I am using PEPE as an example, but the idea applies generally to any #memecoin

In every crypto market bull cycle, some coins appear out of nowhere, rise hundreds or thousands of percent, and then disappear as quickly as they appeared.

#PEPE is a clear example of this phenomenon.

She does not promise innovative technology, does not solve any problems, and does not try to sell herself as infrastructure. Still, she attracts attention, volume, and speculation.
To understand PEPE, it is necessary to first understand what meme coins are — and why they should not be confused with traditional crypto investments.

What is a meme coin

A meme coin is a cryptocurrency created mainly from:

  • internet memes

  • digital culture

  • humor or irony

  • social narrative

It does not start with relevant technical utility.
In general, there is no:

  • technological innovation

  • clear practical application

  • long-term proposal

The value of a meme coin comes almost exclusively from:

attention, narrative, and collective behavior

This is not a hidden defect.
It is the nature of the asset.

What is PEPE

PEPE is a meme coin inspired by the meme “Pepe the Frog”.
It does not try to be:

  • own blockchain

  • DeFi solution

  • market infrastructure

It exists as:

purely speculative asset, driven by hype, viralization, and attention cycles.

There is no relevant technical roadmap.
There is no practical utility.
And this is not a secret — it is part of the concept.

Cryptos “useful” vs meme coins: the real difference

It is important to separate two worlds that many people mix.

Cryptos with utility

Typical examples:

  • blockchains (Ethereum, Solana)

  • infrastructure (oracles, computing, networks)

  • financial protocols

These assets:

  • they have real use

  • grow with adoption

  • have technical fundamentals

The price can fall, but there is something being built.

Meme coins

Meme coins:

  • do not solve problems

  • do not depend on technical adoption

  • do not need to “work”

They depend on:

  • narrative

  • community

  • viralization

  • speculative flow

Price and fundamentals are not connected, because the fundamentals are nonexistent.

So why do meme coins rise?

Because markets are not driven only by technical logic.
They are also driven by:

  • emotion

  • greed

  • FOMO

  • herd behavior

Meme coins work like:

attention assets

When the attention comes in:

  • liquidity increases

  • price explodes

When attention goes out:

  • dry liquidity

  • price collapses

This cycle repeats.

PEPE as a speculative asset

PEPE should not be analyzed as:

  • investment

  • store of value

  • long-term project

It should be seen as:

ultra-high-risk speculative trading instrument

This completely changes the way to deal with the asset.

“Is it worth it?” — the honest answer

As fundamentals?

No.

There is no:

  • technical thesis

  • competitive advantage

  • value building

Those who buy thinking of “holding for years” are betting only on future narrative, not on fundamentals.

As speculative trade?

It can make sense — with great care.

Assets like PEPE often offer:

  • explosive movements

  • high volatility

  • short and intense opportunities

For those who understand:

  • timing

  • risk management

  • liquidity

it is possible to extract profit.

But this is not investment.
It is conscious speculation.

The biggest mistake of beginners with meme coins

The mistake is not to operate meme coins.
The mistake is:

  • confuse trade with investment

  • use capital that cannot be lost

  • believe that “this time is different”

  • ignore risk management

Meme coins do not give a second chance.
Those who hold waiting for fundamentals usually become exit liquidity.

How experienced traders deal with assets like PEPE

Those who operate this type of asset usually:

  • use small position

  • accept quick stop

  • do not cling to the narrative

  • exit without hesitation

The logic is simple:

enter for volatility, exit for liquidity

There is no emotional commitment.

Why meme coins always come back in cycles of highs

Because:

  • euphoric markets seek risk

  • traders seek quick multiplication

  • attention migrates to extremes

Meme coins are the thermometer of euphoria.

When they start to dominate the discourse, usually:

  • systemic risk increases

  • the speculative phase of the cycle intensifies

This does not mean that it is not possible to make money.
It means that the environment becomes more dangerous.

In simple terms

The PEPE:

  • it has no utility

  • it has no fundamentals

  • it has no technical proposal

But:

  • it has volatility

  • it has liquidity at specific moments

  • it has potential for rapid movements

Those who understand this:

  • treat as trade

  • limits risk

  • does not romanticize gains

Those who ignore:

  • confuses speculation with investment

  • and usually pays dearly for the lesson.

The more mature view

Meme coins like PEPE are not good or bad.
They are what they are.

The problem is not in the asset.
It is in the wrong expectation.

If you understand that:

  • it is a game of attention

  • of short duration

  • of high risk

so you know exactly when to enter, when to exit, and how much to risk.

Without this, meme coin ceases to be an opportunity —
and becomes announced loss

Operating Memes

First of all, it is important to make it clear:
traders do not operate meme coins like they operate Bitcoin, Ethereum, or infrastructure projects.
The logic is completely different.

Meme coin is treated as:

temporary attention and liquidity asset

This changes everything: entry, exit, position size, and expectation.

1️⃣ Traders enter for liquidity, not for belief

The first filter is not “is the project good?”, but rather:

  • does it have volume?

  • does it have enough liquidity to enter and exit?

  • is it attracting market attention?

Meme coins are only interesting when:

  • appear at the top of volume

  • are being commented on

  • attract new flow

Without attention, there is no trade.

2️⃣ Always small position (even when it seems obvious)

A common mistake is to think:

“since it is a meme coin, I will allocate little care”

In practice, traders do the opposite:

  • small position

  • clearly defined risk

  • acceptable loss from the beginning

Typical example:

  • 1% to 3% of total capital

  • never a position that “hurts” if it turns to dust

Because meme coin can turn to dust without warning.

3️⃣ Technical entry, not emotional

Even in meme coins, traders:

  • avoid buying the top of euphoria

  • look for pullbacks

  • enter after short consolidations

  • use breakouts with real liquidity

Those who buy just because:

  • “it is rising”

  • “everyone is talking”

usually buys the exit liquidity.

4️⃣ Stops are non-negotiable

In meme coins:

  • there is no “I will hold”

  • there is no “let's see what happens”

  • there is no “it will come back”

Stop is:

  • quick

  • technical

  • accepted without discussion

Those who do not accept stop in meme coin:

you are not trading, you are cheering.

5️⃣ Exit is more important than entry

Traders do not try to “catch the top”.

They:

  • partially realize

  • sell on impulses

  • reduce position as hype grows

Unwritten rule:

the more people talking about the asset, the closer to exit you should be.

6️⃣ No leverage (or almost none)

Leverage in meme coin:

  • increases exponential risk

  • merges volatility + liquidation

  • destroys small accounts quickly

Most experienced traders:

  • it operates spot

  • or minimal leverage, when very experienced

Meme coin is already high risk without leverage.

PEPE vs other meme coins: what really changes

Using PEPE as an example helps, but the behavior is almost always the same in meme coins.

What changes is not the logic — it is the level of attention.

PEPE

  • Strong cultural appeal

  • Noisy community

  • Rapid explosions of volume

  • Violent movements

Good for:

  • short trades

  • moments of intense hype

Bad for:

  • hold

  • build position

  • think long term

DOGE

  • Older meme

  • More recognition

  • Lower volatility (comparatively)

Works more like:

  • thermometer of euphoria

  • less extreme speculative asset

SHIB

  • Hybrid narrative (meme + ecosystem)

  • Large community

  • Still highly speculative

Usually has:

  • longer cycles

  • less abrupt movements than PEPE

New meme coins

  • Maximum risk

  • High multiplication potential

  • High chance of disappearing

Here the trade is:

  • quick

  • small

  • without attachment

What all meme coins have in common

Regardless of the name, they all share:

  • absence of technical fundamentals

  • total dependence on narrative

  • short attention cycles

  • high capital destruction rate for beginners

The chart rises before the explanation
and falls before justification.

When meme coins become opportunities (and when they become traps)

They can become opportunities when:

  • the market is euphoric

  • liquidity is coming in

  • there is real volume

  • you enter early and exit quickly

They become traps when:

  • they are already everywhere

  • influencers start to “explain the project”

  • long-term narratives emerge

  • beginners start to hold

This is usually the psychological top.

How to use meme coins without destroying yourself

The right mindset is simple:

  • treat it as trade, not investment

  • accept that you can lose everything allocated

  • use little capital

  • exit without attachment

  • do not try to “be right”

Meme coin does not reward conviction,
rewards discipline and detachment.

Final message (without romanticizing)

PEPE was the example.
But all this applies to any meme coin.

They:

  • are not useless for trade

  • are useless as fundamentals

Those who understand this:

  • sometimes profits

  • often misses out

  • almost never breaks

Those who ignore:

  • confuses hype with value

  • turns speculation into belief

  • becomes silent market statistics

Meme coins are not the problem.
Wrong expectation is