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- PEPE token, based on the “pepe the frog” meme, has seen a 2,100% rise in value since its issuance last month, reaching a $502 million market cap with around 75,000 holders and some wallets holding over $5 million worth of the tokens.
- PEPE derivatives are set to be listed on BitMEX with up to 50x leverage, but early investors have already cashed out with some suffering significant losses due to slippage.
PEPE Token Soars to $500M Market Cap as Meme Coin Fever Grips Crypto Traders
PEPE Derivatives Listed on BitMEX with High Leverage Derivatives markets may lead to sell pressure as traders attempt to capitalize on a historically volatile and hype-driven trend
The PEPE token, inspired by the popular “pepe the frog” meme, has seen a meteoric rise in value since its issuance last month, reaching a market cap of $502 million. According to Ethereum block explorer etherscan, PEPE has around 75,000 holders, with several wallets holding over $5 million worth of the tokens, excluding centralized exchanges. However, despite the hype surrounding the meme token, some early investors have already started to cash out, with one trader selling $2 million worth of the token through MetaMask swaps and ending up losing $350,000 due to minimal liquidity and 25% slippage.
In a move that may add to the volatility, derivatives exchange BitMEX has announced that it will list perpetual swaps for the PEPE token, which will allow traders to trade the asset with as much as 50 times leverage. While this move may fuel further speculation, the history of similar meme-driven tokens like dogecoin suggests that hype can quickly subside, leading to sell pressure and price drops. In fact, one trader temporarily tanked the price of PEPE by almost 50% as they cashed out $678,000 worth of the token.
Overall, while the rise of PEPE has been impressive, it remains to be seen whether the token will maintain its value over the long term or whether it will fall victim to the same hype-driven fluctuations that have characterized other meme coins in the past.