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Whales are ditching large-cap memecoins like Pepe. Meanwhile, new projects like Pepe Unchained are gaining serious momentum.
Whales are abandoning large-cap memecoins like Pepe as the crypto market treads water.
However, hope is not lost in the joke token sector – new projects like Pepe Unchained are gaining serious momentum.
Whales walk away as Pepe can’t catch a break
The time has come for many Pepe whales to cash out their holdings, turning paper net worths into cold, hard cash.
Data from Lookonchain reveals that one trader just offloaded 420 billion tokens worth $3.16 million at a profit of just $30K. The trader bought those tokens earlier this month at $3.13 million.
With size like that, he essentially sold at break even.
A whale who bought 420B $PEPE($3.13M) at the bottom of the market crash dumped it 30 minutes ago!The whale spent 3.13M $USDT to buy 420B $PEPE on Aug 5 and Aug 12, then sold it all for 3.16M $USDC just 30 minutes ago, making a profit of only $30K.Address:… pic.twitter.com/ysFCDjHVOm
— Lookonchain (@lookonchain) August 14, 2024
And he’s not the only big-time investor cutting his position. Lookonchain also revealed how one unfortunate trader realized over $2 million in losses. He bought $8.34 million of Pepe at its highs and then liquidated $4 million’s worth on Wednesday. This left him with $2 million worth of PEPE.
As crypto market sentiment flips between bullish and bearish, smart money is leaving Pepe. However, it appears that they’re moving into new memecoins like Pepe Unchained, which have a lot of unrealized growth potential.
Here’s why smart money is snubbing Pepe
A slew of unfortunate circumstances have converged and created the ultimate price suppressor for Pepe. Pepe is down 13% this week, 39% this month, and 56% since its all-time high on 27 May.
And considering smart money is selling at a breakeven or a loss, it seems a bigger crash could be imminent. There’s no shortage of market-shaking events providing reasons to exit Pepe.
For instance, tensions continue to rise in the Middle East as apprehension of broader geopolitical fallout prevails.
⚡️BREAKING Iran has just issued a warning to airlines to avoid the airspace over the western parts of the country tonight as live weapons are being fired. pic.twitter.com/Gl3hiyN4S0
— Iran Observer (@IranObserver0) August 14, 2024
Moreover, the crypto market has failed to gain traction, even after bullish Consumer Price Index (CPI) data was released in the United States on Wednesday.
This heightened the market’s growing concern that crypto is underperforming, leading to further selling pressure today.
Current state of the market a 🧵 👇CPI came in quite bullish. 2.9%Stocks looking decent. Crypto not so much, super choppy. $btc is basically stuck under the daily RSI/trend and can’t get enough strength to push through it. Been rejected 7 times off of it.
— Chandler (Haksaw) (@ChandlerSAF) August 14, 2024
There’s also a worry that new presidential candidate Kamala Harris will gain the White House seat as her poll numbers rise. Harris is notably less welcoming to the crypto industry than the previous front-running candidate, Donald Trump.
Kamala Harris is now the favorite to win the 2024 election. pic.twitter.com/yqnMtpgJC4
— Matt Downs (@cmattdowns) August 11, 2024
That said, some traders see the current low prices as an opportunity. This comes as the market prices in a 1% rate cut by the end of 2024, according to the CME Markets FedWatch Tool.
Ultimately, Pepe remains the most successful large-cap memecoin since its inception, vastly outpacing legacy joke tokens Dogecoin and Shiba Inu.
With that, traders are moving into a new Pepe-themed utility token, Pepe Unchained, hoping to capture significant gains amidst the market’s turmoil.
You might also like: Pepe Unchained ICO raises $8M; analyst predict 10X growth potential
Smart money traders buy Pepe Unchained amid Pepe liquidity drain
Liquidity has to move somewhere, and smart money is rotating from large caps to small caps like Pepe Unchained, which have little correlation with high-level economic and geopolitical events.
Cilinix Crypto, a renowned analyst, recently noted that he invested in Pepe Unchained amid the market’s struggle. He underscored that it’s “gaining a lot of momentum” and that it “has potential.”
But while Pepe Unchained shares a similar name to Pepe, its underlying premise will shock you. It’s far from your average memecoin – Pepe Unchained is the first to have its own blockchain.
They’re building an Ethereum layer 2 network that’s fast and low-cost. It will be a home for memecoins with a dedicated Ethereum bridge, staking mechanism, and block explorer.
There are slews of undiscovered memecoin-related use cases waiting to be created. Memecoin fans can’t get enough. Helped by investments from whales like Cilinix Crypto, Pepe Unchained has raised $9 million at presale.
Investors can snag PEPU today at a discounted rate of $0.0090901, but this price is expected to rise throughout the campaign.
For more information, visit the Pepe Unchained presale website.
Read more: Pepe Unchained raises $8.5M in presale as experts make bullish calls on project
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