Bitcoin

Pepe Coin (PEPE) Soars to Third-Largest Memecoin by Market Cap as Trader Reaps Massive Profits

2 Mins read

An unknown cryptocurrency trader has managed to transform a mere $3,000 investment in the Pepe (PEPE) memecoin into a staggering $46 million in just one month.

This feat represents a jaw-dropping 15,718x return on the initial investment, highlighting the potential for astronomical gains in the volatile world of memecoins.


TLDR

  • An unknown crypto trader turned a $3,000 investment in Pepe (PEPE) into over $46 million in just one month, representing a staggering 15,718x return.
  • The trader bought 4.9 trillion PEPE tokens for $3,000 on April 15, 2023, which are now worth over $56 million. They sold 1.41 trillion PEPE for $7.4 million and currently hold 3.5 trillion PEPE, valued at $38.9 million.
  • Pepe’s current market capitalization of $4.5 billion makes it the third-largest memecoin, behind Dogecoin and Shiba Inu. The token recently hit a new all-time high above $0.00001.
  • The success of memecoins like Pepe is seen as a symptom of disillusioned young investors who have seen opportunities afforded to their parents disappear, according to Hao Yang from Bybit exchange.
  • Pepe’s current rally may be associated with the resurgence of the GameStop stock craze, as the token hit a new all-time high after the return of Keith Gill, the man credited with starting the 2021 GameStop short squeeze.

According to data from the on-chain tracking platform Lookonchain, the savvy trader purchased 4.9 trillion PEPE tokens for $3,000 on April 15, 2023, when the token first launched.

As Pepe’s price skyrocketed in the following weeks, the value of the trader’s holdings soared to over $56 million. The trader has since sold 1.41 trillion PEPE for $7.4 million and currently sits on 3.5 trillion PEPE, worth an astonishing $38.9 million.

Pepe’s meteoric rise has propelled it to become the third-largest memecoin by market capitalization, trailing only behind the well-established Dogecoin and Shiba Inu.

The token recently achieved a new all-time high, surpassing the $0.00001 mark and reaching a market cap of $4.5 billion.

The success of memecoins like Pepe is being attributed to a growing sense of disillusionment among younger generations of investors.

Hao Yang, head of financial products at Bybit exchange, suggests that the popularity of these tokens can be seen as a symptom of young investors who have witnessed the disappearance of opportunities that were once available to their parents.

By creating tokens out of thin air and pumping them to billion-dollar valuations, memecoin creators are showcasing the absurdity of the current fiat system, according to Yang.

Pepe’s recent price surge may also be linked to the resurgence of the GameStop stock craze.

The memecoin hit its all-time high just a day after Keith Gill, the man widely credited with initiating the 2021 GameStop short squeeze, unexpectedly returned to social media after a nearly three-year absence.

GameStop shares rallied over 111% in the 24 hours following Gill’s return, surpassing Bitcoin’s yearly returns.

While predicting the start of a full-fledged memecoin run is challenging, some traders believe that profits from the GameStop rally will find their way into altcoins, mirroring the patterns observed during the 2021 bull run.

Aleksandra Artamonovskaja, head of art at TriliTech, Tezos, suggests that Pepe is well-positioned to benefit from the GameStop saga, as it offers a relatable narrative of freedom and hope against the establishment, resonating with retail investors.

However, the timing of the trader’s investment in Pepe has raised questions about potential insider knowledge.

The fact that the trader swapped a relatively obscure token, Timeless (LIT), for PEPE on the same day as the initial purchase has fueled speculation about the possibility of insider information.



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