A cryptocurrency whale suffered a huge loss on its investment in the meme token PEPE.
According to on-chain data, the whale bought 70 WBTC and 470 ETH as well as 962.3 billion PEPE tokens in the last two days, spending a total of $3.01 million. The average purchase price of the whale's PEPE was $0.000003122 per token.
However, the price of PEPE has since plummeted, dropping to $0.00000255 at the time of this writing. This means that the whale's PEPE cache is currently only worth $2.46 million, losing $541,000, or 18% of its initial investment.
Saturday's losses came as Binance, the world's largest crypto exchange, offered its customers the chance to trade PEPE tokens for the first time. Binance has listed the altcoin despite warnings that "the token is of no use and is produced by an anonymous team."
Memecoins take a well-known internet meme and add an element of financial speculation. Although they have zero use cases, they have a long history in crypto. Those who buy early can make big profits on the way up, while those who buy near the top can experience big losses.
*Not investment advice.