Key points to remember
- PEPE memecoin was listed on Binance on Friday and fell from $0.00000420 to $0.00000211, causing huge losses for investors
- Whale Suffers Huge Losses – Up To $500,000 After Investing $2.46 Million In PEPE
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Following Launching Friday on Binance, the PEPE memecoin fell 38% after three days, leading to heavy losses for speculators.
Pepe Coin (PEPE), the memecoin launched on April 15, recently experienced a significant price drop, losing 38% of its value in just a few days.
PEPE was recently list on Binance on May 5, 2023, peaking at $0.00000420. It had a market capitalization of $1 billion when the token’s price rose 67% on Saturday following its listing on Binance. However, the price of PEPE fell by around $0.00000420 May 5 at $0.00000259 May 7. PEPE sits at $0.00000211 at the time of writing, according to CoinGecko data.
The Binance team noted: “PEPE has no token utility or value support mechanism. Additionally, there are signs that some insiders or team members were able to purchase 7% of the total token supply minutes after the TGE (token generation event). Memecoins usually serve no real purpose and operate on the virality of the meme itself. Those who are early investors and sellers could see significant profits, while those who cheat on those sales could result in huge losses.
This was the case for a whale. This hopeful investor bought 962.3 billion PEPE for $2.46 million. At the time of the tweet below by data company Lookonchainthe whale lost $541,000 and counting.
A whale bought 962.3B $PEPE($2.46M currently) with 70 $WBTC ($2.07M) and 470 $ETH ($937,000) in the last 2 days, with an average buy price of $0.000003122.
He lost ~$541,000 at the current price! pic.twitter.com/7s1Ns90OOc
— Lookonchain (@lookonchain) May 7, 2023
With popular memecoins such as Dogecoin, the price was often indicative of the actions of Tesla CEO Elon Musk. For example, when Musk announced that Tesla accepted DOGE as payment, the price jumped 35.7%. With the price based on nothing concrete, DOGE and other memecoins such as SHIB or PEPE are akin to gambling. Binance CEO Changpeng “CZ” Zhao followed the sudden price spike in PEPE with some helpful trading tips:
Meme coins (and all cryptos) are high risk!
Remember that no one is forcing you to buy them. DYOR and be responsible for your own actions.
— CZ 🔶 Binance (@cz_binance) May 5, 2023
With PEPE’s current price of $0.00000211, to at the time of writing and a market capitalization of $874,128,193PEPE still has a large following and should experience the usual ups and downs for a “the token (which) has no use and it is created by an anonymous team,” according to Binance’s report.