Memecoin Pepe in a free fall
2 min readIs that it? Less than two months after the launch and a foray through the top 100 most valuable cryptocurrencies, Pepe keeps slipping down. Typical memecoins: after the ascent comes the fall. 60 percent price loss in 30 days, 26 in the last seven days alone – Pepe illustrates the fall height of artificially inflated tokens. And their most important investor rule: take profits early.
Pepe: Beginning of the end?
It was only a matter of time before the internet phenomenon Pepe the Frog reached the crypto market. The token launched in April had a lot of tailwind. In just a few weeks, the price rose by several thousand percent. But the to-the-moon clamor seems to have died down again. Since the record high in May, the price has been pointing in one direction: down. A market capitalization of around 400 million US dollars remained from the high of 1.8 billion US dollars. Damage control for those who missed the exit.
Affected by this: also large investors, the so-called whales.Accordinf to crypto analysis service Lookonchain some Pepe speculators pull the ripcord and accept losses in the process. A whale sold a share of its tokens at a loss of 142,000 USD. Another whale lost 35,000 USD. Sell-offs of this magnitude could push the price further down.
Whales/SmartMoneys are selling $PEPE.
A whale deposited 649B $PEPE($761K) 1 hr ago.
0x4614 who made 1,182 $ETH($2.2M) on $PEPE sold 375.8B $PEPE($306K) at a loss of 76 $ETH($142K) 1 hr ago.
0x6544 who made $352K on $PEPE sold 257.9B $PEPE($306K) at a loss of $35K 4 hrs ago. pic.twitter.com/w8crgva6S0
— Lookonchain (@lookonchain) June 5, 2023
Race against time
Tokens that draw their popularity from social media channels and reduce use-case-driven sales arguments for cryptocurrencies to absurdity benefit especially in weak market phases. If yields falter in the sideways trend, interest shifts to those tokens that are still making the most profits. However, the prospect of quick profit is usually short-lived.
Memecoin rallies are also bought with large losses. For investors, it’s a race against time: who will cash out the fastest? If what Lookonchain calls “smart money” is already retreating, Pepe could already have passed the zenith. Luckily there is no shortage of alternatives.
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