Pepe whales are sitting on paper profits exceeding $90 million as the Pepe memecoin, based on the Pepe the Frog cartoon, has surged in value since its launch last month. Despite being described as "completely useless" and for "entertainment purposes only" on its website, the top 15 holders, or whales, have seen their cumulative profits reach $92.6 million, according to Lookonchain.

These whales acquired Pepe coins at an average price of $0.0000000853, with the current price at around $0.00000224, translating to a gain of 2,526%, as per CoinGecko data. While some profits have been realized, with three whales selling for $1 million to $4 million, many are still holding their tokens. The largest whale holds 4.91 trillion tokens and has cashed out only a small portion. Despite its popularity, Pepe coin emphasizes that it has no intrinsic value or financial expectations, and its market cap has reached over $940 million.

The current memecoin frenzy has parallels to previous NFT and DeFi waves, focusing on speculation rather than utility, according to Steven Zheng of The Block. Although some traders have made significant gains, the trend is expected to fade, leaving only a few winners.