David Gokhshtein, a well-known crypto media figure, recently shared his collection of meme coins on Twitter. Among the tokens in his collection were some of the most popular meme-based cryptocurrencies, such as Dogecoin (DOGE), Shiba Inu (SHIB), Floki Inu (FLOKI) and PEPE, which is more controversial.
While Shiba Inu and Dogecoin are relatively well understood, the same cannot be said for PEPE. Despite being a meme-based token, there is no clear correlation between the fundamentals and the technical aspects of the project. As a result, the sudden surge in popularity of the PEPE token is raising concerns within the crypto community.
What's controversial about PEPE?
The value of the PEPE token has grown exponentially in a matter of days, which is worrying due to its centralized distribution to only a few addresses. Moreover, the fact that these wallets received their tokens almost simultaneously raises questions about possible coordination. This unusual activity has caused many to question whether there has been any manipulation of the token's price.
It gained widespread attention after a trader claimed to have made millions by investing just $250 in the token. However, this story may have been carefully crafted marketing.
Overall, there is a cycle in every market phase where absurdity occurs, and oddly enough, a significant amount of money flows into it. However, investors must exercise caution when investing in such tokens as their value can fluctuate wildly, and they may not be as lucrative as they initially seem.