Amidst an ongoing dramatic story of high trading and losses in the meme-coin market, a well-known whale has taken a notable step of divesting a very large amount of PEPE tokens.
In the past four hours, this whale has sold 100 billion PEPE tokens, worth around $944,000. And this segment of the story isn’t going in a very good direction for meme-coin fans.
In just the past 16 hours, this same wallet, identified as 0x73d, has sold 225 billion tokens. That is a total that by itself, without any context, is hard to fathom.
The sale of $PEPE may have caused some price changes in the meme coin’s market, but what really matters is the trader’s mounting losses. The crypto community has been watching this whale’s moves with great interest, as the whale continues to sell and now holds just 50 billion PEPE tokens worth around $471,500. But the most interesting—and concerning—detail in this story is the whale’s losses. They were already deep in the red to the tune of $827,000 when last reported, a paper loss of nearly -7.89% from the $10.5 million original position.
A Continuous Cycle of Losses
This whale has been trading PEPE—a token that became prominent during the meme coin frenzy—since entering the market on August 26, 2023. The meme coin market has drawn many traders seeking to make quick, large profits because of its notorious volatility. For most traders, the wild price swings of tokens in this sector mean the potential for rapid gains. But for this whale, trading PEPE has entailed a relentless pattern of buying and selling that has produced one result: escalating losses.
For the past few months, the trader has been selling off their PEPE holdings. The most recent sale involved 100 billion tokens and was one of the largest single transactions of its kind. The average price of $0.000009273 per token sold over the past 16 hours suggests that this whale has been taking massive losses, given that the price of PEPE has been steadily cratering during that same timeframe. At its peak, the price of PEPE was way higher than it is now, so the whale’s been in a money-losing situation for quite some time.
The act of buying and selling in this meme coin market, together with the price of PEPE on a continuous downtrend, has led to a total loss of $827,000. This downturn emphasizes the risks found in the meme coin market, where traders are fixated on short-term market moves and not the fundamental value of these coins.
More Than Just PEPE: Additional Losses in $ENA
The troubles of the trader stretch well beyond PEPE. Along with the 225 billion PEPE tokens sold, the whale also has a noteworthy holding of $ENA, another meme coin, with 3.955 million $ENA tokens on deck. $ENA isn’t doing any better for the whale, which seems to be a one-trick pony for meme coins. The whale is currently sitting on a loss of $2.35 million (35.2% down) on this investment.
Although the losses in PEPE have been significant, the $ENA position has been even more distressing. This is a reminder that traders who take up residence in various meme coins may not be protected from the volatility we now expect of these tokens. For this whale, the combo of PEPE and $ENA losses has been a serious hit to the balance sheet. The overall strategy here is about as clear as mud, making it a pain point for this holder.
The considerable losses suffered from trading PEPE and $ENA highlight the perils of trading in very speculative and volatile markets. The whale’s trade has looked on paper thus far like a nasty margin call, with the trades triggering events that have us wondering if they’re in breach of some financial regulation. The meme coins—where price movements can be influenced by social media or just plain ol’ human sentiment—are always ripe for huge, unrealized losses.
The Risk and Reward of Meme Coin Trading
This whale’s tale can scarcely serve as a warning to too few in the still-lamentably unregulated meme coin market to whom it might actually concern. Nevertheless, it is what it is—we’re telling it anyway, mostly because coin holders and would-be coin holders cannot afford to have lives and fortunes ruined by trading strategies that have any real chance of earning them token amounts of money. If we weren’t blowing the whistle on this sponsorship scandal, we’d be blowing the trumpets of warning for a text we consider far, far better than the half-being comic book we denounced in part one.
With each success story in the meme coin market comes a story like this, where traders find themselves on the losing end of the trade. Hype, social media trends and sentiment rather than fundamental value drive the market, leading to sharp and often unpredictable price movements.
The whale’s status in PEPE and $ENA underscores how difficult it is to keep making money in such an unpredictable market. Some traders are able to short and get long when needed and so trade profitably and make money. And then there are these traders, which the whale represents. In the meme coin market, as we know from also looking at the NFT market, it’s pivotal to know and understand the underlying narratives that drive asset price movements. Otherwise, one could and might just be a victim of the meme coin market as it continues to evolve.
Conclusion: A Lesson in Speculative Trading
To sum up, the whales’ losses in PEPE and $ENA remind us of the dangers of the speculative meme-coin market. Yes, some people make money trading these coins. No, trading these coins is not safe. The heavy losses this whale has suffered are proof enough of that fact.
The market for meme coins is unpredictable, and traders need to exercise caution when venturing into these markets. The potential for significant losses makes it clear that not all who trade meme coins will do so profitably. The story of the whale serves as a lesson for would-be profiteers, underscoring the importance of risk management and a disciplined trading approach.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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