Early investors of the PEPE memecoin are definitely feeling froggy.
The PEPE token, which developed from the “PEPE the frog” meme, has seen its market cap ascend to $502 million. This follows a 2,100% increase since it was launched just a month ago. As indicated by Ethereum block explorer Etherscan, PEPE has around 75,000 holders with different wallets – excluding centralized exchanges – holding over $5 million worth of the tokens.
At the end of the week, around April 29, PEPE saw its cost rise by 350%. In addition to this, derivatives exchange BitMEX has revealed that they will be posting perpetual swaps for the token. The move will allow dealers to exchange the dynamic asset with up to 50-times loverage. That is definitely enough to get someone feeling froggy!
As the excitement around the meme token builds up, certain early investors are trying to benefit from their position. One dealer sold $2 million worth of the tokens using MetaMask swaps. However, the investor endured a loss of $350,000 due to low liquidity. This works out to a 25% slippage rate. Another trader had a huge effect on PEPE’s cost by cashing out $678,000 worth of the token and briefly dropping its cost almost 50%.
PEPE’s value developments appear to be much the same as Dogecoin’s all through the years, with extraordinary instability being caused by an absence of liquidity or enduring request. The value of Dogecoin has dropped drastically on various occasions when enthusiasm started to die down. Thusly, PEPE could confront sell weight when derivative markets go live as dealers attempt to take advantage of a pattern that has consistently risen and fallen.