Polkadot

PEPE

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 <p class="paragraph">A crypto trader has realized nearly $5 million in profits from a six-month position trade with the meme coin PEPE. The position had a dollar-cost average of around $500,000 and an approximate valuation of $5.3 million on sale.</p>
 <p class="paragraph">Essentially, the address ‘0x42C8‘ withdrew a total of 365.96 billion PEPE from the crypto exchange MEXC in three days. At that time, from December 13 to 16, 2023, this stack was worth approximately $496,000, as reported by <em>Lookonchain</em>.</p>
 <p class="paragraph">Six <a rel="noopener noreferrer nofollow" title="months" href="https://thebittimes.com/tag/months.html">months</a> later, on June 4 at 03:26 am UTC, the crypto <a rel="noopener noreferrer nofollow" title="trader" href="https://thebittimes.com/tag/trader.html">trader</a> deposited all the tokens to Binance. Interestingly, this usually means selling intention and suggests the <a rel="noopener noreferrer nofollow" title="trader" href="https://thebittimes.com/tag/trader.html">trader</a> has closed the six-month PEPE position with realized profits.</p>
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 <p class="paragraph">PEPE was trading at $0.00001452 by the time of the <em>Lookonchain</em> post on X, resulting in a $5.3 <a rel="noopener noreferrer nofollow" title="million" href="https://thebittimes.com/tag/million.html">million</a> sell-off. Moreover, this sell-off represents 0.6% of the cryptocurrency‘s 24-hour trading volume and less than 0.01% of its capitalization.</p>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="505" src="https://cdn.thebittimes.com/images/2024/06/04/7074ed139edc62b1b11ffaa3fd8bb90e.webp" alt="" class="wp-image-180841" srcset="https://cdn.thebittimes.com/images/2024/06/04/7074ed139edc62b1b11ffaa3fd8bb90e.webp 1024w, https://cdn.thebittimes.com/images/2024/06/04/7074ed139edc62b1b11ffaa3fd8bb90e.webp 300w, https://cdn.thebittimes.com/images/2024/06/04/7074ed139edc62b1b11ffaa3fd8bb90e.webp 768w, https://cdn.thebittimes.com/images/2024/06/04/7074ed139edc62b1b11ffaa3fd8bb90e.webp 1536w, https://cdn.thebittimes.com/images/2024/06/04/7074ed139edc62b1b11ffaa3fd8bb90e.webp 2048w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   PEPE chart with ‘0x42C8‘ buy and sell spots. Source: <em>Lookonchain</em>
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 <h2 class="wp-block-heading" id="h-meme-coins-and-the-greater-fool-theory"><strong>Meme coins and the greater fool theory</strong></h2>
 <p class="paragraph">Cryptocurrencies are inherently volatile and experimental assets from an economic perspective.</p>
 <p class="paragraph">Meme coins, such as PEPE, often lack fundamental value, while the hype and social media buzz drive their price action. Crypto traders who buy these coins are essentially gambling in the hope that someone else will buy them at a higher price.</p>
 <p class="paragraph">This mentality aligns with the “Greater Fool Theory,” which suggests that profits can be made by buying overvalued assets and selling them to a “greater fool.”</p>
 <p class="paragraph">The ‘0x42C8’ whale could profit in this six-month position <a rel="noopener noreferrer nofollow" title="trade" href="https://thebittimes.com/tag/trade.html">trade</a> due to an increased retail demand for PEPE.</p>
 <p class="paragraph">However, this theory also highlights the inherent risk of such investments, as the market eventually runs out of willing buyers. When the hype dies down and demand dwindles, <a rel="noopener noreferrer nofollow" title="trader" href="https://thebittimes.com/tag/trader.html">trader</a>s can remain holding worthless assets, leading to substantial financial losses.</p>
 <p class="paragraph"><strong><em>Disclaimer:</em></strong><em> The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.</em></p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/crypto-trader-turns-500k-into-5-3-million-in-six-months-tbt91292.html">https://thebittimes.com/crypto-trader-turns-500k-into-5-3-million-in-six-months-tbt91292.html</a></p>

Crypto trader turns $500K into $5.3 million in six months

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