PEPE. A frog-themed memecoin. Up over 40% in a day. Trading volumes surging. Are we serious? Seriously considering this a market signal? That's what I want to discuss.

FOMO Fueling a Froggy Frenzy?

Let's be blunt. PEPE’s pump definitely has nothing to do with new technology or revolutionary use cases. It's about market psychology, plain and simple. We are discussing herd behavior supercharged by the digital age. The “fear of missing out” – FOMO – is the most potent drug known to man, particularly in crypto. You see a green candle, you hear whispers of "next big thing," and suddenly, rational thought takes a backseat to the primal urge to get in on the action.

Think about it. Remember the dot-com bubble? Pets.com? People started investing in air, throwing money at anything with a .com at the end without any consideration for viable business models or long-term sustainability. PEPE, MOODENG, MOG… they’re the Pets.com of this cycle. They're fueled by hype and speculation, not substance.

And how about all of those “analysts” who cited Ether’s outperformance and soaring volatility as proof of an imminent “altcoin season”? Sure, ETH DVOL is up. But correlation doesn't equal causation. It’s an absurd assumption to believe that higher ice cream sales lead to an increase in shark attacks. Both trends just happen to be more prevalent during the summer months.

Fundamentals Fading Into Froggy Fog?

Let's talk fundamentals. What are PEPE's fundamentals? A funny meme? A vague promise of community? Now compare that to Bitcoin’s decentralized, secure, hard capped supply. Or even Ether's evolving ecosystem and smart contract capabilities (though I still have my reservations about the long-term impact of the Pectra upgrade).

Steak ‘n Shake accepting BTC is more important than any memecoin pump. That’s real-world adoption, and it’s another step towards legitimizing crypto in the eyes of consumers and businesses as a real, doable type of payment. T-Rex raising $17 million for Web3 entertainment and Coinbase potentially acquiring Deribit for billions – these are real investments in the future of the industry.

PEPE? It’s a gamble, a lottery ticket. And, just as with most lottery tickets, it has no chance of winning and will soon be crumpled up in the trash.

Risk Real, Rewards Illusory?

Chasing all the alts pump and dumps is just a game of musical chairs. The music ceases and somebody’s going to be left standing without a chair. In this scenario, liquidity plays the role of the “seat.” When the music stops on PEPE, it will be the average retail investor with little understanding of what’s going on that leaves holding the bag.

In addition to rug pulls, market manipulation poses threats to investors during altcoin season. Whales aren’t responsible for throwing out their bags, screwing over naïve retail investors. Token unlocks are set to upend business as usual! Movement, Solayer, Aptos, WhiteBIT Coin, Starknet … All poised within days of being released to saturate the market with new tokens and dilute value, bringing in sell-off pressure.

Being the first roundtable of its kind, this one was a clear reminder that regulators are watching. These aren’t going to catch every scam, but they sure as hell can make things more difficult for scammers and fraudsters. This can make it more difficult for scammers to scam.

Be cautious. Be skeptical. Do your own research. Don't let FOMO cloud your judgment. And when in doubt, remember the golden rule—if it sounds too good to be true, it most likely is. PEPE's pump might be fun while it lasts, but it's not a market signal. It’s a trap, siren song, a mirage, a fleeting illusion that will one day probably leave you high and dry. Trade responsibly.