Clones such as Pepecoin gain popularity and turn a few dollars into hundreds of thousands of dollars | CoinDesk JAPAN | Coin Desk Japan

The latest trend in the cryptocurrency market for July is betting on microcaps, purported to be the return of the popular meme coin.

Tokens such as Pepe 2.0, Floki 2.0 and Bobo 2.0, most of which were issued last week, have been disguised as new versions of popular tokens Pepecoin (PEPE), Floki (FLOKI) and Bobo (BOBO). It doesn’t matter. But it gained popularity, trading volumes skyrocketed to millions, amassing hundreds of thousands of dollars in liquidity, and turning a few dollars into six-figure wealth almost overnight.

Most of these frenzy won’t last more than a few weeks. Last year, some people betted on GRIMACE, which was inspired by an English article and a McDonald’s joke tweet.

The existence of decentralized exchanges where anyone can call a smart contract for a few cents and issue tokens on Ethereum (or any other blockchain) means that tokens are issued instantly, liquidity is supplied, and means to be traded.

As of July 4, Pepe 2.0, possibly the most popular of the clones, traded for about $7 million in 24 hours. Its market cap is $18 million, down from a peak of $45 million last week.

One wallet turned a $900 purchase of the first Pepe 2.0 into over $176,000 in less than 24 hours. According to the analysis, this wallet will, as the token rises,sell and make a profit.

On-chain analytics tool Bubblemaps points to the concentrated behavior of some early buyers who seem to have monopolized most of Pepe 2.0’s supply at launch and are gradually selling off the token. Such behavior may have contributed to the large price hikes amid a significant decline in buying demand and sales from early buyers.

UPDATE: the whale 0x181d continues to sell #PEPE2

This wallet is directly connected to the deployer, along with those wallets:

▸ 0x8c25
▸ 0x4e20
▸ 0xac8c

Watch them closely https://t.co/PqB3c9uE6D pic.twitter.com/zkF9GQuD72

—Bubblemaps (@bubblemaps) July 3, 2023

Pepecoin (PEPE) continues to attract investors, with some big buys boosting profits that have risen nearly 80% over the past two weeks.

According to Lookonchain data, two wallets were released on July 3.Buy millions of tokensand a niche segment of the market is about to surpass arguably the most popular memecoins, Dogecoin (DOGE) and Shiba Inu Coin (SHIB).betting on frog-themed tokens.

｜Translation: CoinDesk JAPAN
｜Editing: Toshihiko Inoue
| Image: Danny Nelson/CoinDesk
｜Original: Pepecoin Knockoffs Turn Dollars to Fortunes in Strange New ‘2.0’ Play