In a recent tweet, crypto analyst Benjamin Cowen reveals the dark truth behind meme coins following the PEPE rally.
‘Their stories are lies, they only make their founders rich, pump and dump operations’
Recently, the rise of meme coins has been a topic of discussion among crypto players. Popular analyst Benjamin Cowen says this rally only made the founders rich. He also stated that the strong community stories about it are lies.
Cowen says most meme coins come from the same group and are just a ‘pump-empty’ operation.
Daily reminder that these memecoins that are flooding the market exist to make the founders rich.
The “strong community” narrative is garbage.
Most of these memes are created by the same group, just pumping and dumping until it no longer is profitable.
— Benjamin Cowen (@intocryptoverse) May 9, 2023
Cowen’s comments came after Pepe Coin (PEPE) experienced a spike around April 20. Pepe’s price increased tens of thousands of times in three weeks. In fact, its market value exceeded $1.6 billion at one point. This rise is whetting the appetite of market investors as some people claim to have made millions of dollars from small investments.
Is the Pepe Coin rally over?
Current market data from CoinGecko points to a slight correction for Pepe. As of now, the price of PEPE is at $0.00000186, reflecting a 4.9% drop. It fell 55.20% from its all-time high of $0.00000431 just five days ago. However, the meme coin still has a market cap of over $809 million.
“PEPE will surpass Dogecoin”
Elsewhere, Twitter crypto analyst LilMoonLambo suggested that Pepe could replace Dogecoin (DOGE) as a market sentiment indicator.
hot take: $PEPE will become the new $DOGE in being a market sentiment indicator
Whenever PEPE pumps, it's a good indicator that the rest of the market will be bullish pic.twitter.com/R4CvTegE8V
— LilMoonLambo (@LilMoonLambo) May 10, 2023
This estimate is based on whales that have been actively buying PEPE over the past few days. On-chain tracker Lookonchain has revealed that a prominent whale, “Machi Big Brother,” has purchased a total of 66 billion PEPEs using 73.4 Ethereum ($137,000) in the past three days. The average purchase price was $0.000002082.
Lookonchain stated that after the price dropped, three other whales invested millions of dollars in PEPE and bought meme coins.
Machi Big Brother bought 6B $PEPE again 30 mins ago.
He has bought a total of 66B $PEPE with 73.4 $ETH ($137K) in the past 3 days, with an average buying price of $0.000002082.https://t.co/8TP6j6unZw pic.twitter.com/Ubmg3ZC1rm
— Lookonchain (@lookonchain) May 10, 2023
Despite the recent popularity of coins like Pepe, it has had a rough journey with its ups and downs. Oanda analyst Edward Moya believes that interest in meme coins like Pepe could affect Bitcoin’s performance.
Accordingly, Bitcoin recently dropped below $28,000. Moya claims that the excessive interest in meme coins is driving potential investors away from Bitcoin.
The right meme coin investment strategy
As Kriptokoin.com, we quoted DeFi expert Miles Deutscher’s advice on this subject. Also, it should be noted that after PEPE, the interest in TURBO, another meme coin, has increased. High rates of return are among the main reasons that attract investors to these projects.
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