Nosedive of Pepe and Floki Inu Prices: The Reasons Behind It
The prices of the cryptocurrencies Pepe and Floki Inu have fallen significantly this week. Pepe, which seeks to become a leading player in the industry as a meme token, has lost almost 50% of its value compared to last week’s peak, while Floki Inu has dropped by over 28% from its high earlier this week. The decline in Pepe’s value is because it failed competition for OKX listing, and it lacks utility, so it is challenging for it to regain momentum in the long term. Historically, crypto tokens tend to surge in their early days and then decline as momentum fades, making it challenging for Pepe to regain momentum. Meanwhile, Floki Inu’s value surged after Binance US listed it but has since fallen as many previous holders exit their positions. Many of these holders have started dumping their trades for a profit. However, cryptocurrencies that jump after an exchange listing tend to be short-lived; therefore, Floki is expected to continue falling as many investors and traders take profits.
Meme coins have made headlines in recent weeks as investors anticipate a new meme season. The challenge with most meme coins is that they do not have any utility, and their value comes from the trust of the community members. However, their low liquidity makes it almost impossible to cash out quickly. Furthermore, crypto tokens tend to jump in their early days and then plunge as momentum fades, making it challenging for them to regain momentum in the long term.