The main reasons that attract new traders and small traders to cryptocurrency than any other:
1. 💰 The illusion of easy opportunity and super gains:
The biggest motivation for new traders is the illusion of quick wealth:
Very low prices (many zeros): #pepe⚡ is traded at very negligible prices (many zeros after the decimal). A novice trader believes that moving the price even to break one zero means achieving huge gains (multiplying capital 10 times or more) with a small investment.
Reality:
Achieving a massive rise in a coin with a large market cap (even if its price is low) requires a huge liquidity influx from "whales" (large investors), which happens rarely and unexpectedly.
Individual success stories: Stories spread about people who invested a small amount (like $250) in the early days of PEPE and made millions of dollars. These stories create a fear of missing out (FOMO), driving new traders to jump in without study.
2. 📢 The power of meme and viral spread:
#PEPE✈ is a coin inspired by the famous internet frog character Pepe, giving it a marketing power that surpasses coins with serious projects:
Community attraction and humor: The currency creates a very enthusiastic community on social media, driven by humor and viral promotion, making it seem like a "phenomenon" worth sharing.
Absence of inherent utility: Unlike other currencies like $ETH that have clear technology and projects, the value of PEPE relies entirely on hype and collective sentiment. This means that the price swings dramatically based on simple news or a tweet from an influencer.
3. 📉 Extreme volatility #votallity and risks of meme coins:
Meme coins are the most volatile in the cryptocurrency market, making them a battleground for beginners:
Pump and dump schemes #Pump&Dump : Meme coins are a primary target for whales and major developers who buy large amounts at low prices (Pump), then heavily promote them to attract small traders, and when the price rises, they sell their shares immediately (Dump) at high prices, causing a rapid and immediate collapse in price and losses for small traders who bought at the peak.
Lack of fundamental analysis: The new trader buys PEPE based on "sentiment" or "trend" rather than fundamental analysis of the project (since the project usually lacks strong fundamentals), increasing the likelihood of a crash at the first price drop.
4. 📈 Listing on major platforms:
The listing of PEPE on giant trading platforms like Binance gave it credibility and false legitimacy in the eyes of beginners:
- 1. 💰 The illusion of easy opportunity and super gains:
Expectation of continued rise: The new trader sees the listing as a guarantee for continued rise, while the price has often already peaked before or during the listing and then begins to decline.
PEPE0.0₅437-8.38%
ETHUSDTPerp3,009.75-3.99%