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PEPE holder trades $250 into $1M in four Days

PEPE holder trades $250 into $1M in four Days

A cryptocurrency investor traded 0.125 ETH, worth $250 at the time, for 5.9 trillion PEPE tokens four days ago. These tokens are currently valued at $1,02,000,000.

Due to token liquidity concerns, it may be difficult for the PEPE holder to realize this profit. Even if the memecoin investor currently possesses $1.02 million in PEPE tokens, a closer examination reveals that the value of assets “on paper” and actual cash held fluctuates.

According to Grzegorz Drozdz, “With 5.9 trillion PEPE tokens in their portfolio, it would take 46,200 years to liquidate these assets, assuming non-declining demand. Any attempt to exit the position more quickly could lead to the price falling even below the purchase level.” He likened the problem to “billionaires looking to monetize their wealth,” added that, “An attempt to sell the wealth could lead to a collapse in their share price.”

Comparable to a previous instance in which Gurgavin Chandhoke created the memecoin Pump Coin, which rapidly rose to a market capitalization of $4.8 billion while he controlled “99%” of the tokens. However, Chandhoke was unable to sell because the market lacked demand.

In addition to the lack of buyers, the issue with tokens with low liquidity is that liquidity is typically concentrated in automated market maker pools. The tech lead triager for Web3 bug bounty platform ImmuneFi, Adrian Hetman said. Based on his explanation, the issue stems from “the presence of sufficient liquidity in the pool rather than the availability of buyers. “the sale amount represents a significant portion of the pool’s overall liquidity, resulting in considerable slippage during the trade. Consequently, the profits will not be close to the standard value one would expect when selling at the spot price.”

What are PEPES?

In the last four days, the value of the Pepe-the-Frog-themed memecoin PEPE has increased after it declared itself “the most memeable memecoin in existence.” The authors of the phrase “dog days are over” were referring to the cryptocurrency bear market and the rival canine-themed memecoins Dogecoin and Shiba Inu.

According to data from CoinGecko, its value has increased by approximately 240% in the past day, reaching a peak of $0.000000342851.

Some early investors have become billionaires as a result of PEPE’s growth, at least on paper, but the lucky investor has not yet sold their tokens and has not responded to Decrypt’s request for comment.

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About MahKa

MahKa loves exploring the decentralized world. She writes about NFTs, the metaverse, Web3 and similar topics.

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