A cryptocurrency trader has been actively trading PEPE and has decided to surrender after accumulating losses of $2 million. This is due to the collapse of the cryptocurrency, as the trader began selling his PEPE stack at prices below the Dollar Cost Average (DCA).
Finbold retrieved data from SpotOnChain on June 26th, integrating the trading history and results of the Ethereum (ETH) address “0x8376…”.
Overall, the cryptocurrency trader purchased 2.253 trillion PEPE at an average price of $0.00001325 per token. Recently, the whale began selling this stack, with increased selling activity within 8 hours of publication.
So far, 0x8376 has sold 1.953 trillion PEPE at an average of $0.00001249 per token, resulting in a loss of $1.577 million from PEPE alone. Since 2021, the trader’s cryptocurrency PnL total is $1.989 million, with $1.875 million being realized losses, mostly from surrendering PEPE.
Looking at the activity of 0x8376 over the past 30 days, there have been multiple inflows and outflows of funds, resulting in realized losses of $2 million during this period.
During this time, the PEPE whale spent $29.85 million acquiring the meme coin. Meanwhile, the trader deposited tokens with a nominal value of $23.815 million into Binance.
Essentially, this address was purchasing at high PEPE prices and selling when the price was below that level.
The trader’s story serves as a cautionary tale, illustrating the experience of most traders speculating in volatile cryptocurrencies such as meme coins.
Unlike purchasing cryptocurrencies or any asset with sustainable long-term organic demand, meme coins attract gamblers who want to enter and exit at higher prices, despite lacking solid fundamentals, hoping that others will buy for the same reason.
Interestingly, the Greater Fool Theory explains this behavior, with traders buying assets solely to find a “greater fool” to follow them.
Investors must exercise caution and conduct proper research to find cryptocurrencies with solid fundamentals, rather than being purely driven by rumors. While the cryptocurrency market inherently carries risks and volatility, meme coins bring an additional layer of risk.
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