The price of the new memecoin Pepe (PEPE) is down more than 42% a few days after hitting an all-time high on May 6, leaving at least one investor with hundreds of thousands to lose.
According to the blockchain research service Lookonchain, the crypto “whale” bought 962.3 billion Pepe tokens using 70 Wrapped Bitcoin (WBTC) and 470 Ether (ETH) for a price of $ 0.000003122 on May 5. However, PEPE has fallen 42% from its all-time high since then, according to CoinGecko.
The PEPE holding of the crypto investor is estimated at only $2.4 million, representing an unearned loss of more than $600,000. Despite the recent price drop, Pepe still holds a market capitalization of over $1 billion, making it the 45th largest cryptocurrency by overall value.
Since its launch on April 14, Pepe has received a lot of attention, recording more than $636 million in trades in the last 24 hours and selling one hand more than 5,000 ETH in Uniswap-related gas bills on May 5. Although memecoin has seen a lot of price volatility, the number of private holders has been steadily increasing over the past three weeks.
According to data from Dune Analytics, there were 144,534 concurrent signals at the time of publication. The advent of memecoin mania has also led to debt in Bitcoin BTC ($27,909) network to reach the highest level in the past two years, following a significant increase in Bitcoin activity related to BRC-20 transactions.
Memecoins have played a role in the cryptocurrency industry since the creation of the meme-based cryptocurrency, Dogecoin DOGE ($0.07), in 2013. It should be emphasized that due to its lack of capital, investing in memecoins can be a very dangerous business strategy, creating huge wealth and liquidating it in equal measure.
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