A large investor who bought approximately $3 million worth of Pepe tokens just a few days ago is currently facing an unrealized loss of approximately $600,000.
The price of the newly introduced memecoin Pepe (PEPE) has plummeted by over 42% shortly after achieving its record peak on May 6, resulting in substantial paper losses for at least one investor amounting to hundreds of thousands.
As per blockchain analytics service Lookonchain, a notable cryptocurrency investor, often referred to as a “whale,” acquired 962.3 billion Pepe tokens using 70 Wrapped Bitcoin (WBTC) and 470 Ether (ETH) on May 5, at an average price of $0.000003122.
Since then, PEPE has experienced a 42% decline from its all-time high, as reported by CoinGecko. Consequently, the estimated value of the crypto investor’s PEPE holdings has dropped to $2.4 million, resulting in an unrealized loss of over $600,000.
A whale bought 962.3B $PEPE($2.46M currently) with 70 $WBTC ($2.07M) and 470 $ETH ($937K) in the past 2 days, with an average buying price of $0.000003122.
He has lost ~$541K at the current price!https://t.co/GDBdXcVyGt pic.twitter.com/7s1Ns90OOc
— Lookonchain (@lookonchain) May 7, 2023
Even with the recent price decline, Pepe maintains a market capitalization slightly above $1 billion, positioning it as the 45th largest cryptocurrency in terms of overall valuation.
Image source “cointelegraph”
Since its launch on April 14, Pepe has garnered significant attention, with trading volume surpassing $636 million in the last 24 hours alone. Additionally, Pepe’s Uniswap trading has resulted in the burning of more than 5,000 ETH in related gas fees as of May 5.
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Despite the highly volatile price fluctuations, the number of individual holders of the memecoin has steadily risen over the past three weeks. As per data from Dune Analytics, there are currently 144,534 individuals holding the token at the time of publication.
Image source “cointelegraph”
The rise of memecoin mania has led to a surge in fees on the Bitcoin network, reaching the highest levels seen in the past two years. This significant increase in Bitcoin activity is primarily driven by a massive spike in BRC-20-related transactions.
Memecoins have been a part of the cryptocurrency industry since the introduction of the well-known meme-based cryptocurrency, Dogecoin (DOGE), back in 2013. It is important to note that due to the absence of any underlying fundamentals, investing in memecoins can be an extremely risky trading strategy, resulting in substantial gains or losses of wealth.
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