A Look at the $7M Memecoin Investment
PEPE’s meteoric rise over the past few days has printed an increasing number of millionaires among its early buyers. Yesterday’s Binance listing further increased the profit margins of many of these investors.
According to the Arkham Intelligence dashboard, one of the biggest gainers is dimethyltryptamine.eth, who spent $260 to acquire 5.9 trillion PEPE tokens. Despite profiting over $4 million from selling about 56% of his holdings, the crypto trader’s balance of 2.56 trillion PEPE is still worth more than $7 million.
Other PEPE Millionaires
Blockchain analytical firm Arkham Intelligence reported that more than 50 addresses were holding over $1 million worth of PEPE.
On-chain sleuth Apes Prologue tweeted a handful of addresses that massively gained from the meme coin’s surge. According to the Twitter thread, one wallet, 0xc2450b49, had profited more than $1.4 million after buying 321 ETH worth of PEPE an hour before Binance listed it.
The same address had previously spent $37,000 to acquire 434 billion PEPE on April 18. At the time, it was constantly selling and repurchasing the asset within a few hours.
Another address, 0x45cf1, received 2.34 trillion PEPE, worth $729,000, 13 days ago. Onchain analysis showed that the memecoins were bought three weeks ago for $26 through 0x08f12 wallet.
The trader has made a $3.4 million profit from selling while holding 23% of the initial position. The remaining holding is still valued at about $2 million presently.
Meanwhile, a user who bought $24 worth of PEPE right as it launched was blacklisted by the developer. His wallet is now worth over $7 million as of press time.
Memecoins Investments are Volatile but Rewarding for Early Investors
BeInCrypto reported that a $12 investment in Shiba Inu (SHIB) in 2020 would be enough to have made an investor a millionaire. The report, citing Coingecko’s research of 10 meme coins, noted that an investor would have to invest an average of $66,298.25 in becoming a millionaire.
While the prospects of investing in this asset class are alluring, Binance CEO Changpeng Zhao has highlighted the dangers. According to Zhao, meme coin investments are high-risk, and crypto traders need to do their research. In its listing of Pepe and Floki, Binance corroborated its CEO statement, adding that:
“PEPE has no token utility or value support mechanism. Also, there are signs that certain insiders or team members were able to buy 7% of the total token supply minutes after TGE.”
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