Pepe is back in the game after a token burn that saw 6.9 trillion $PEPE coins move permanently out of circulation. The newfound energy in the market led by Bitcoin’s 21.92% surge to $35K also fuelled the pump.
The frog-themed meme coin has climbed 31.95% on the daily chart and 92.56% on the weekly chart. Meme Kombat has also stolen the spotlight this week, crossing the $700K mark in its presale.
Pepe 7-day price action, CoinMarketCap
What you'll learn 👉
Token Burn After Concerns Over Unexpected Transfers
Pepe was forced to initiate a token burn after concerns were raised over the team’s multi-sig holdings.
“Since its inception, $PEPE has unfortunately been plagued by inner strife with a portion of the team being bad actors led by big egos and greed. They blocked team progress on making donations or purchases with multi-sig tokens due to inability to make signatures, disagreements, and being unavailable to contact for weeks at a time. Yesterday these 3 ex-team members came back behind my back, logged onto the multi-sig, stole 16 Trillion/ 60% of the 26 trillion multi-sig tokens, and sent them to exchanges to sale,” noted a team member in a tweet on the official page of Pepe in August.
Through burning, tokens are permanently moved out of supply as they are sent to an address without any owner. The action quells the concerns of the multi-sig wallet holdings.
After burning, the number of tokens held by the team is brought down to 3.79 trillion PEPE, a tiny portion of the total supply. The meme coin is selling for $0.000001212 now. Even if the team’s share were to be sold, that wouldn’t have much impact on the price action as the 24-hour trading volume of Pepe stands at $453M.
6.9T $PEPE Tokens worth ~$6,000,000 have been burned. https://t.co/aN5LRUFz8u— Pepe (@pepecoineth) October 24, 2023
A new team of advisors have been brought on to guide Pepe forward. Uses for the remaining 3.79T tokens attributed to the original team CEX multi-sig wallet for strategic partnerships and marketing… pic.twitter.com/JN3ssvH0XL
Since the burnt tokens amount to 1.6% of Pepe’s supply, it led to a massive price action across the meme coin market. Interestingly, it paralleled Bitcoin’s rally to $35K. The crypto market is going through a period of optimism in general with the ongoing developments around the approval of a spot Bitcoin exchange-traded fund (ETF).
Inspired by the broader market trends, the meme coin market is back in action. Assets like Dogecoin and Shiba Inu have also surged during the last few days, while new meme coins like Meme Kombat are anticipating a Pepe-like surge.
Can Pepe Maintain the Momentum?
According to analysts, Pepe will continue to rise throughout the week, despite minor downtrends. The retail investor demand for Pepe is growing as the pump dominated social media platforms and made headlines.
But can Pepe maintain its momentum?
That remains to be seen. While the recent token burn goes on to prove the team’s commitment and accountability, Pepe can’t make the journey ahead without anything substantial to support its value.
Utility and partnerships are key when it comes to the long-term relevance and sustainability of a digital asset. As of now, Pepe’s demand is limited to speculative traders, driven by social media buzz.
While meme coins like Dogecoin and Shiba Inu went on to integrate use cases in later stages, a similar approach would rock the foundation of Pepe.
According to the website, “$PEPE is a meme coin with no intrinsic value or expectation of financial return. There is no formal team or roadmap. the coin is completely useless and for entertainment purposes only”.
The daring attempt went on to grab massive attention for Pepe in its early days, helping it pump 5000% at one point. But long-term reliance on volatility and social media hype will prove to be lethal for Pepe. In fact, the token has been dead for a long time after it hit an all-time high in May.
Pepe’s durability beyond 2023 is questionable unless the team explores new partnerships and use cases.
Meme Coin Investors Are Stocking Up On $MK
Meme Kombat is a new meme coin powered by play-to-earn and GambleFi utilities. That is likely the reason Pepe investors are buying $MK tokens alongside for diversification.
The project caters to both active and passive users by hosting an arena for AI-generated meme battles. The combination of gripping gaming mechanics with passive staking rewards (112% APY) is designed as a strategy to ensure the long-term sustainability of the project.
Meme Kombat is at its core a play-to-earn meme coin that combines GambleFi, AI, and passive income. With AI-generated meme battles, Meme Kombat positions itself as a front-runner in the GambleFi revolution that is gaining pace.
While GambleFi is now largely limited to casinos and sportsbooks, Meme Kombat opens a new dimension with meme-themed virtual combats.
Now in the presale stage, $MK is moving toward an early sell-out and token launch after witnessing massive traffic. The demand for the token has been especially high over the last few days, kindled by the revival of the crypto market. Being in its early phases of development, the meme coin has larger room for growth than its competitors like Pepe, Shiba Inu, and Dogecoin.
Led by Matt Whiteman, Meme Kombat is a doxxed project, unlike most of the meme coin market.
The launch of Meme Kombat Season 1 is scheduled soon after the token launch to fuel the initial price action. According to analyst Jacob Bury, the meme coin is poised for a tenfold increase in value upon its launch.
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