Key risks of meme coins like $PEPE :
1. Centralization and control: Unlike decentralized currencies like Bitcoin, meme coins allow for control by developers, such as blocking wallets or freezing transactions.
2. High volatility: Meme coins experience high volatility due to speculation and media hype.
3. Liquidity issues: Even as the value increases, investors may have difficulty liquidating their profits due to lack of liquidity.
4. Whale effect: Large investors can greatly influence the price of the coins, exposing small investors to risks.
5. Lack of intrinsic value: Their value is based on media hype rather than on technical or practical utility, making them vulnerable to sudden collapse.
Advice for investors: Meme coins offer huge profit potential but carry high risks. Investors should be careful, and only invest amounts they can afford to lose, while focusing on transparency and decentralization in the projects they invest in.
