The latest memecoin frenzy is indicative of shifting attitudes within the crypto area, in line with CoinShares chief technique officer Meltem Demirors.
In a brand new interview on Crypto Banter, Demirors brings up PEPE, a unstable new token impressed by the controversial “Pepe the Frog” memes.
“Pepe and this complete frog coin phenomenon, I’m not endorsing it in any method, I’m not taking part in it in any method, however I do suppose it’s fascinating to see how a lot dialog it’s spurred and the way a lot it shifted sentiment even in among the teams and communities I’m in. Individuals obtained actually excited, I’m seeing a number of ‘Oh child, we’re again.’”
Demirors notes that crypto traders have been far more snug with publicity to Bitcoin (BTC) and Ethereum (ETH) within the fourth quarter of 2022 and the primary quarter of 2023 as a result of they’re lower-risk digital belongings.
The latest PEPE frenzy, nonetheless, signifies that momentum may very well be shifting, in line with the CoinShares government.
“Now persons are speaking about these long-tail cash, persons are making an attempt to determine what [they] need to have publicity to as we go into Q3/This autumn. And once more, we are able to’t overlook, we’re going into one other Bitcoin halving cycle. Now, once more, historical past doesn’t repeat, but it surely does rhyme, and I feel if we take a look at the sample during the last three Bitcoin halvings, if we observe an analogous sample this time, we have now much more knowledge about this historical past of crypto, its worth habits over time, its worth habits in these completely different provide/demand environments, and so I do I feel it’s necessary to have a look at.
I do suppose we’ll see extra money staying inside the crypto area seeking to transfer additional out on the danger curve as individuals see the chance to generate returns. So to me, Pepe is a superb indicator that no less than individuals inside the crypto area are feeling extra snug with threat.”
Traditionally, new crypto memecoins are inclined to show excessive volatility and may endure from excessive concentrations of wealth and elevated dangers of pump-and-dump worth crashes.
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