Following the rapid rise of pepecoin from zero to nearly $2 billion in valuation within just a few weeks, and the creation of almost instant millionaires envious investors are on the hunt for another meme coin that promises to make them rich quickly.

Anybody who does so ignores the fact that PEPE’s controversial rise has a shocking magnitude. Every couple of years, digital assets with little or no fundamental value such as dogecoin or Shiba Inu appear. Finding the next PEPE can be difficult; each winner is surrounded with the ashes of previous failures. According to CoinGecko, PEPE has a market cap of less than $650,000,000.

It doesn’t deter people from trying. Some people copy what early PEPE investors did next. This is made easy by on-chain data. Sites like DeBank allow you to track wallets that contain a lot of tokens.

Last weekend, the trading volume of several newly-issued meme tokens exceeded that of PEPE. Whale watchers were responsible for this flurry of trading activity. They buy assets according to what big wallets do.

At 22:22 UTC, a wallet that owns over $4 million in PEPE bought a meme coin named HARAM. This token is rife with xenophobic images. Market cap soared from $200,000 up to $5 million within 4 hours. The 24-hour volume then reached $20 million on Saturday.

It wasn’t just this example. RIBBIT and BOB were not the only ones to see a spike in popularity over the weekend. Uniswap decentralized exchange volume surged at various points to $150 million per hour on Saturday. This is a huge increase from the usual $16 to $30 million.

Chart of Pepe/USD (dextools).

Decentralized finance (DeFi), which is a sector that has been gaining attention, is beginning to suffer. Total value locked (TVL), on DeFi protocols, has dropped from $47 billion to in the last 30-days . While some of this may be due to a correction in the crypto market, outflows like $500 million from Agility LSD could indicate a decline in interest.

(Dextools)

There’s also the question of whether meme coins are malicious. There are hundreds listed each day. A quick look at DEXTool’s ‘live new pairs’ section shows an increase in rug pulls. Token creators either dump tokens onto new investors, or change the code so that investors cannot sell.

Read more: GREED token is not a crypto scam, but an example of how to get scammed in the midst of meme coin mania

The odds are not in favor of a few lucky investors who might make a lot of money. The meme coin trend is a major problem for the cryptocurrency market. It has created a “black hole” that drains the liquidity from the market. This could be a hindrance to other cryptocurrencies such as bitcoin (BTC) and ether (ETH).

BTC and ETH, after a strong start to the new year, have now hit stubborn resistance levels at $30,000 and $2000, respectively. This is what has been dubbed S**tcoin spring.

Nick Baker is the editor.