As a researcher with a background in finance and experience in following crypto markets, I find the recent success story of an anonymous trader making over $46 million in profit from trading Pepe (PEPE), a memecoin, to be quite intriguing. This massive return on investment (15,718x) was achieved by buying under $4 trillion PEPE for just $3,000 and later selling a portion of it for $7.4 million.
As a financial analyst, I’d rephrase that statement as follows: I discovered an unidentified trader raked in approximately $46 million in gains from dealing with the PEPE memecoin. Could the recent resurgence of events similar to GameStop potentially spark a new wave for memecoins?
Trader made over 15,000x profit on PEPE
An experienced trader earned a staggering profit of $46 million, representing a remarkable 15,718x return on their original $3,000 investment.
An unidentified individual spent just $3,000 to purchase a substantial amount of PEPE – approximately $4.9 trillion – on April 15. This holding is now valued over $56 million. Conversely, a trader disclosed having sold off $1.41 trillion of PEPE for a revenue of $7.4 million. As per the latest Lookonchain update as of May 15, this trader still holds around $3.5 trillion of PEPE valued at roughly $38.9 million.
With a market value of around $4.5 billion, Pepe ranks as the third largest memecoin after Dogecoin (DOGE) and Shiba Inu (SHIB). Over the last week, its value has surged by more than 40%.
Memecoins “a symptom of a disillusioned generation”
According to Hao Yang, the head of financial products at Bybit exchange, the current surge in popularity of memecoins can be likened to the rise of Punk music among disillusioned younger generations. Initially criticized, both movements eventually gained widespread acceptance.
Yang told CryptoMoon:
“The success of memecoins can be seen, like punk rock, as a symptom of disillusioned young investors who have seen the opportunities afforded to their parents disappear.”
Additionally, memecoins which have achieved billion-dollar evaluations serve as a glaring example of the irrationality within our monetary system, according to Yang.
“By printing tokens out of thin air and pumping them to billion-dollar valuations, these creators are showing the absurdity of our current fiat system.”
Is GameStop’s GME stock boosting memecoins?
As a researcher studying financial markets, I’ve noticed an intriguing connection between Pepe’s recent rally and the reemergence of the GameStop stock phenomenon. The price of GameStop’s stock (GME) began to surge on May 13, following the unexpected return of Keith Gill to social media after a nearly three-year absence.
On May 13, following Gill’s resurgence on social media the previous day, Pepe reached a record-breaking price of more than $0.000010. In just 24 hours, GameStop shares experienced a staggering increase of over 111%, surpassing Bitcoin’s entire yearly gains.
According to Xiaohan Zhu, the CEO of Meter, it’s believed that the GameStop rally significantly contributed to the increase in Pepe’s value as reported by CryptoMoon.
“The GME saga may be one of the factors contributing to PEPE‘s momentum. I attribute the recent board drop in crypto primarily to profit-taking and numerous large-scale projects getting listed on exchanges and thus absorbing much of the market’s liquidity.”
As an analyst, I can’t guarantee the precise timing of a comprehensive memecoin surge, but there are compelling arguments that suggest profits generated from GameStop could flow into alternative coins. This dynamic mirrors the behavior observed during the 2021 bull market.
According to the analysis of crypto expert CryptoAmsterdam, as presented in a May 14 blog post, historical chart patterns suggest that the surge in altcoins during 2021 occurred following the GameStop market frenzy. (Reference: included charts)
As an analyst at TriliTech specializing in the art sector, I believe that while not every memecoin will experience growth as a result of the GameStop phenomenon, Pepe has strong potential to thrive even more due to its relatable storyline for retail investors who have been engaged in the GameStop saga.
She told CryptoMoon:
“Beyond being the most recognized meme on the internet, Pepe is a culture of its own and symbol against the establishment, symbol of freedom and hope – a relatable narrative of the GME saga.”
Read More
- CTK PREDICTION. CTK cryptocurrency
- CTXC PREDICTION. CTXC cryptocurrency
- OKB PREDICTION. OKB cryptocurrency
- TRU PREDICTION. TRU cryptocurrency
- KSM PREDICTION. KSM cryptocurrency
- AGI PREDICTION. AGI cryptocurrency
- CHEEMS PREDICTION. CHEEMS cryptocurrency
- TNSR PREDICTION. TNSR cryptocurrency
- EUR JPY PREDICTION
- XDC PREDICTION. XDC cryptocurrency
2024-05-15 19:37