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Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.
The bewilderingly fast rise of pepecoin (PEPE), a meme coin introduced mere weeks ago that’s now worth more than $1 billion, is making gigantic fortunes for those undeterred by warnings this is a fad that will end badly.
A perfect example: a pseudonymous trader named dimethyltryptamine.eth spent $263 just three weeks ago to buy trillions of PEPE tokens. That former pittance has turned into $3.8 million in profits from tokens they’ve already sold, and their remaining holdings are worth about $9 million, according to data by blockchain research firm Arkham Intelligence. That’s an almost 5,000,000% profit.
The trader is benefitting from the breakneck rally of a coin based on the “pepe the frog” meme, a popular symbol in crypto circles. Launched in April, the meme coin’s market capitalization astonishingly surpassed $1 billion on Friday and, according to CoinGecko, at one point was worth more than Arbitrum’s ARB, which is also among the hottest newly issued tokens of 2023.
Analysts, however, have raised concerns about the concentrated ownership of pepecoin, pointing to a handful of traders acquiring substantial amounts of PEPE when the token was released last month. Blockchain sleuth Lookonchain unveiled five accounts connected to a wallet belonging to pepecexwallet.eth, which received funds directly from the token’s deployer contract, acquired over 8.87 trillion PEPE after issuance for just $385.
Dimethyltryptamine.eth, which wasn’t cited among the insider wallets by Lookonchain but belongs among the earliest buyers, purchased 5.907 trillion of PEPE tokens for $263 in two transactions on April 14 using UniSwap, Arkham shows. The trader also paid $17 for gas fees.
Since then, the trader has been gradually taking profits by sending smaller amounts multiple times a day to UniSwap, and receiving ether (ETH) in exchange. The wallet has sent $3.8 million of PEPE to UniSwap in the past month, per Arkham data, presumably to take profits, with $2.4 million of that transferred in the past 24 hours.
Pepecoin trader has been taking profits. (Arkham Intelligence)
Edited by Nick Baker.
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Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.
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Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.
Read More
In recent days, banking, investing and trading have been reinvigorated by new technology, with cryptocurrency being one of the prominent new tools. As one of the early pioneers of cryptocurrency, PepeCoin is attracting attention due to its recent unbelievable rise in value. After groundbreaking performance, it is estimated that PepeCoin’s market capitalization has surged so far that an initial pittance turned into an almost 5,000,000% profit.
First taken note of in 2017, Pepecoin was launched as a blockchain asset that could be used as a digital currency similar to Bitcoin. Created using a cutting-edge, rapidly growing technology called Proof of Stake 3.0, PepeCoin’s approach was completely different to Bitcoin’s more expensive and restrictive method. As a result, it quickly caught the attention of early adopters, with the community around it picking up steam.
Recently, the surge in interest in PepeCoin has given it a wildly successful rise. Stimulated by both increased general attention to cryptocurrencies, and the fact that it’s far lower in cost to purchase than its alternatives, this meme coin is now appreciated as a serious investment option. The rapid price increases have meant that holders of PepeCoin have logged a staggering 5,000,000% profit on initial investments.
To understand just how unexpected this performance has been, it is worth remembering that when PepeCoin was first released it was worth about 0.0009 US cents per coin. Now, it is trading at an attributable market capitalization of $7. A stellar ascension from a previously disregarded coin has not only provided investors with the opportunity of extraordinary profits, but also demonstrated the potential when used properly.
In conclusion, it can be established that the astonishing rise of PepeCoin has been one of the more spectacular success stories of cryptocurrencies. What began as a joke use of blockchain technology has now grown into an invaluable digital asset and investment option, turning almost five million percent profits for those who believed it would do well early on. With the industry of cryptocurrency still full of potential, investors should keep a look out for the up and coming coins, tools and possibilities that are now available.
