After a successful trade idea with 
PEPE, I am updating my trading strategy with this new idea. This chart explains two things:
1) A retracement to the resistance level: Since we have reached the top of the rising channel, it would be logical for some people to take profit.
2) The potential copyright infringement liability and the possible consequences for the meme coinPEPE:
This is a real liability for this coin and the reason why I would not hold it for more than a week.
When you are investing, you want to avoid losing all your money. Buying
BTC is safe; it will not go to zero. But some cryptocurrencies will, and if you compare with 2021, many billion-dollar projects are now worth nothing.
To avoid losing everything, you have to avoid any coin that has a liability that could drive it down to zero, lead to a delisting, or result in a lawsuit.
What do we know so far?
So what can we conclude from that?
Conclusion:PEPE is a liability similar to $LUNA. It can be delisted or halted with just a notice from its author to all major exchanges. Trade with caution. Maybe it is not worth the risk? There are other meme coins that have similar growth potential but are not illegal.
PEPE, I am updating my trading strategy with this new idea. This chart explains two things:1) A retracement to the resistance level: Since we have reached the top of the rising channel, it would be logical for some people to take profit.
2) The potential copyright infringement liability and the possible consequences for the meme coin
PEPE:This is a real liability for this coin and the reason why I would not hold it for more than a week.
When you are investing, you want to avoid losing all your money. Buying
BTC is safe; it will not go to zero. But some cryptocurrencies will, and if you compare with 2021, many billion-dollar projects are now worth nothing.To avoid losing everything, you have to avoid any coin that has a liability that could drive it down to zero, lead to a delisting, or result in a lawsuit.
What do we know so far?
- Pepe the Frog is a cartoon character created by artist Matt Furie.
- The PEPE website is clear that PEPE was launched without the consent of its copyright holder.
- Matt Furie has already filed a DMCA claim against a $4 million Pepe-themed NFT collection on OpenSea, indicating he is not open to making his character public domain.
- One year ago, DailyCoin posted an article warning investors that "Pepe’s creator Matt Furie is not a fan of his character’s use in blockchain-based projects. The artist has used his copyright to go after Pepe-themed projects before."
So what can we conclude from that?
- A copyright issue is pending with the PEPE coin, which is a huge liability.
- Matt Furie could request the delisting of PEPE from all exchanges at any time, which would wreck any holder's investment to zero.
- PEPE is an obvious copyright infringement case. Although it is impossible to identify the author of the copyright infringement since they are anonymous, trading, listing, and marketing the coin is illegal.
- It would be easy to prove the copyright infringement, win, and then seek compensation from the exchanges. So why not doing it?
- It is impossible to solve the issue by giving a percentage of the PEPE supply to its original author, since it was a fair launch and all the PEPE coins have been unlocked.
- While it is certain that with such success and capitalization, the matter will likely be resolved with huge fines, this will also create real FUD and may force exchanges to stop trading until the lawsuit is resolved, which could take a lot of time.
Conclusion:
PEPE is a liability similar to $LUNA. It can be delisted or halted with just a notice from its author to all major exchanges. Trade with caution. Maybe it is not worth the risk? There are other meme coins that have similar growth potential but are not illegal.Note
The fact PEPE pumped outside the resistance trendline is worrying me. Last time it did happen was at $0.00000800 and it re-integrated the channel in a 30% pullback down to $0.00000500. I smell a rotten fish here. Be careful, the probability of a reintegration inside the bullish pattern is higher than a continuation of the current insane pump.Note
PEPE is amazing! Totally parabolic, but did a -10% consolidation today. Not much of a problem for the Frog apparently, climbing my resistance line as if it was a support now.Trade closed: target reached
We reached all targets and PEPE still is in the upward channel, above its support.However since the market conditions have changed with a massive drop of
BTC, a new fresh idea is necessary. I am closing this idea with all target reached, I hope that you enjoyed the ride, follow me for more!
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.