WeChat launches memecoin Froggie - price skyrockets immediately

WeChat has used "Crazy Frog" as an unofficial mascot since 2016. Recently, the company officially selected "Froggie" as the official name. This decision was made after a campaign that received strong support from the community, including the emergence of a memecoin named Froggie.

The token then surged 23% to a market capitalization of 19 million USD, but this figure has gradually decreased. WeChat has no official interest in the memecoin sector, and the likelihood that this platform will continue to interact with this digital asset in the future is quite low.

WeChat names the mascot Froggie

In today's market, memecoins can originate from all sorts of circumstances and stories – many of which sound quite ridiculous.

For example, Changpeng Zhao's dog (CZ) has also inspired a series of related meme coins. In fact, one of the strongest performing coins yesterday had a very ironic name: USELESS (useless).

Similarly, WeChat's recent decision to officially choose the mascot "Froggie" has quickly led to the emergence of a dedicated token.

This popular messaging app has used a frog as its unofficial mascot since 2016, but the poll to name it only took place last month.

Froggie has become a beloved name in the community, launched as a type of memecoin, and WeChat has made this a reality. Since then, the price of Froggie has quickly increased by 26%, reaching a market capitalization of 19 million USD.

Froggie's price performance | Source: DexscreenerHowever, it is still uncertain whether this is a sustainable memecoin. WeChat has over 1 billion monthly active users, but Froggie's presence seems to remain quite limited.

After a rapid price increase and traders taking profits, the price of this token has sharply decreased, currently with a market capitalization of 17 million USD.

Furthermore, the memecoin Froggie has no direct connection to WeChat, and this seems unlikely to change. Although the platform has supported the digital yuan for many years, WeChat has repeatedly banned all crypto and NFT activities.

Although the blockchain sector is developing in China, the government of this country still maintains a tough stance towards purely speculative crypto products.

Telegram, another messaging application, has a strong memecoin ecosystem and is more tightly integrated with digital assets and blockchain technology. In contrast, WeChat has virtually no precedent in adopting Web3, especially with memecoin.

In other words, WeChat's activities can create a temporary boost for Froggie. Over the past week, the app has shared a few memes related to Froggie, and if the level of interaction continues to rise, the price of Froggie has a good chance of continuing its upward trend.

However, Froggie is still a speculative memecoin led by the community and it is very likely to continue repeating the pattern of a sharp increase followed by a rapid decline (pump-and-dump).

Vincent