Despite the extreme volatility of the token and the lack of fundamental technical value, the savvy cryptocurrency trader reportedly transformed $2,000 to more than $43 million by investing in MemeCoin Pepe at its peak rating.
According to the blockchain intelligence platform LookonChain, traders have demonstrated more than 4,700 times the return on investment in the popular frog-themed Pepe (PEPE) cryptocurrency.
“This OG only spent $2,184 to buy 1.5T$$PEPE ($43 million at its peak). He sold 1.02T$PEPE for $6.66 million, leaving 493B$PEPE ($3.64 million), totaling $10.3 million (4,718x).
sauce: Lookonchain
Traders recognized profits of more than $10 million, despite Pepe’s price falling above 74% from its all-time high of 0.00002825, reaching December 9, 2024.
Pepe/USD, the best chart ever. Source: Cointelegraph Markets Pro
MemeCoins are considered some of the most speculative and unstable digital assets due to price action driven primarily by online enthusiasm and social sentiment, rather than basic usefulness or innovation.
Still, they have proven to be able to produce life-changing returns. In May 2024, another early PEPE investor changed $27 to $52 million (1.9 million times the return), according to Onchain data.
Related: $1T Stablecoin Supply can drive the next crypto rally – Pakman from Coinfund
MemeCoins steals spotlight from Altcoins
Despite their intrinsic lack of utility, MemeCoins continued to steal the spotlight from more established cryptocurrencies, Stella Zlatareva, dispatch editor at Digital Asset Investment Platform Nexo, told Cointe Legra.
“High Betta, or volatile tokens, are stealing the spotlight. Appropriately, memokine spiked by an average of 5.6%, and Doge, Pepe, and Floki responded to optimism and speed-down the broader crypto strength.”
Top 100 cryptocurrencies, weekly performance. sauce: CryptoBubbles
While Memecoins’ investor demand has skyrocketed, it can also suck up capital from more established assets. For example, according to Cointelegraph data, Solana (Sol) has fallen by more than 51% since the official Trump (Trump) token was released in January.
Related: Friday’s US inflation report could catalyze Bitcoin’s April rally
Memokine “doesn’t tend to draw in many external capital flows; instead, the existing ecosystem capital “round robin” leads to the next meme,” Danhughes, founder of the decentralized finance platform, told Cointelegraph, adding:
“Even with Trump, the majority of inbound liquidity was leaks from other crypto assets. People are selling crypto portfolios to buy Trump at extreme FOMOs (fears they missed).”
SOL/USDT, one-day chart. Source: Cointelegraph/TradingView
Insider fraud and fraudulent activities have plagued the Memecoin industry, with US regulators taking notes. On March 5, New York State Senators introduced a bill aimed at protecting crypto investors from Ragpur and similar insider fraud shortly after the scandal around Libra (Libra) Token, approved by Argentine President Javier Mirei.
https://www.youtube.com/watch?v=2Exstn1krcu
magazine: Memokine is ded, but despite the sharp decline in revenue, the solana ‘100x is good.”
