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$1 Billion+ Market Cap in 20 Days: PEPE Meme Highlights Everything that is Wrong with the Cryptocurrency Industry

By DeFi Demon - CryptoX0 | Defi Demon | 17 May 2023


Meme coins are the epitome of get-rich-quick schemes

 

Find a meme, make it into a coin, and get rich.  If you're not the creator you’ll probably lose all your money.

These tokens have zero utility or real-world usage. They are just pointless tokens created to exploit desperate people like you and I. 

It happens over and over. And we keep falling for the same trap. Honestly, I’m shocked that PEPEs market cap (MC) almost hit $2 Billion in less than 30 days. This exposes the notion that people are invested in crypto for the technology as a straight-up lie. It makes the crypto market look like a joke compared to the traditional finance system, where people believe their money is safer. Compared to the meme market. It is.

Nobody cares about real-world usage, how the blockchain will change the world, break down financial divides between countries. We’re in crypto for one reason- to get-rich-quick.

And PEPE is leading the way.

The Rise of Meme Coins

Meme coins have taken the cryptocurrency world by storm. These coins, often based on internet memes, have become incredibly popular among investors looking to make quick profits. Two of the newest meme coins are Pepe and Wojak.

Pepe is a frog meme that the alt-right movement had previously adopted. Coinbase wrote about this in their newsletter and almost got cancelled. It is true. But it doesn’t mean the PEPE token has anything to do with right-wing extremists. It was a meme which has now become a meme token.

Wojak, on the other hand, is a meme that is popular among online communities like 4chan. Both coins have experienced huge gains in value in a short amount of time.

PEPE took only 20 days to reach over 1 billion in investment capital.

This token does not solve real problems. It does not have its own network or even claim to store value.

 

It claims to do nothing.

From PEPE whitepaper

PEPE Whitepaper

The rise of meme coins like Pepe and Wojak has highlighted the bigger problem with the cryptocurrency market. Governments want to create “decentralised” currencies for their respective countries, and meme coins are created to make a few rich. Nobody cares about real-world usage anymore. 

 

The days of true decentralisation are long gone as big companies eat up Bitcoin and Eth. Yes, Bitcoin is still decentralised. But if Microstrategy and the biggest centralised exchanges own most of Bitcoin, then it is no longer decentralised. 

Then we have the meme coin frenzy. 

Meme coins are not based on any real-world applications. They do not solve or even address any real-world problems. They exist solely for speculation and potential riches. 

 

The cryptocurrency market is becoming detached from reality. Investors are more interested in buying into a coin that has the potential to make them rich quickly.

If they say otherwise, they are lying.

The Flaws of Get-Rich-Quick Schemes

The problem with meme coins is that they are just one example of the broader issue of get-rich-quick schemes. People are so focused on making money quickly that they ignore the (possible) real-world applications of cryptocurrency. They also neglect to realise that the money invested has to come from someone else’s pocket. And, for someone to make a profit, someone has to lose. Steve has lost his life savings, while Jimmy has become an overnight millionaire.

 

There are always winners and losers. And you, well, you’re most likely going to be the loser.

 

The problem with this type of investing is that it is highly unsustainable and unstable. The value of these meme coins is entirely dependent on hype and social media buzz. Once the hype dies down, the value of these coins will likely plummet, leaving many investors with significant losses.

 

Instead investors must focus on coins with real-world usage and potential. Rather than being swayed by hype, FOMO and speculation.

 

If we genuinely want crypto to become the world’s reigning champion of finance. We need to stop with the games and meme coins. Otherwise, the whole market looks like a joke to onlookers.

I’m not an investment expert, I am a random guy on the internet. Please do not take anything I say as investment advice. If you listen to people online, you deserve to lose your money. Be safe out there fren don’t invest money you aren’t willing to lose.

 

This article was originally posted on Medium

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Defi Demon
Defi Demon

Defi Demon is a blog that covers all things related to decentralized finance (DeFi). DeFi has rapidly emerged as a transformative force in the world of finance, offering a wide range of decentralized financial applications and services that aim to disrupt traditional finance systems. In Defi Demon, you'll find a wealth of information on various DeFi protocols, including lending and borrowing platforms, decentralized exchanges, stablecoins, and yield farming.

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