Pepecoin (PEPE), the latest meme coin to hit the market, has been making headlines with its impressive performance, surging to a nearly $1 billion market capitalization within weeks of its launch. While skeptics warned of an impending collapse due to the large number of whales who bought PEPE in the hours after its release in mid-April, the token’s value continued to soar.
According to CoinGecko data, PEPE has gained around 500% in the past two weeks, despite the negative funding rates in perpetual futures tied to the token, indicating a strong bearish sentiment in the derivatives market. This has resulted in significant losses for short sellers, with shorts against PEPE losing at least $11 million on several exchanges in the past 24 hours, as reported by CoinGlass.
However, it’s important to exercise caution when investing in volatile assets like PEPE. Short selling can be a risky strategy, and traders should conduct thorough research and risk assessments before making any investment decisions. While PEPE’s rise in value has been impressive, it’s essential to keep in mind that such gains can be short-lived, and investors should remain vigilant.
In conclusion, Pepecoin’s recent surge in value is undoubtedly impressive, but investors must exercise caution when investing in such volatile assets. As with any investment, thorough research and risk assessments are necessary before making any investment decisions.
