From Frog to Fortune: Crypto Trader Makes Nearly $5 Million Over Six Months With Memecoin Bet

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As a seasoned crypto investor with a few successful trades under my belt, I can’t help but feel both elated and cautious after reading about these impressive profits from memecoins like PEPE. The potential for exponential returns is undeniably alluring, but the risks are also significant.

A skilled cryptocurrency investor has amassed approximately $5 million in earnings during the past six months by holding a large position in Pepe, the memecoin resembling the internet’s beloved frog character. This trader initially purchased 365.96 billion PEPE for an investment of around $490,000 towards the end of last year and has only recently cashed in on their substantial profits.

The trader has recently transferred their crypto assets to Binance, a well-known exchange, having held onto them for more than six months following their purchase from MEXC. This move aims to reap a substantial profit of approximately 1,000% on their initial investment.

Based on information from an on-chain analysis provider, the trader’s earnings from this transaction are approximately $4.8 million.

A large investor recently transferred approximately 365.96 billion $PEPE tokens, equivalent to around 5.3 million dollars at the current price, into Binance for potential gains. Previously, on December 13 and 16, 2023, they had withdrawn roughly 494 thousand dollars’ worth of $PEPE tokens from MEXC. Through skillful trading, this investor managed to increase their $494K investment into a substantial $5.3 million fortune within a short time frame of less than six months. The impressive profit earned amounts to a staggering 4.82 million dollars, representing a return on investment (ROI) of an astounding 976%.— Lookonchain (@lookonchain) June 4, 2024

In this instance, an initial investor in the meme-driven cryptocurrency was pleasantly surprised with a substantial return on their modest investment, realizing approximately $3.4 million in profits from an initial outlay of around $460 – equivalent to a stunning 740,000% increase.

As a researcher studying the phenomenon of memcoins, I have observed that their successes derive from their unique and speculative nature. Unlike conventional investments which hinge on the profitability of a specific business or market, memcoins are perceived as linked to the vibrant communities surrounding them.

Some analysts view memecoins as investments fueled primarily by internet hype and social media fads, following the greater fool theory’s logic where profits are derived from buying assets intending to sell them to a subsequent buyer who is prepared to pay a higher price.

The realm of cryptocurrencies has been labeled as an arena for the greater fools theory in previous instances. Neel Kashkari, who assumed the presidency and CEO role at the Federal Reserve Bank of Minneapolis on January 1, 2016, expressed this viewpoint by characterizing it as merely a means for speculation and greater fools’ transactions.

As a researcher, I’ve encountered Kashkari expressing skepticism towards cryptocurrencies before. Specifically, during the Pacific NorthWest Economic Region (PNWER) annual summit in Montana back in August 2021, he shared his less optimistic outlook on Bitcoin compared to past years. Instead of fostering financial innovation, Kashkari described the current crypto landscape as primarily consisting of “fraud, hype, noise, and confusion.”

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2024-06-05 05:41