Among the numerous new meme coins that are launched each year, very few make it into the mainstream. So, in a crowded field, Pepe ($PEPE) is an anomaly. The relatively unknown frog-themed token made headlines in May after a meteoric price surge saw its value soar by over 2000% in less than two weeks.
But between Thursday and Friday, Pepe suffered one of its biggest price falls in months, dropping almost 30% overnight. This comes amid fears that there could be a “rug pull” that has caused investors to switch to alternative meme coins.
Let’s take a look at what’s behind the Pepe price drop and support three other token traders instead.
Changes to Pepe team’s wallet raise alarm as investors fear ‘rug pull’
Pepe’s price drop appears to have been triggered by a series of suspicious transactions related to the project’s multi-signature wallet.
Late Thursday evening, the official Pepe team wallet transferred more than 60% of its tokens to multiple crypto exchanges. In total, the amount transferred by Pepe was worth around $15.5 million at the time, accounting for around 4% of the total cryptocurrency supply.
Adding to investor concerns, changes were made to the Pepe team’s multi-signature wallet shortly after the transfer of 16 trillion Pepe tokens.
Is there a reason why the PEPE multisig wallet changed the threshold to just 2/8 signatures? Seems strange, that’s not standard, is it?
Also, it seems some of these have been sent to the exchanges pic.twitter.com/1DVZIOvef8
— CryptoNoddy (@Crypto_Noddy) August 24, 2023
Previously, the wallet required five out of eight cryptographic signatures to confirm a transaction. However, late Thursday, five signatures confirmed changes that lowered the threshold, leaving only two out of eight required for wallet control.
Not surprisingly, these events triggered a major sell-off as Pepe investors feared the worst. In a memecoin market plagued by rug-pull scams, in which unscrupulous creators cash out the liquidity that underpins a token’s value, such moves are viewed with suspicion.
According to Pepe’s official website, “6.9% of the supply will be stored in a multi-signature wallet used only as a token for future centralized exchange listings, bridges and liquidity pools.”
But even if the team (or person) behind Pepe completely empties the official wallet, the token has some important safeguards against a typical rug pull, where a single actor has to control a large part of the total supply.
As one crypto trader put it, “The only holders of more than 2.5% of $PEPE are OKX and Binance, and out of the top six holders, five are exchanges.” Also, circulating supply = maximum supply. Therefore, there is minimal risk to the traditional “carpet” here. The token belongs to the community.”
Regardless of the actual price momentum caused by additional exchange liquidity, fears for Pepe’s future prompted a major sell-off.
Around 9:30 a.m. (UTC), the price of Pepe started falling. By the time the market bottomed around eight hours later, the meme coin had lost nearly 30% of its value. And while it has recovered slightly, at the time of writing, $PEPE is down about 17% in 24 hours.
While uncertainty about the project’s multi-signature wallet lingers, there will likely be traders looking to buy the pullback and profit from Pepe’s recent price drop.
As crypto analyst Sahana Kiran pointed out, Pepe’s low Relative Strength Index (RSI) suggests that the meme coin is currently oversold, a key signal traders often use when making their buying decisions.
At press time, the 4-hour RSI of $PEPE is around 27. Typically, an RSI below 30 is considered low and is used as a buy signal by many trading strategies.
Three Meme Coins dealers support Pepe
With the $PEPE market in disarray, investors are looking for the next hot meme coin. Luckily, several new tokens are showing bullish momentum – let’s take a look at them.
Wall Street memes
Wall Street Memes ($WSM) is a playfully irreverent new meme coin inspired by the subreddit r/WallStreetBeds and its total disregard for the tense world of traditional finance and investing.
When the $WSM presale launched in May, it raised a whopping $100,000 in the first 24 hours. Since then, investors have recognized the token’s potential to explode in value and have now poured over $25 million into the new coin.
The Wall Street Memes pre-sale is now in its final stages and time is running out for early investors to snap up $WSM for just $0.0337 per token.
Once the goal of $25.9 million is reached, the presale will finally close. After that, $WSM will be listed on exchanges and traded on the open market, and traders like Michael Wrubel will support a price increase.
In fact, the makers of Wall Street Memes have set a target of a $1 billion market cap. Such success would equate to a 1500% return on investment for anyone snagging the last remaining presale tokens now.
Visit Wall Street Memes
Sonic Coin
Sonik Coin ($SONIK) is another new meme coin that could skyrocket in value well past its current presale price of $0.000014 per token.
Inspired by Sonic the Hedgehog, Sonik Coin has already raised over $478,000 since pre-sales started earlier this month. (However, it is important to note that there is no official connection to the video game franchise and Sega has not endorsed $SONIK.)
While a few hundred thousand might seem tiny compared to the $25 million raised from the $WSM pre-sale, that’s because the team behind Sonik Coin opted for an initial coin offering (ICO) with shorter duration term has decided. Therefore, once the sale closes in less than two weeks, the market cap of $SONIK is expected to be a little over $2 million.
Such low-cap coins are attractive to investors because they offer a lot of room for growth. For example, consider that Dogecoin has a market cap of nearly $9 billion. Meanwhile, the total capitalization of even mid-sized memecoins like Pepe is in the hundreds of millions.
Should Sonik Coin become the next meme token to break through, a $100 million market cap would equate to a 50x return on investment for pre-sale participants.
One of the interesting aspects of Sonik is that it is a meme coin that can be earned through wagering. Nearly 17 billion tokens have been staked to date, with a stake return currently estimated at 141%.
Visit the presale for Sonik Coins
Bone Shibaswap
Bone Shibaswap (BONE) is an exciting meme coin contender that emerged from the Shiba Inu ecosystem.
Proof that meme coins actually have utility is BONE, the native gas token of the recently launched Shibarium Layer 2 blockchain. It can also be used for staking and yield farming on the Shibaswap decentralized exchange.
In a week that saw significant losses in the broader crypto market, BONE is one of the few outliers to see its price rise.
Thanks to the successful relaunch of Shibarium, which initially collapsed under the strain of a mass influx of users, BONE was one of the crypto market’s biggest gainers this week. In fact, the token surged an impressive 18% in a 24-hour period between Wednesday and Thursday.
Looking at the big picture, crypto strategist Gerhard Kuschnik has observed that the number of wallets with BONE has grown steadily over the past few months. In addition to the excitement about the new Shibarium network, this suggests that demand for BONE is likely to increase.
Coupled with the token’s maximum supply of 230,000,000, the growing demand means that BONE could see further price increases in the future.
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