The “pepe the frog” meme’s token, PEPE, has seen its value climb by 2,100% since its release one month ago, reaching a whopping $502 million.
According to the etherscan Ethereum block explorer, there are over 75,000 PEPE holders, with several wallets holding more than $5 million in tokens (not including centralized exchanges).
BitMEX stated on Tuesday that it is promoting perpetual swaps for the token, allowing traders to trade the volatile asset with up to 50x leverage. The PEPE cryptocurrency soared by 350% over the weekend alone.
Some early investors have cashed out while the buzz around the meme token grows. Due to low liquidity, a trader who sold $2 million worth of the coin via Metamask swaps lost $350,000.
When another dealer promptly cashed out $678,000 worth of PEPE, the price dropped by more than half.
The price movement of PEPE throughout the years is quite similar to that of dogecoin, with significant volatility caused by a lack of liquidity or long-term demand. Dogecoin’s value plummeted on many times after the initial excitement had subsided. When the derivative markets open, sellers may put pressure on PEPE as they try to cash in on the ebb and flow of the underlying trend.
Content Source: coindesk.com