Pepe coin volatility turns young trader investing $263 into millionaire, is Sponge next?

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Last Updated on 4 March 2024 by CryptoTips.eu

Those so-called memecoins continue to divide those who occupy the ‘cryptosphere’. Some are dead set against it and say it spoils crypto’s reputation, others are hyper enthusiastic. The rise (and fall) of Pepecoin (PEPE) has made millionaires out of some young traders while leaving others with heavy losses.

Flashback: three years ago there were the various scandals with foodcoins (Sushi, Yam and Kimchi), last year you had the so-called copies of Dogecoin (Shiba Inu and Floki for example) and this year it is all about memecoins such as Wojak, Pepe and WallStreetBets coin.

All of these memecoins have proven to be extremely volatile and most of them have also collapsed (WallStreetBets coin recently lost 90% in one day, Pepecoin also dropped 50% in one day earlier this week).

However, they have also turned some early investors into millionaires. And that is their greatest appeal.

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5 million percent

A pseudonymous trader named “dimethyltryptamine.eth” spent $263 a month ago to buy billions of Pepe tokens at once, hoping for a price explosion just like Shiba Inu did a while ago. His dream came true and the man made millions. At one point, he was making $12 million in profit (or a 5 million percent return in just a month).

So he cashed in $3.8 million and kept the rest in coins. Pepe has since almost collapsed, so you might feel bad for him, but do remember he cashed $3.8 million in profit first.

Now when Pepe collapsed a few days ago, many jumped over to the next “memecoin” being promoted on social media, which is Sponge, a coin based on the popular cartoon character Spongebob Squarepants.

Even though you can already predict with a near certainty that it will also collapse, the hypervolatility remains the attraction for many.

The problem for the crypto world, which wants the global business media to marvel at the stability and steady growth of coins such as Bitcoin and Ethereum, is that it is of course Pepe and Sponge who are currently getting all the attention.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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