- A PEPE whale made a profit of nearly $4.95 million within a month, representing a 52% return on investment, despite PEPE’s price falling over 17% from its all-time high.
- The whale deposited all their PEPE holdings worth $9.52 million (purchased a month ago) into a Binance wallet, leaving their wallet with only $161,449 worth of crypto, mostly Compound (COMP) tokens.
- While PEPE’s price has corrected by over 44% in the last 24 hours, some analysts predict a potential 40% further correction or a new hype cycle that could take PEPE’s market cap above $10 billion.
A recent report reveals that one savvy crypto investor made nearly $5 million in profit on the meme coin Pepe within just one month. This despite Pepe’s price falling over 17% from its all-time high. Let’s dive into the details of how this whale trader capitalized on the latest meme coin mania.
The Meme Coin Investment
According to on-chain data, a whale purchased $9.52 million worth of Pepe tokens a month ago. They then transferred all of their Pepe holdings, totaling 6,607B PEPE (about $14.95 million), into a Binance wallet. This netted the trader $4.95 million in profit, representing a 52% return on their initial investment in just one month.
Pepe Token Price Action
Pepe reached a new all-time high price on May 27 amidst the surge in popularity and trading volumes of meme coins. However, in the 24 hours before the whale’s Binance transfer, Pepe’s price fell over 44% to about $0.00001437. This price drop means Pepe is currently down over 17% from its record high.
Nevertheless, there are signs another hype cycle could be forming to propel Pepe’s market capitalization above $10 billion. According to analysts, the current correction could be forming a triangle consolidation pattern before a major upside breakout.
The Future of Pepe
Despite declines from its peak, the Pepe example shows these volatile meme coins can generate massive profits for savvy traders in short timeframes. However, they also come with substantial risks due to their lack of inherent utility. It remains to be seen whether Pepe can regain momentum and reach new highs, or if its price will continue to sink lower. Either way, the wildly speculative nature of meme coins ensures extreme price swings in both directions.
