The $PEPE Investment Thesis: Buy Now, Research Later. #19
The $PEPE Investment Thesis: Buy Now, Research Later. #19
This meme coin has put to shame thousands of crypto researchers, developers and traders with "sophisticated" tools, blockchains and trade strategies.
Ask yourself, what are people more likely to buy:
A meme coin known around the world by millions with no technical knowledge required, no use case, all for a good laugh
An altcoin with a sophisticated use case no one understands and developers that can’t market it
The winner is obvious and in these past few weeks $PEPE just proved it. Its market capitalization reached over $1 billion and it got listed on the largest exchange in the world - Binance.
All this in less than 30 days. People were floored. But a question remains.
Should you buy it?
Keep reading. This issue covers $PEPE, new crypto narratives and Bitcoin.
This newsletter is sponsored by AmazeWallet, a third generation blockchain!
Traders with decades of experience were overtaken by a random buyer that got $25 worth of $PEPE in mid-April. That same buyer, sold two weeks later and booked a $10 million profit. They can now retire for the rest of their life.
This is only possible in crypto.
This begs a question, is hard work worth it?
Hundreds of research hours to find the best altcoins
Thousands of developer hours building “the next” blockchain
Spending countless hours watching charts as a trader
Yet, $PEPE overtook 99% of all altcoins in less than a month and even put ApeCoin to shame which is backed by the biggest NFT/meme company of them all, Yuga Lab.
The best risk / reward approach in crypto appears to favor a different investment strategy. I call it…
Buy Now, Research Later
Your only “due diligence” should be the opening lines of this newsletter plus these basic questions, is it:
easy to understand?
easy to scale?
easy to buy?
Lastly. Does it make you laugh? Is it… EMOTIONAL?
If your answer is yes to all of the above, it’s time to buy now and ask questions later. Because if you ask too many questions you are… thinking too much.
This is an EMOTIONAL buy. The disclaimer on $PEPE’s page gives you plenty of reasons not to do so. But we are not interested in being a rational thinker here. Right?
Having said that, there is a use case for rationality. That is, trying to find the answer to our next question.
Should you buy it… now?
A good question. But one that stopped many to become millionaires in the past few weeks. When irrationality is involved being late does not matter. Nevertheless, I have to provide you with some guidance.
Short answer: You missed the party. Long answer below.
From a technical perspective the current $PEPE Elliot Wave impulse up has been completed (see wave 5). We had a blow-off top and the price crashed over 60% from its current all-time high (ATH).
Nevertheless, $PEPE can still pump once it finds support. But another 100x won’t be possible. This is because $PEPE has a $1 billion market capitalization now. Coins at such a valuation cannot pump that much as they require exponentially more money the higher they go.
You can’t compare $PEPE today with $PEPE from two weeks ago when it had a $50 million market capitalization. It was easy to pump then. Now not so much.
In my view, if you manage to double your money on this meme coin in the near future you should consider yourself lucky. Don’t be greedy. The main act has passed and you’re in the afterparty now. These are not the same and the afterparty may turn into a run to the exit event pretty fast.
When I speak of support, look at the above chart and check the Fibonacci levels at 61.80% and 78.60%. If the first wont hold, seek an entry one level below. Your money, your call. This is not financial advice.
WARNING: The only reason to buy $PEPE is because you are greedy. That’s it. Whatever money you want to drop on this meme coin, know that it can be totally lost. $PEPE has no use case and is hype based.
Why narratives matter
$PEPE has shown us that once a narrative in crypto finds a good footing it can run very fast and reach levels of irrationality that can’t be explained. This is why you always keep some money for new narratives which have a good potential.
Getting in early and booking that 10x or even 100x can be life changing. Ride the narrative until FOMO starts and then start taking profit as the price moves higher and higher. Then don’t FOMO again, book your profit and don’t look back.
If you are confused, read my previous newsletter linked below. Speaking of new narratives, I see one emerging right now. Keep reading.
It’s about Bitcoin.
Decentralized Finance and inscriptions on Bitcoin have exploded. This in turn has led to some mind-blowing effects. Fees now account for 15% of miners rewards.
This has never happened before at this scale and so fast. This has consequences.
Miners are incentivized even more = more miners
Network security improves = censorship resistance + decentralization go up
Users are unhappy as they have to pay $10 - $50 for a BTC transaction
But there is a not so obvious benefit. To address the concern from users, layer-2 solutions built on top of Bitcoin will explode in order to reduce transaction fees. This means more adoption for… Bitcoin. Lightning Network usage will increase, more users will join, a fly wheel reinforcing all that is good about BTC!
You can’t dismiss this and if you are not exposed to Bitcoin, you may miss the next rocket. ETH did a 50x due to its own DeFi boom between 2020-2022. Bitcoin may not do a 50x, but could it do a 10x?
Time to do some research. 🤣
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