The value of the new memecoin Pepe (PEPE) has dropped by over 42%, leaving a minimum of one holder with several hundred thousand of dollars in paper losses.
A $600K Realized Loss
On May 5, a crypto “whale” paid 962.3 billion Pepe tokens with 70 Wrapped Bitcoin (WBTC) and 470 Ether (ETH) at an average price of $0.000003122, as reported by blockchain monitoring website Lookonchain. According to CoinGecko, PEPE has subsequently plummeted 42% from its previous record high. The crypto investor’s PEPE assets are currently projected to have a value at only $2.4 million, representing a $600,000 unrealized loss.
The Recent All-time High
The news came only days after PEPE reached its all-time high on May 6, as reported by TheCoinRise. Pepe has garnered extensive interest since its launch on April 14, including over $636 million in trade activity in the previous 24 hours and a single-handed burn of over 5,000 ETH in associated gas expenses through Uniswap trading as of May 5.
While the memecoin’s price has been extremely volatile, the total number of individual holders has gradually climbed over the last three weeks. There were about 144,534 individual token holders, according to Dune Analytics statistics. However, even after the sudden price drop, Pepe continues to have a market valuation of little over $1 billion, ranking it 45th in terms of total worth.
Overhyped Memecoins
This is not the first instance in which a memecoin has been overhyped. They have, however, been involved in the world of cryptocurrencies since the founding of the most well-known meme-based cryptocurrency, Dogecoin, in 2013.
Binance Cites PEPE’s Lack of Transparency
Notably, Binance verified the inclusion of PEPE and FLOKI, another memecoin. Despite this, the exchange was originally wary about listing PEPE, citing a variety of issues such as a lack of transparency and a high risk nature. In addition, following multiple requests from the Indian community, this Frog-themed memecoin has been listed on India’s cryptocurrency exchange WazirX, a former Binance partner.
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