Intrinsic Value

Memecoins are not backed by any real asset and do not have intrinsic value. This means they do not have any underlying value that can sustain their price. Their value is purely based on speculation and market volatility.

Lack of Liquidity

This risk refers to the ability to exchange PEPE for another asset without significantly impacting its price. If PEPE's liquidity is low, it can be difficult to sell the tokens without causing a drastic drop in price. This indicates that it can be challenging to realize profits without negatively influencing the market.

Volatility

The value of memecoins is purely speculative and based on the whims of the market. Memecoins are often very volatile and can lose value quickly. This is because their prices are not based on any fundamental factors, but rather on the emotions of investors.

Anonymous Development

Memecoins are often created by anonymous developers, and there is no guarantee that they will be successful. They are typically developed by anonymous individuals who may not have the experience or competence to create a successful cryptocurrency. There is no guarantee that these projects will be successful, and investors may lose their money.

Smart Contract Risks

Bridge memecoins, like axlPEPE, have additional smart contract risks of the bridge. When a memecoin is transferred to another blockchain, a smart contract is needed to facilitate the transfer. This smart contract can be vulnerable to hacks or exploits, which can result in losses for investors.