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A savvy cryptocurrency trader reportedly turned $2,000 into more than $43 million by investing in the memecoin Pepe at its peak valuation, despite the token\u2019s extreme volatility and lack of underlying technical value.<\/p>\n
The trader made an over 4,700-fold return on investment on the popular frog-themed Pepe (PEPE<\/a>) cryptocurrency, according to blockchain intelligence platform Lookonchain.<\/p>\n \u201cThis OG spent only $2,184 to buy 1.5T $PEPE($43M at the peak) in the early stage. He sold 1.02T $PEPE for $6.66M, leaving 493B $PEPE($3.64M), with a total profit of $10.3M(4,718x), Lookonchain wrote in a March 29 X post.<\/p>\n Source: <\/em>Lookonchain<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n The trader realized over $10 million in profit despite Pepe\u2019s price falling over 74% from its all-time high of $0.00002825, which it reached on Dec. 9, 2024, Cointelegraph Markets Pro<\/a> data shows.<\/p>\n PEPE\/USD, all-time chart. Source: Cointelegraph Markets Pro<\/em><\/p>\n<\/figcaption><\/figure>\n Memecoins are considered some of the most speculative and volatile digital assets, with price action driven largely by online enthusiasm and social sentiment rather than fundamental utility or innovation.<\/p>\n Still, they\u2019ve proven capable of generating life-changing returns. In May 2024, another early Pepe investor turned $27 into $52 million<\/a> \u2014 a 1.9 million-fold return \u2014 according to onchain data.<\/p>\n Related: <\/strong><\/em>$1T stablecoin supply could drive next crypto rally \u2014 CoinFund\u2019s Pakman<\/strong><\/em><\/a><\/p>\n Despite their intrinsic lack of utility, memecoins continued to steal the spotlight from more established cryptocurrencies, Stella Zlatareva, dispatch editor at digital asset investment platform Nexo, told Cointelegraph:<\/p>\n \u201cHigh-beta, i.e., volatile tokens, are stealing the spotlight. Case in point, memecoins surged 5.6% on average, with DOGE, PEPE, and FLOKI responding to rate cut optimism and broader crypto strength.\u201d<\/p><\/blockquote>\n Top 100 cryptocurrencies, weekly performance. Source: <\/em>Cryptobubbles<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n While investor demand for memecoins has surged<\/a>, it may also be siphoning capital from more established assets. For example, Solana (SOL<\/a>) has fallen more than 51% since the launch of the Official Trump (TRUMP<\/a>) token in January, according to Cointelegraph data.<\/p>\n Related: <\/strong><\/em>Friday\u2019s US inflation report may catalyze a Bitcoin April rally<\/strong><\/em><\/a><\/p>\n Memecoins \u201cdon\u2019t tend to draw in much external capital flow; instead existing eco-system capital \u2018round-robins\u2019 from one meme to the next,\u201d Dan Hughes, founder of the decentralized finance platform Radix, told Cointelegraph, adding:<\/p>\n \u201cEven in the case of TRUMP, most of the inbound liquidity was outflow from other crypto assets, people selling their crypto portfolio to buy TRUMP in extreme FOMO [fear of missing out].\u201d<\/p><\/blockquote>\n SOL\/USDT, 1-day chart. Source: Cointelegraph\/<\/em>TradingView<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n Insider scams and fraudulent activity have plagued the memecoin industry, and US regulators are taking note. On March 5, New York lawmakers introduced a bill aimed at protecting crypto investors from rug pulls and similar insider scams shortly after the scandal around the Libra (LIBRA) token, which was endorsed by Argentine President Javier Milei<\/a>.<\/p>\nMemecoins are stealing the spotlight from altcoins<\/h2>\n