Pepe the Frog. It is one of many memecoins that have emerged recently, taking inspiration from internet memes and viral content. These coins often have no intrinsic value, but their popularity among social media communities can drive demand and create a market for traders to buy and sell.
However, the lack of regulation and oversight in memecoins makes them particularly vulnerable to market manipulation and pump-and-dump schemes. In these scenarios, a group of investors can artificially inflate the price of a memecoin through coordinated buying, only to sell their holdings at a profit once the price peaks.
The recent losses suffered by PEPE traders appear to result from a pump-and-dump scheme. On May 5th, the price of PEPE soared from $0.00000195 to $0.00000159 in just a few hours before crashing back down to $0.00000297. This rapid price…
