A cryptocurrency trader has been actively trading PEPE and has decided to surrender after accumulating $2 million in losses. This is because, as the cryptocurrency faced a collapse, the trader began selling his stack of PEPE at prices below the Dollar Cost Average (DCA).
According to data retrieved by Finbold on June 26th from SpotOnChain, which integrated the trading history and outcomes 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 has started selling off this stack, with increased selling activity in the 8 hours following the 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 in realized losses, mostly from surrendering PEPE.
Looking at the activity of 0x8376 over the past 30 days, we see multiple inflows and outflows of funds, resulting in $2 million in realized losses over the past 30 days.
During this period, the PEPE whale spent $29.85 million to acquire the meme coin. Meanwhile, the trader deposited tokens with a nominal value of $23.815 million into Binance.
Essentially, the address purchased at high PEPE prices and sold when the price was lower.
This trader’s story serves as a cautionary tale, illustrating the experiences 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 looking to enter and exit at higher prices, despite lacking a solid foundation, and hoping that others will buy for the same reason.
Interestingly, the Greater Fool Theory explains this behavior, stating that the sole purpose of traders buying assets is to find a “greater fool” to follow them.
Investors must be cautious and conduct proper research to find cryptocurrencies with a solid foundation, rather than being purely driven by rumors. While the cryptocurrency market inherently carries risks and volatility, meme coins bring an additional layer of risk.
Disclaimer: The content on this website should not be considered investment advice. Investments are speculative, and your capital is at risk when investing.
