According to CoinShares senior strategy officer Meltem Demirors, the recent memecoin rush is indicative of a shift in attitudes in the crypto space. Demirors discusses PEPE, a new volatile coin inspired by the famous “Pepe the Frog” meme, in a new interview on Crypto Banter.
“I do not support or participate in the frog coin phenomenon in any way, but I found it very interesting to see how much conversation was sparked and how much sentiment shifted even in some of the groups and communities I was a part of. .” People get so happy, and I often hear ‘Oh baby, we’re back.’”
Demirors argues that because Bitcoin (BTC) and Ethereum (ETH) are low-risk digital assets, crypto investors are much more comfortable with their exposure in the fourth quarter of 2022 and first quarter of 2023. According to the CEO of CoinShares, the current PEPE craze suggests that momentum may be changing. .
“Now that we’re going into Q3/Q4, people are talking about these long tail coins and trying to figure out what they want to know.” And let’s not forget that we are about to enter another Bitcoin halving cycle. Again, history does not repeat itself, but rhythmically, and I believe that if we look at the pattern during the last three Bitcoin halvings, and if we follow the same pattern this time, we will have a lot more data about crypto history, its price behavior over time over time, its price behavior in these different supply/ask environments, so I believe this is important to look at.
As people realize the ability to generate returns, more money will remain in the crypto area, looking to move further up the risk curve. So, to me, Pepe is a great indicator that, at the very least, individuals in the cryptocurrency sector are becoming more comfortable with risk.”
Historically, new crypto meme coins have experienced tremendous volatility, a high concentration of wealth, and an increased likelihood of a pump-and-dump crash.