A mysterious trader has managed to generate a staggering $46 million in profit by trading the memecoin Pepe (PEPE). This impressive feat represents a mind-boggling 15,718-fold return on their initial investment of $3,000.
On April 15, the unknown trader purchased 4.9 trillion PEPE for $3,000, which is now valued at over $56 million. They then sold 1.41 trillion PEPE for $7.4 million and currently hold 3.5 trillion PEPE, worth $38.9 million, according to Lookonchain’s May 15 report.
Pepe, with its current market capitalization of $4.5 billion, now stands as the third-largest memecoin, trailing behind Dogecoin (DOGE) and Shiba Inu (SHIB). Over the past seven days, Pepe has experienced a remarkable 40% increase in value.
The recent success of memecoins can be attributed to a disillusioned younger generation, much like the rise of Punk music, which initially faced criticism but eventually became a popular movement, according to Hao Yang, the head of financial products at Bybit exchange. Yang believes that memecoins with billion-dollar valuations highlight the absurdity of the financial system.
The current surge in Pepe’s price may be linked to the resurgence of the GameStop stock craze. On May 13, GameStop’s stock price began to rise after Keith Gill, the man credited with initiating the GameStop short squeeze, made an unexpected return to social media following a three-year hiatus. Pepe reached a new all-time high of over $0.000010 on May 13, just one day after Gill’s return. GameStop shares also rallied by over 111% within 24 hours of his comeback, surpassing Bitcoin’s yearly returns.
Xiaohan Zhu, the CEO of Meter, suggests that the GameStop rally is the primary reason for Pepe’s price surge. Zhu states that while it is challenging to predict the start of a comprehensive memecoin run, some traders believe that the profits from GameStop will trickle into altcoins, similar to the 2021 bull run.
Historical chart patterns indicate that the altcoin rally in 2021 was catalyzed by the GameStop rally, according to crypto analyst CryptoAmsterdam. Not all memecoins are expected to benefit from the GameStop saga, but Pepe appears poised to rally further as it offers a relatable narrative to the GameStop phenomenon for retail investors, says Aleksandra Artamonovskaja, head of art at TriliTech, Tezos.
It is important to note that this article does not provide investment advice or recommendations. Investors should exercise caution and conduct thorough research before making any investment or trading decisions.