The cryptocurrency trader grew from $3,000 to $46 million in one month as PEPE prices soared.
An unknown trader made over $46 million in profits by trading the Pepe (PEPE) memecoin. Can the GameStop series bring back memecoin season?
Traders made over 15,000x their profits on PEPE.
The savvy trader made $46 million in profits, a staggering 15,718 times his initial $3,000 investment.
An unknown wallet bought the $4.9 trillion Pepe for $3,000 on April 15, and he is now worth more than $56 million. According to Lookonchain’s May 15 post.
Pepe’s current market cap is $4.5 billion, making it the third-largest memecoin behind Dogecoin (DOGE) and Shiba Inu (SHIB). Pepe is up more than 40% in the last seven days.
Memecoins “A symptom of a disillusioned generation”
According to Hao Yang, head of financial products at Bybit exchange, Memecoin’s recent success is the result of a younger generation feeling a similar disillusionment with the punk music genre, which became a popular music movement after initial criticism.
Yang told Cointelegraph:
“Memcoin’s success can be seen, like punk rock, as a symptom of young investors becoming disillusioned by seeing the opportunities given to them by their parents disappear.”
Moreover, memecoins reaching billions of dollars in value demonstrate the absurdity of the financial system, Yang added.
“By printing tokens out of thin air and pumping them into billions of dollars in value, these creators are demonstrating the absurdity of the current fiat system.”
Related: Did Bitcoin Bottom at $56,000? BTC price chart hints at a breakout within a few days
Is GameStop’s GME stock increasing memecoins?
Pepe’s current rally may have something to do with the resurgence of the GameStop stock frenzy. The price of GameStop’s stock (GME) began rising on May 13 after Keith Gill, widely credited with starting GameStop shorting in 2021, unexpectedly returned to social media after nearly three years.
Pepe hit a new all-time high of over $0.000010 on May 13, a day after Gill returned to social media. GameStop shares rose more than 111% in the 24 hours following Gill’s return. In one day, GameStop stock surpassed Bitcoin’s annual return.
According to Meter CEO Xiaohan Zhu, the GameStop rally is likely the main reason for Pepe’s price rise. Zhu told Cointelegraph:
“The GME incident may be one of the factors contributing to PEPE’s momentum. I believe the reason for the recent decline in the cryptocurrency market is mainly due to the pursuit of profits and the fact that a number of large projects have been listed on exchanges, absorbing a significant portion of the market liquidity.”
Although it is difficult to predict the start of the overall memecoin run, some traders believe GameStop’s profits will flow into altcoins, similar to the 2021 bull market.
Based on historical chart patterns, the 2021 altcoin rally was fueled immediately after the GameStop rally, according to cryptocurrency analyst CryptoAmsterdam’s May 14 postI have referred to the chart below.
It is unlikely that every memecoin will benefit from the GameStop series, but according to Aleksandra Artamonovskaja, head of art at Tezos TriliTech, Pepe seems poised to rally even further as it provides relevant commentary on the GameStop pump for retail investors. .
She told Cointelegraph:
“Pepe is not only the most recognizable meme on the internet, but a culture in its own right, a symbol of opposition to the establishment, a symbol of freedom and hope. This is a story that ties into the GME story.”
Related: Altcoins will bottom in early summer before bull market — Analyst
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.
