New research by AI-driven cryptocurrency investing platform SingularityDAO shows that Pepecoin investors are at risk of losing funds, as 80% of potential profits were accrued in the first week.
Meme coins have been an ever-present aspect of the crypto space; the most prominent meme coin Dogecoin is the 8th largest cryptocurrency with a market cap of $8.77 billion. And more recently, they have experienced a new wave of popularity, with Pepecoin making headlines for the huge attention it's receiving with investors.
SingularityDAO took a deep dive into Pepecoin to gain an understanding of the coin's exploding popularity and its value as an investment opportunity.
In their analysis, SingularityDAO found that Pepe’s market cap has a limited amount of net liquidity. The current state of liquidity allows for only up to 50 million of the 1.2 billion of unrealized profits to actually be realised. And with first week accrued profits making up 80% of total profits available, that is a significant amount.
Rafe Tariq, Senior Quant at SingularityDAO said about this:
The limited amount of net liquidity is creating a high stakes game of music chairs. Everyday investors are being lured in with the hopes of big profits but the reality is that a small percentage of investors will walk away with profit, while everyone else will get burnt.”
SingularityDAO also found that a small number of large-scale investors, known as "whales", hold up to approximately 25% of PEPE, while other large investors hold up 46% of the currently circulating supply. This means that a minority of investors hold a high degree of influence over the coin's price, creating an even more risky investing environment for hopeful traders.
This indicates that the majority of investors had already missed the opportunity to gain huge profits before even investing in the coin.
Rafe continued:
The data we have compiled surrounding Pepecoin highlights the speculative and risky nature of investing in meme coins. What appeared to be an exciting opportunity to make a quick buck on the surface was nothing more than false hope for the average individual. Pepecoin serves as a reminder for the importance of thorough research and caution before investing in cryptocurrencies.”
About SingularityDAO
SingularityDAO is bringing AI-powered portfolio management to the crypto space, fulfilling a similar role as hedge funds in traditional finance, but without the barriers that prevent the masses from participating. SingularityDAO also has access to the full breadth of knowledge and experience offered by SingularityNET, which within their own team of 100+ people includes numerous world famous AI scientists, including their CEO Ben Goertzel. SingularityDAO has all the pieces in place to change the face of DeFi and Cryptocurrency forever and an ethos that guides them towards inclusion for all on their road to creating a beneficial singularity.
L'investissement dans les crypto-actifs présente un risque de perte en capitale totale ou partielle. Dehfi attire l’attention des internautes sur le fait que des services et produits décrits dans le site peuvent faire l’objet de restrictions dans certains pays ou vis-à-vis de certaines personnes.
