According to blockchain analytics firm Spot On Chain, a whale investor has just made an enormous profit by cashing out a sizable PEPE token position.
The whale deposited 356.2 billion PEPE tokens onto the Kraken cryptocurrency exchange, earning a staggering $7.3 million in the process. This represents an incredible 31x return on the original investment.
PEPE Tokens Acquired for Just $237,000
The genesis of this whale’s windfall can be traced back to September 20, 2023. On that date, the investor withdrew 375.65 billion PEPE tokens from the Gemini exchange, having acquired them for a mere $237,000.
This means the whale was able to accumulate a massive PEPE position for a relatively small initial outlay.
Phased Liquidation of PEPE Holdings
Over the subsequent months, the whale investor slowly began offloading their massive PEPE position.
By February 17, 2024, they had initiated sales through both decentralized exchanges (DEXes) as well as the centralized Kraken platform.
The total cash-out from these transactions is estimated to have reached a staggering $7.54 million.
This means that the whale was able to extract over 31 times their original $237,000 investment, an absolutely astounding level of profitability.
It’s worth noting that the whale likely employed a phased liquidation strategy, gradually selling off their tokens over time rather than dumping the entire position at once.
This approach helps minimize the potential market impact and avoid triggering major price swings that could erode their gains.
Also Read: Coinbase Lists Pepe (PEPE) For New York Residents, Price Up By 7.5%
PEPE Price Surge and Market Impact
The timing of this whale investor’s exit from their PEPE position coincides with a sizable surge in the token’s price.
As of the time of this report, PEPE is trading at around $0.00002078, representing a 0.24% increase in the last 24 hours and a 7.13% rise over the past 7 days.
With a circulating supply of 420 trillion PEPE tokens, this translates to a current market capitalization of an impressive $8.74 billion.
So PEPE has clearly seen substantial growth and adoption, which likely contributed to the whale’s ability to cash out at such favorable prices.
Potential Implications and Future Outlook
The saga of this PEPE whale investor highlights both the remarkable potential for outsized gains in the meme coin space, as well as the substantial risks involved.
While this individual was able to time their trades perfectly and extract an astonishing 31x return, such levels of profitability are extremely rare and difficult to replicate.
For the broader PEPE community and ecosystem, the actions of this whale investor could have important implications.
The large-scale exit of such a dominant holder may shift market sentiment and put downward pressure on PEPE prices, at least in the short term.
Also Read: Investor Bags 246M WOJAK After $46.9M Profit From PEPE, WOJAK Price Rally Ahead?