Pepe, the meme-inspired cryptocurrency that gained popularity swiftly, may be a concerning sign for Bitcoin, the most popular cryptocurrency, according to Bloomberg.
The Pepe token’s quick boom-and-bust cycle, which was mostly fueled by investors’ FOMO, has had a visible effect on the cryptocurrency market and may have contributed to the recent decline in Bitcoin’s value.
The Texas State Securities Board’s Joe Rotunda, the director of the enforcement section, has issued a warning regarding the possible dangers associated with volatile digital assets like Pepe token. When the music stops, investors usually find it difficult to find a stable position, which is how Rotunda compared cryptocurrency investment to the game of musical chairs.
As soon as the initial excitement surrounding such tokens fades, their value may fall, leaving investors to deal with potentially substantial losses.
With Bitcoin’s price falling, these worries are becoming increasingly real. As of the time of publication, it has a price on the Bitstamp market of $27,431, with a 0.1% growth over the last 24 hours. The much-desired $30,000 mark is still distant from being reclaimed by the leading cryptocurrency.
This decline in the price of Bitcoin may be a direct result of the speculative mania around brand-new cryptocurrencies like Pepe.
This latest development highlights the high-risk, high-reward aspect of investing in cryptocurrencies, especially those that ride the tide of online fads and memes.
