- Meme coins have gained traction again in the past few days.
- Pepe AI, Ben, and Doge CEO prices surged on Tuesday.
- There are concerns that these new meme coins are just scams.
We are officially in a meme coin season as investors predict the start of a Federal Reserve pivot. While traditional meme coins like Dogecoin, Shiba Inu, and Dogelon Mars have lagged, others like Pepe, Pepe AI, Mrs Pepe, Doge CEO, and Ben have gained traction this month.
Meme Coin season gets underway
The first meme coin season took place in 2021 when Elon Musk endorsed Dogecoin. At the time, many developers started launching their meme coins. Some of the most notable ones were Shiba Inu, Dogelon Mars, Baby Doge, and Floki Inu. Since then, most of the meme coins have crashed while others have lost significance.
Now, it seems like the second phase of the meme season is underway. This season started in January when developers launched Bonk, a meme coin on Ethereum’s network. While Bonk price jumped in January, it has now dropped sharply from its all-time high. The volume of Bonk traded in the past 24 hours was just $2.3 million.
Recently, the number of meme coins being launched has jumped. Most of them have been inspired by the performance of Pepe whose market cap jumped to more than $1 billion during the weekend. As I wrote on Monday, Pepe’s volume was third only to Bitcoin and Ethereum. In the past 24 hours, Pepe’s volume was almost $1 billion.
Pepe is not the only meme coin making headlines. Pepe AI, which seeks to leverage the meme and AI craze, has jumped by 34% in the past 24 hours. Similarly, Doge CEO price has soared by 140% while BEN has jumped by 274%. Mrs Pepe and Diamond Pepe prices, however, have crashed by double digits.
Read more: How to buy Shiba Inu.
Are these meme coins scams?
So, what is the future of these meme coins? I believe that these meme coins are scams that will cost investors millions. For one, unlike popular cryptocurrencies like Bitcoin and Cardano, these meme coins have no utility.
History supports this view. For one, meme coins that thrived in the first meme coin season like Dogelon Mars, Baby Doge, and Safemoon are all shells of the former self. And those coins that have tried to create a thriving ecosystem have failed.
Some of these coins like Shiba Inu, Floki Inu, and Baby Doge attempted to create an ecosystem made up of DeFi and NFT ecosystems and failed.
Further, it is relatively easy to create a meme coin since most of them are based on Ethereum network. As such, this is opening the industry to bad actors who are pumping and dumping the tokens.
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