500B Pepe Coin Dump Sparks Concerns Over Meme Coin Selloff

Pepe Coin Soars and Concerns Emerge

On November 16, 2024, Pepe Coin (PEPE) experienced a significant surge of 75% after being listed on major exchanges such as Coinbase and Robinhood. However, this excitement is tempered by recent whale activity.

Whale Dump Sparks Concerns

A large holder, commonly referred to as a "whale," recently sold 500 billion PEPE coins, netting a profit of $45 million. This move has raised concerns that other whales may follow suit, potentially triggering a broader selloff across meme coins.

Rising Social Chatter and Liquidations Signal Potential Selloff

Social media discussions surrounding meme coins have increased, often a precursor to market corrections. Additionally, on-chain data reveals a 63% increase in open interest for PEPE and $48 million in 24-hour liquidations.

Whales Cashing Out

The whale who sold the PEPE coins had accumulated a vast amount between May and September 2023. Despite the recent sale, they still hold a significant amount of PEPE, indicating a shift from long-term holdings to cashing in.

Warning Signs for Meme Coin Market

Other meme coins have also experienced gains, including DOGE, FLOKI, and BONK, potentially fueled by FOMO and greed. However, market corrections often follow such frenzied spikes.

Caution Advised

As PEPE's market capitalization reaches record highs and trading volumes soar, investors are advised to proceed with caution. The whale sell-off and other indicators suggest a potential impending selloff, which could leave smaller investors vulnerable.