Memecoins appear to be taking over the crypto space for now. Many projects have launched in the past month with analysts cautioning that most of the new tokens might be scams disguised as worthwhile investments. One such project that is taking over the meme coin space is Pepe the Frog token (PEPEBNB).
The team behind this project insists that the project is primarily about embracing the power of memes and developing a distinct and engaging experience for crypto investors and enthusiasts. They are inspired by the enthusiasm of the online community coupled with the iconic character of Pepe the Frog, which has attracted and entertained many internet users for several years.
This project seems to be filled with passion and excitement as the developers strived to introduce PEPEBNB and set up a vibrant community surrounding it. But, some of its success seems to arise from the success recorded by another meme coin called PEPE.
Since PEPE came onto the scene on April 16, 2023, it has recorded massive gains and many other memecoin projects have come up aiming to profit from its current euphoria. Pepe the Frog launched with a vision to integrate crypto excitement with the fun and lightheartedness of memes. The project seems to have gained traction and has a growing following.
The power of social media and memes seems to create a unique and all-inclusive environment for crypto enthusiasts and investors to gather and share in the excitement that comes with new projects. According to Pepe the Frog developers, they let their community members be active participants who contribute lots of their creativity and ideas to help in shaping the direction and development of this emerging project.
Just like any other crypto project active in the current market, Pepe the Frog states that it is looking for various ways to engage its community and increase value to the token holders. It is seeking collaborations, partnerships, and many other initiatives that align with the project’s goals and vision.
Based on the project’s website, the PEPEBNB token can be used in its ecosystem for different purposes. That may include staking for rewards, participating in governance decisions, or as a medium of exchange for services and goods in the thriving network of partners.
Related: SaiyanPepe: The Meme-Fueled Crypto Project Taking the Polygon Network by Storm
PEPEBNB is said to be more than just a meme coin and a great investment opportunity. However, some issues have pushed analysts to insist that the project is highly risky.
Is The Pepe The Frog Token Project A Scam?
The project may be attracting many investors seeking to make a quick profit but analysts insist that Pepe the Frog is still risky. Some issues have been identified in the project that are believed to make it considerably risky.
Currently, the project is relatively new, barely a month old, hence no severe issues have been identified. However, there is no team profile available and that is quite worrying because, in case of anything, investors do not know where to turn seeking solutions.
Also, there is an official whitepaper to guide investors on the development path of the project. That means the project might have no practical utility and the price growth is solely based on speculation from investors looking to make a profit from the meme coin frenzy.
Pepe the Frog has not made its source code available and it does not have a subreddit which makes it highly suspicious. Some commentators say that it has the characteristics of a rug pull that is waiting to happen due to the scanty details about the project owners and its lack of defined communication channels.
There are minimal mainstream news stories for this project so far a month after its launch. That is strange for a project that aims to dominate the meme coin space in the coming months. Nonetheless, this project is still relatively new which may account for the lack of news about it on mainstream media channels.
Related: What Are the Best Use-Cases for Memecoins?
The low-count search result and low-count YouTube results mean that the community is not as active as the project developers want investors to believe. Also, the project has a low trading volume. Recent reports indicate that ten wallets hold over 25% of the token supply which makes Pepe the Frog token extensively centralized.
In general, the mainstream news stories’ sentiment about the project is neutral and it is yet to be listed on top exchanges. In normal circumstances, any commodity trading in any market has a price action history. In the case of PEPEBNB, there is no market chart to prove its market performance since its launch.
Pepe the Frog does not have a CoinGecko profile page and that is enough to raise an eyebrow among some of the analysts and investors.
The volatile nature of the crypto industry can result in sharp and abrupt moves in prices. In cases of severe price drops, some of the new cryptos that have limited liquidity end up failing. With the crypto space currently unregulated by central banks and governments, if an investor loses money they are not protected.
We buy together the dips.
Comfy hodl.$PEPE #PEPEBNB pic.twitter.com/DMXXJuJfNE
— Pepe BNB Official Token (@BNBPepe) May 15, 2023
With all those factors highlighted above, investors are advised to proceed carefully when investing in the Pepe the Frog token. For now, it has not been declared as a scam. But, it needs to implement several measures to enhance its legitimacy and attract more investors to grow its ecosystem.