Since April 16, 2023, holders of the Pepe meme token (PEPE) have realized $160 million in profits — almost the entire amount comes from users who purchased the asset in the first week after launch. This is evidenced by the data of the analyst of the trading company Scimitar Capital under the nickname Alex.
I spent my Friday night indexing 482,663 on-chain transactions 😑
As promised, please enjoy my analysis of the parabolic memecoin, PEPE
🧵
— Realized and unrealized PNL of PEPE traders
— How to evaluate price and market cap through the lens of supply and liquidity— Alex (@thiccythot_) May 6, 2023
The expert analyzed over 480,000 on-chain transactions involving more than 160,000 wallets. At the same time, about 4% of all operations fell on the share of one addresses.
Alex also noted that the largest wallets belong to MEV bots, which, among other things, carried out “sandwich attacks” and provided JIT liquidity.
I calculated the realized and unrealized PnL of all PEPE txs in the pool
I did this by “marking” every tx to the current market price
Unsurprisingly, most of the PnL (80%) is asymmetrically accrued to the swappers in the first week
— Alex (@thiccythot_) May 6, 2023
According to the study, users who purchased PEPE in the first week after the launch of the token realized $160 million in profits. At the same time, traders who bought the asset in the last week received about $10 million.
Zooming in on the realized PnL graph, people who bought PEPE for the first time in the past week have realized only around $10mm of PnL
Perhaps this is why not many are euphoric about PEPE on the timeline
Only the early buyers have made real money
— Alex (@thiccythot_) May 6, 2023
According to Alex, before the average PEPE holder loses, with the current liquidity in the market, about $50 million more profit can be realized.
So the $1.2B of unrealized PEPE value is fighting over roughly $50mm of net liquidity
a high stakes game of musical chairs 🙂
— Alex (@thiccythot_) May 6, 2023
Recall that on May 5, Binance placed PEPE in the innovation zone of the exchange and opened spot trading in the asset.
Found a mistake in the text? Select it and press CTRL+ENTER
Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!
