Key Takeaways
- PEPE memecoin was listed on Binance on Friday and went from $0.00000420 to $0.00000211, leading to enormous losses for buyers
- One whale is seeing enormous losses — as much as $500,000 after investing $2.46 million into PEPE
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Following its Friday launch on Binance, the PEPE memecoin dropped 38% after three days, leading to steep losses for speculators.
Pepe Coin (PEPE), the memecoin launched on April 15, has skilled a major value drop lately, shedding 38% of its worth in only a few days.
PEPE was lately listed on Binance on May 5, 2023, peaking at $0.00000420. It boasted a $1 billion market cap when the token value rose 67% on Saturday after its itemizing on Binance. However, PEPE’s value fell from round $0.00000420 on May 5 to $0.00000259 on May 7. PEPE sits at $0.00000211 on the time of writing, in accordance to information from CoinGecko.
The Binance crew famous, “PEPE has no token utility or value support mechanism. Also, there are signs that certain insiders or team members were able to buy 7% of the total token supply minutes after TGE [token generation event].” Memecoins normally haven’t any actual utility and function on the virality of the meme itself. Those who’re early buyers and sellers may see giant income, whereas these mistiming these gross sales may lead to enormous losses.
This was the case for one whale. This hopeful investor purchased 962.3 billion PEPE for $2.46 million. At the time of the under tweet by information agency Lookonchain, the whale misplaced $541,000 and counting.
A whale purchased 962.3B $PEPE($2.46M at the moment) with 70 $WBTC ($2.07M) and 470 $ETH ($937K) prior to now 2 days, with a median shopping for value of $0.000003122.
He has misplaced ~$541K on the present value!https://t.co/GDBdXcVyGt pic.twitter.com/7s1Ns90OOc
— Lookonchain (@lookonchain) May 7, 2023
With common memecoin equivalent to Dogecoin, the worth was typically indicative of the actions of Tesla CEO Elon Musk. For instance, when Musk introduced that Tesla was accepting DOGE as fee, the worth shot up 35.7%. With the worth primarily based on nothing concrete, DOGE and different memecoins equivalent to SHIB or PEPE are akin to playing. Binance’s CEO Changpeng “CZ” Zhao adopted up the sudden PEPE value breakout with some useful buying and selling recommendation:
Meme cash (and all crypto) are excessive threat!
Remember, nobody is forcing you to purchase them. DYOR and be chargeable for your individual actions. https://t.co/4GBHB3Llkx
— CZ 🔶 Binance (@cz_binance) May 5, 2023
With PEPE’s present value of $0.00000211, at the time of writing and a market cap of $874,128,193, PEPE nonetheless has a major following and is anticipated to expertise the same old excessive and lows regular for a “token [that] has no utility and it is created by an anonymous team,” in accordance with the Binance report.