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PEPE rallies over 2,000% in two days.
The Airdrop further propelled the meme coin. Decline ahead?
What is Pepe all about?
YEREVAN (CoinChapter.com) – Pepe token, the new meme coin on the block, surged a whopping 2,000% since April 17 and changed hands at $0.0000002838 in the European session on April 19.
Pepe Coin price. Source: dextools.io
The 2005 cartoon character Pepe became Twitter’s most “meme-able meme coin,” starting a FOMO frenzy among crypto investors. Moreover, the team announced an Airdrop on April 18, tagging Elon Musk in the description, along with several other meme coins, Ethereum layer-2 Optimism, and Avalanche token AVAX.
The Airdrop went live, spurring the PEPE price surge and continuously repeating that the “dog days are over.” The team also blocked replies to the latest tweet, providing the link to check for Airdrop eligibility.
Also read: PEPE token surges 350% and announces Airdrop.
A decline ahead for PEPE?
Generally, Airdrops are a bad predictor of price appreciation, especially when it comes to meme coins. The “buy the rumor, sell the news” phenomenon often pumps hyped-up crypto tokens in price, which collapses right after the Airdrop.
For example, when the Internet Computer Token (ICP) first hit the market in May 2021, the price per token peaked at $2,800. However, once traders decided to unload their ICP at a pumped-up price, the value sharply declined to $380 and has stayed below the said level ever since.
Stellar (XLM) token, noted as one of the largest crypto Airdrops at the time, hit the market at approximately $0.3 on May 31, 2020. However, the token price nearly halved the following month and hit the local bottom of $0.17 on June 28. Ethereum layer-2 chain Arbitrum’s much-anticipated ARB airdrop also led to price depreciation.
Also read: Injective Partners With Tencent, But INJ Price Drops Over 14%.
Thus, regarding crypto Airdrops, early investor loyalty is not a given. The dropping trading volumes on the chart above also testify to a looming decline.
Does the Pepe coin have political roots?
The coin seems to have no connection to Matt Furie, the original creator of the 2005 cartoon character. Moreover, the memes posted by the Pepe Meme coin team are more leaning towards another historical usage of the Pepe character that Furie himself found unlawful.
As early as 2015, anonymous internet trolls created a number of Pepe variants, associating the character with the alt-right movement. Some of the variants produced by this had Nazi Germany, Ku Klux Klan, or white power skinhead themes.
During the 2016 United States presidential election, the meme was connected to Donald Trump’s campaign. In October 2015, Trump retweeted a Pepe representation of himself, associated with a video called “You Can’t Stump the Trump (Volume 4)”. The latest tweets also feature PEPE in a “Make Pepe great again” cap, which is a direct reference to Trump.
However, the team has not claimed any affiliation, which might have sparked even more speculation. The coming sessions will show how Pepe Airdrop affects the coin price. As of April 18, the meme coin stood at an over 350% advance in the previous 24 hours.
ALso read: Putin’s Controversial Visit to Occupied Ukraine Regions Sparks Outrage in Kyiv and West.
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