An unknown trader made over $46 million in profits trading the Pepe (PEPE) memecoin. Could the GameStop saga bring back memecoin season?
The trader made over 15,000 times profit on PEPE
One savvy trader made $46 million in profits, representing a staggering 15,718 times return on his initial investment of $3,000.
The anonymous wallet purchased $4.9 trillion Pepe for $3,000 on April 15, which is currently worth more than $56 million. The trader sold the $1.41 trillion PEPE for $7.4 million and currently owns $3.5 trillion worth of Pepe worth $38.9 million, according to a Lookonchain report on May 15. attack.
Pepe’s current market cap of $4.5 billion makes it the third largest memecoin behind Dogecoin (DOGE) and Shiba Inu (SHIB). Pepe is up more than 40% over the past seven days.
Memecoins “a symptom of a frustrated generation”
The recent success of memcoins is a result of disillusioned younger generations, similar to the punk music genre, which became a popular music movement after initial criticism, according to Hao Yang, head of financial products at the ByBit exchange.
Yang told Cointelegraph:
“The success of meme currencies, like punk rock, can be seen as a symptom of the disillusionment of young investors who have seen the opportunities available to their parents disappear.”
Moreover, the billion-dollar memes show the absurdity of the financial system, Yang added:
“By printing tokens from nothing and pumping them to billion-dollar valuations, these creators are demonstrating the absurdity of our current monetary system.”
Related: Has the price of Bitcoin reached $56,000? BTC price chart indicates a breakout within days
Is GameStop’s GME Stock Boosting Meme Coins?
Pepe’s current rally may be linked to the return of the GameStop stock craze. GameStop (GME) stock price began rising on May 13, after Keith Gill — the man widely credited with sparking the 2021 GameStop short squeeze — unexpectedly returned to social media after a nearly three-year hiatus. .
Pepe reached a new all-time high of over $0.000010 on May 13, one day after Jill returned to social media. GameStop shares rose more than 111% in the 24 hours following Gill’s return. Within a day, GameStop shares surpassed Bitcoin’s annual returns.
GameStop’s rise is likely the main reason behind Pepe’s price surge, according to Xiaohan Zhu, CEO of Meter. Chu told Cointelegraph:
“The GME saga may be one factor contributing to PEPE momentum. I attribute the recent decline in cryptocurrencies primarily to profit-taking and listing of many large-scale projects on exchanges thus absorbing a lot of market liquidity.
While it is difficult to predict the start of an all-out memecoin wave, some traders believe that GameStop profits will find their way into altcoins, similar to the 2021 bull run.
Based on historical chart patterns, the 2021 altcoin rally was triggered immediately after the GameStop rally, according to cryptocurrency analyst CryptoAmsterdam on May 14. attackwhich refer to the diagrams below.
Not all memes are likely to benefit from the GameStop saga, but Pepe appears poised to rise further as he presents a narrative tied to the GameStop pump to retail investors, according to Alexandra Artamonovskaja, head of art at TriliTech, Tezos.
She told Cointelegraph:
“Besides being the most popular meme on the internet, Pepe is its own culture and anti-establishment symbol, a symbol of freedom and hope – a story connected to the GME saga.”
Related: Altcoins will bottom in early summer before rallying – Analyst
This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.
