The Frog has become ubiquitous in crypto this past month.
And some investors have gotten seriously rich off pumping and dumping memecoins.
But today we’re going to take the time to go over the pros and cons of letting altcoins like Pepe into your portfolio, and into your life.
☕️ Musk Steps Down as Twitter CEO 🐦👇
Elon Musk is resigning from his arguably ill-suited role as Twitter CEO and will be replaced by Linda Yaccarino, the current chief of advertising at NBCUniversal.
We’re still learning about Yaccarino, but crypto heads have been quick to point out that Yaccarino follows both Dogecoin and Shiba Inu on her personal Twitter. Following in Elon’s footsteps, Yaccarino may be another huge memecoin influencer.
But on the more serious side, Yaccarino appears to tout some of crypto’s key tenants, such digital transparency and open source coding.
“Transparency and open-sourcing.. I would say that’s the difference between those other platforms you either don’t use or have never heard of and Twitter,” Yaccarino prompted in an interview with Musk at the Possible marketing conference in Miami.
Though we hope Yaccarino will be a very different leader than Musk was, the first two items on her agenda as CEO involve building an underground tunnel and dating Grimes.
☕️ Binance Out of Canada 🏃♂️🍁
Binance announced plans on Friday to cease operations and pull out of Canada amid regulatory concerns.
The Binance account posted this release to their Twitter:
Unfortunately, today we are announcing that Binance will be joining other prominent crypto businesses in proactively withdrawing from the Canadian marketplace.
We would like to thank those regulators who worked with us collaboratively to address the needs of Canadian users.… https://t.co/1NiSF2OzNT
— Binance (@binance)
May 12, 2023
The most important part of that corporate jargon is the one sentence actually explaining Binance’s reasoning. “Unfortunately, new guidance related to stablecoins and investor limits provided to crypto exchanges makes the Canadian market no longer tenable for Binance at this time.”
Though of course like all the worst breakups, Binance had to leave Canada a glimmer of hope with, “We are confident that we will someday return to the market when Canadian users once again have the freedom to access a broader suite of digital assets.”
The departure of Binance will mark Canada’s greatest cultural loss until Shania Twain announces her retirement.
☕️ Ask the Feds! ❓ 🏛
Today, the U.S. Secret Service as well as the Bay Area Regional Enforcement Allied Computer Team (REACT) are holding an Ask Me Anything (AMA) on r/CryptoCurrency, the crypto subreddit.
Their intention is to provide a no-holds-barred cryptocurrency education seminar where curious users can ask them the ins and outs of their experiences with tech crimes and the current practices regarding crypto.
Knowing Reddit, we’re sure that this will be a thoughtful and respectful community event.
We’re already anticipating questions such as, “Hypothetically, if I was currently holding $1 million in stolen crypto, what would be the most difficult country to extradite me from?”
Spilling the Beans
Make Money on Memecoin Mania! 🚀 😳
Since its debut in April, Pepecoin or $PEPE has had a meteoric rise, at one point hitting a market cap of $1 billion before dropping to currently rest around $650 million.
But honestly, it’s almost pointless to tell you where Pepe’s market cap currently is, this coin is so volatile it’s liable to spike and drop forty or sixty times between when this newsletter is written and publication.
It’s been a wild ride, but what a ride it’s been.
And Pepecoin was ambitious from the start. The official Pepecoin Twitter touted it as “the most memeable memecoin in existence” as well as “dogs have had their day” prompting many skeptics would wonder if Pepecoin would finally become the Dogecoin killer.
And in truth, even with Dogecoin’s links to Elon Musk, the coin has never had activity quite like Pepe’s.
Naturally, the bravest and boldest investors wanted to hop aboard the Pepe train and risk it all.
We’re warned you of the dangers of Memecoin investments before, they’re high risk, extremely volatile, and they’re in no way tied to actual value.
But again, sometimes a shrewd investor can ride the waves of hype into absolute fortunes.
It’s sort of like… we’re all surfing, but the hardline Pepe investors are those guys from Riding Giants, that documentary about the thrill-seekers who ride those fifty-foot waves off the coast of Hawaii and Portugal.
We’re all playing the same sport, but when it comes to that stuff, we’re just happy to wave from the beach and cheer them on. We don’t want to do what you do. We have wives and kids at home.
People who depend on us.
Anyway, even if we can’t seriously advise anyone to put large sums of cash into altcoins, it’s fun to examine psychos who did.
One investor, for instance, bought a measly .125 ETH worth of Pepecoin. At the time that was equivalent to about $250.
And just to make it abundantly clear that these memecoins are worthless, each one of these coins trades for fractions of fractions of a cent. For $250, this user was able to purchase 5.9 trillion PEPE tokens.
But they rode that $250 worth of memecoin all the way through Pepe’s wild April and May run. And by April that Pepecoin was worth $1.8 million.
And yes, that’s an insane run and for most, a life changing amount of money.
But then the issue is that you do have $1.8 million… but in a memecoin.
You’re going to have a hard time selling off your hoard, when memecoins like PEPE have such low liquidity.
It’s like owning $1.8 million worth of banana slugs.
Yes, you could do that. But why would you?
You’d have a hard time acquiring that many banana slugs, let alone getting anyone to buy them off you.
And we’re not saying that people haven’t made some nice chunks of change off the Pepe bull run.
We’ve seen a certain amount of traders who were able to trade their Pepe in for ETH, a valuable, widely used cryptocurrency with actual utility.
But those traders seemed to be the exception more than the rule.
So, yes, you can get rich off memecoins
But it will be a cursed life. A half life.
And like Voldemort or King Midas, you will have power, but it will be useless without love.
Meme of the Day
Don't you just LOVE memecoin season? 🙄
"Wow. That's great. I'm so happy for you." https://t.co/BHI7kuMf33
— Coffee & Crypto Daily (@GetCoffeeCrypto)
May 15, 2023
Liquidity: This refers to how quickly and easily a token can be bought or sold without causing significant price changes.
Low liquidity means the token cannot be bought or sold in large amounts without impacting its price, leading to potential volatility.
High liquidity means that the token can be traded in large quantities without significantly affecting its price, indicating market stability.
The Last Sip
Here are some more thoughtful questions we already anticipate the users asking at the Secret Service/REACT Reddit AMA.
“Could you read back to me the last three items on my browser history?”
“Would you be so kind as to airdrop the Benghazi emails?”
“Where are you hiding Barack Obama’s birth certificate?"
Coffee & Crypto Team
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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.