Early PEPE Coin Investor Suffers 43.4% Loss in Recent Trade: What the Data Reveals
Zach Anderson Aug 31, 2023 08:10
Crypto trader 0x025 sold 263 billion $PEPE tokens for 226,000 $DAI, causing a 43.4% decrease in value. The transaction, his second in 52 days, follows controversies surrounding the $PEPE coin, including founder scandals and insider trading allegations.
An early crypto trader known as 0x025, previously operating under the alias pepeworldorder.eth, sold 263 billion $PEPE tokens for 226,000 $DAI. The sale occurred at a rate of $0.00068591 per token, resulting in a loss of $174,000, or a 43.4% decrease in value. The transaction took place five hours ago and marks the trader's second $PEPE deal, which closed at a loss after 52 days. This move comes with a backdrop of controversies surrounding the $PEPE coin, including founder scandals and allegations of insider trading.
The Two Cycles of 0x025
According to data provided by Spot On Chain, 0x025 has been involved in two significant trading cycles concerning $PEPE tokens:
First Cycle (April 17 to May 31)
Initial Investment: Bought 3.7 trillion $PEPE tokens with 329 $ETH.
Sale: Sold the 3.7 trillion $PEPE tokens for 1,744 $ETH.
Profit: Earned a return of 1,415 $ETH, equivalent to approximately $2.61 million at current ETH prices.
ROI: The return on investment was 429%.
Second Cycle (Since July 10)
Initial Investment: Bought 263 billion $PEPE tokens with 400,000 $USDT at an average rate of $0.00000152 per token.
Current Status: Closed the deal at a loss of $174,000.
The data reveals a stark contrast between the two cycles, with the first being highly profitable and the second resulting in a loss.
Founder Zachary Testa Identified
Zachary Testa, known online as @degenharambe and @LordKekLol, was recently identified as the founder of $PEPE coin. Testa reportedly purchased an $865,000 Lamborghini using his earnings from the coin, drawing attention as the original creator of Pepe the Frog, Matt Furie, did not financially benefit from the coin. Testa's team also had connections with major cryptocurrency exchanges like Binance and SushiSwap, leading to the coin's listing on these platforms.
Insider Trading Allegations
On August 24, 2023, approximately 16 trillion $PEPE tokens were transferred from the $PEPE multisig CEX Wallet to various crypto exchanges. The required signer count for the wallet was also altered, sparking allegations of insider trading.
Market Implications
The sale by 0x025 and the surrounding scandals could be indicative of $PEPE price trends. While the trader made a significant profit in the first cycle, the loss in the second cycle might signal a shift in market sentiment.
The crypto maret is fraught with volatility and scams, as demonstrated by the contrasting trading cycles of 0x025 and the ongoing scandals surrounding $PEPE coin.
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