Memecoins
Mysterious Whale Withdraws $8 Million in $PEPE Tokens During Memecoin Surge
A mysterious cryptocurrency whale has made a splash on the memecoin market after moving nearly $8 million in $PEPE from Binance, effectively withdrawing 592 billion tokens following the recent price surge.
According to on-chain analytics firm Lookonchain, the whale likely purchased the tokens when the price of PEPE rose. PEPE, it is worth noting, has recently moved to new highs, having recently briefly crossed the $0.000014 mark before correcting slightly. Its gains came amid a broader cryptocurrency market rallyit spent over $200 billion to the total market capitalization of the space.
The catalyst for the broader market surge appears to be news surrounding the potential approval of Ether spot Exchange Traded Funds (ETFs) in the United States, as the Securities and Exchange Commission (SEC) suddenly required that exchanges that want to list and exchange these funds update key documents related to these products, fueling speculation that the regulator is considering approving these products.
The surge saw one early investor in the meme-inspired cryptocurrency invest just over $460 when it first launched, cashing in realizing a gain of almost 740,000% after their $460 appreciated to about $3.4 million.
Looking at the trader’s portfolio, the data shows that the trader often invests in newly launched memecoins hoping that one will take off. According to Etherscan, the investor was the first to purchase several popular memecoins, but apparently also several memecoins that vanished soon after launch data.
PEPE’s uptrend has caught the attention of some cryptocurrency analysts, with popular Altcoin trader Sherpa noting that those looking for an “overlong big cap meme” should consider PEPE as it has “good liquidity, strong volume “.
if you’re looking for a large format meme that’s too long, I think $PEPPER it’s good. good liquidity, strong volume, this one definitely catches up with the others a bit, in my opinion. I’m not saying it will change doge or anything, but it should go up in a more relative way. long in the green boxes pic.twitter.com/FeoDTd9W0k
— Altcoin Sherpa (@AltcoinSherpa) May 22, 2024
DonAlt, another popular analyst, warned of a potential bubble in the memecoin market, with valuations susceptible to dramatic corrections. Citing historical data, DonAlt predicted that the most popular memecoins, including PEPE, could experience drops of more than 80%.
Featured image via Pixabay.