Crypto trader turns $2K PEPE into $43M, sells for $10M profit

A savvy cryptocurrency dealer reportedly turned $2,000 into greater than $43 million by investing within the memecoin Pepe at its peak valuation, regardless of the token’s excessive volatility and lack of underlying technical worth.

The dealer made an over 4,700-fold return on funding on the favored frog-themed Pepe (PEPE) cryptocurrency, in response to blockchain intelligence platform Lookonchain.

“This OG spent solely $2,184 to purchase 1.5T $PEPE($43M on the peak) within the early stage. He bought 1.02T $PEPE for $6.66M, leaving 493B $PEPE($3.64M), with a complete revenue of $10.3M(4,718x), Lookonchain wrote in a March 29 X put up.

The dealer realized over $10 million in revenue regardless of Pepe’s worth falling over 74% from its all-time excessive of $0.00002825, which it reached on Dec. 9, 2024, Cointelegraph Markets Pro information exhibits.

Memecoins are thought of a number of the most speculative and unstable digital property, with worth motion pushed largely by on-line enthusiasm and social sentiment somewhat than elementary utility or innovation.

Nonetheless, they’ve confirmed able to producing life-changing returns. In Might 2024, one other early Pepe investor turned $27 into $52 million — a 1.9 million-fold return — in response to onchain information.

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Memecoins are stealing the highlight from altcoins

Regardless of their intrinsic lack of utility, memecoins continued to steal the highlight from extra established cryptocurrencies, Stella Zlatareva, dispatch editor at digital asset funding platform Nexo, advised Cointelegraph:

“Excessive-beta, i.e., unstable tokens, are stealing the highlight. Living proof, memecoins surged 5.6% on common, with DOGE, PEPE, and FLOKI responding to price lower optimism and broader crypto power.”

Whereas investor demand for memecoins has surged, it might even be siphoning capital from extra established property. For instance, Solana (SOL) has fallen greater than 51% because the launch of the Official Trump (TRUMP) token in January, in response to Cointelegraph information.

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Memecoins “don’t have a tendency to attract in a lot exterior capital stream; as a substitute current eco-system capital ‘round-robins’ from one meme to the subsequent,” Dan Hughes, founding father of the decentralized finance platform Radix, advised Cointelegraph, including:

“Even within the case of TRUMP, many of the inbound liquidity was outflow from different crypto property, folks promoting their crypto portfolio to purchase TRUMP in excessive FOMO [fear of missing out].”

Insider scams and fraudulent exercise have plagued the memecoin business, and US regulators are taking notice. On March 5, New York lawmakers launched a invoice geared toward defending crypto buyers from rug pulls and comparable insider scams shortly after the scandal across the Libra (LIBRA) token, which was endorsed by Argentine President Javier Milei.

Journal: Memecoins are ded — But Solana ‘100x better’ despite revenue plunge