In a remarkable financial feat, an anonymous trader garnered over $46 million in profits from trading the Pepe memecoin, achieving a staggering 15,718 times return on their initial $3,000 investment.
This individual initially purchased 4.9 trillion PEPE tokens on April 15, and by May 15, the value of these tokens had surged to more than $56 million.
The trader has already cashed out 1.41 trillion PEPE for $7.4 million and still holds 3.5 trillion PEPE, currently valued at $38.9 million.
Pepe memecoin, with a market capitalization of $4.5 billion, is now the third largest behind giants like Dogecoin and Shiba Inu, reflecting a 40% increase in value over just the past week.
The resurgence in memecoins like Pepe is partly due to the same cultural disillusionment that propelled punk rock to prominence after initial skepticism.
Hao Yang, head of financial products at Bybit exchange, compared the phenomenon to punk rock, telling Cointelegraph,
“The success of memecoins can be seen, like punk rock, as a symptom of disillusioned young investors who have seen the opportunities afforded to their parents disappear.”
Yang further critiqued the broader financial system, noting, “By printing tokens out of thin air and pumping them to billion-dollar valuations, these creators are showing the absurdity of our current fiat system.”
The recent spike in Pepe’s price appears linked to the renewed excitement around GameStop’s stock, which surged following Keith Gill’s return to social media after nearly three years.
Gill’s comeback coincided with Pepe reaching new all-time highs and GameStop stock experiencing a dramatic 111% increase within 24 hours, surpassing Bitcoin’s annual returns.
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Xiaohan Zhu, CEO of Meter, believes the GameStop saga played a crucial role in Pepe’s recent momentum. Zhu explained to Cointelegraph,
“The GME saga may be one of the factors contributing to PEPE’s momentum.”
While it’s challenging to predict a broad memecoin rally, some speculate that the profits from the GameStop event might flow into other cryptocurrencies, similar to the 2021 bull market.
However, not all memecoins will likely benefit from this trend, but Pepe, with its deep cultural resonance, seems well-positioned for further gains.
Aleksandra Artamonovskaja, head of art at TriliTech, Tezos, emphasized Pepe’s unique cultural position, telling Cointelegraph,
“Beyond being the most recognized meme on the internet, Pepe is a culture of its own and symbol against the establishment, symbol of freedom and hope – a relatable narrative of the GME saga.”
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