As the Virtual Asset Market Revives, Meme Coins Also 'Soar'... Investment Caution Advised Amid Sharp Volatility

3rd Generation Meme Coin PepeCoin Surges 38% in a Week
Other Meme Coins Like Dogecoin Also on the Rise
'GROK' Soars Over 1000% but Price Plummets

As the market revives with the representative virtual asset Bitcoin recovering its price from April last year, meme coins (photos or videos trending on the internet) are also showing volatility.

According to the global virtual asset market tracking site CoinMarketCap, as of 4:02 PM on the 7th, the price of Pepe Coin was trading at $0.0000015, up 37.69% compared to a week ago. Compared to April, when price tracking began, it surged more than 2400%, but it also showed sharp volatility by falling more than 8% compared to the previous day.

Pepe Coin is a third-generation meme coin following Dogecoin and Shiba Inu. It is a virtual asset created using Pepe, a frog character used as a meme online both domestically and internationally. Recently, not only Pepe Coin but other meme coins have also been on the rise. Dogecoin’s price jumped more than 18% compared to a week ago, and Shiba Inu rose more than 17%. Dogecoin exerts influence due to its association with Elon Musk, CEO of Tesla, while Shiba Inu symbolizes the Japanese Shiba dog and emerged as a satire of the virtual asset craze including Dogecoin.

The reason for the rising prices appears to be the revival of speculative sentiment as the virtual asset market recovers. Meme coins have high price volatility due to 'speculative factors' where prices fluctuate based on fun and trends rather than concrete utility. Additionally, there is a risk of scams where holders sell off their holdings after driving up the price. It is interpreted that investors buy coins exploiting the volatility and then sell when attention causes the price to rise.

Some meme coins that rise due to concentrated interest but fail to maintain strength are emerging, requiring investor caution. 'GROK,' named after the AI chatbot developed by Elon Musk’s AI startup xAI, once surged over 1000%. On its launch day, before CoinMarketCap started tracking its price, it traded at $0.0019 and soared to $0.024 on the 13th of last month. It then plunged to $0.004, surged again to $0.029, but subsequently weakened, falling to $0.013, showing sharp volatility.

This content was produced with the assistance of AI translation services.