Ethereum's Surprising Change of 114 Billion PEPE Traders; This is why.
In a dramatic turn of events, a PEPE trader capitulated and sold all of his 114.7 billion PEPE tokens for 366.5 ETH, worth approximately $1.27 million.
According to Lookonchain, the trader initially purchased the 114.7 billion PEPE tokens on May 14 and 15 for $0.000011 per token, for a total of $1.27 million.
This entry point looked promising as PEPE was gaining traction and attracting considerable interest within the crypto market. PEPE would later reach all-time highs of $0.00001718 about 14 days later.
On May 27, the price of PEPE rose, surpassing the $0.000017 mark. At this peak, the trader's holdings were valued at $1.94 million, presenting a potential profit of $670,000, or 50% gains. Despite the substantial profit, the trader decided not to sell, possibly holding onto the tokens in anticipation of further price increases, which proved costly.
However, the market took an unfavorable turn when the price of PEPE began to decline. The downward trend continued and the PEPE value fell below the trader's breakeven point of $0.000011.
Faced with the sustained drop in the price of PEPE, the trader finally decided to sell the 114.7 billion tokens. The sale was made at a breakeven price, with a yield of 366.5 ETH, almost equivalent to their initial investment of $1.27 million.
Although the trader did not suffer a financial loss, the missed opportunity to make a substantial profit underscores the importance of timing the market perfectly. In most cases, market timing has been found to have a significant impact on trading results.