Some traders recently sold part of Bored Ape Yacht Collection (BAYC) NFT at a discounted price to invest in meme coin which is trending right now – PEPE.
Recently, this meme coin has been one of the best-performing assets in the crypto market, as its price surged over 600% in the past two weeks before cooling off in the last 24 hours.
TRANSFER FROM NFT TO PEPE
Popular Twitter user Cirrus revealed recently that some traders sold 14 BAYC NFTs below the floor price over the weekend. They used 672 ETH (worth over $1.2 million at the time) from the sale to buy PEPE.
The crypto community has been somewhat divided on that move, with some suggesting that trading with meme coins at the moment could be quite profitable. Others believe that the hype surrounding the token has reached such a high level that an upcoming crash seems inevitable.
Cirrus has previously stated that people are likely to sell their digital artwork below the floor price to join PEPE's ecosystem.
As Cafebitcoin reported last week, crypto whales have also turned their attention to meme coins. One such holder swapped $590,000 worth of WBTC, $90,000 worth of CULT, $235,000 worth of UNI, and $37,000 worth of ETH (almost all of their assets in this wallet) for 1.72 trillion PEPE.
PEPE has become a real phenomenon in the crypto world, increasing its market cap from less than a million USD in mid-April (launch date) to over 1.7 billion USD (according to CoinMarketCap) on April 1st. May 5. It's worth mentioning that even celebrities join the frenzy in general. One example is American rapper DeAndre Cortez Way (better known as Soulja Boy), who has said that he “made his fortune from PEPE”.
Has PEPE started to lose momentum？
Despite the massive PEPE rush and near-daily price spikes, the asset has been on a downtrend for the past 24 hours. The drop comes days after Binance – the worlds largest cryptocurrency exchange – listed the coin in its Innovation Zone.
We still don't know if PEPE will mimic the performance of famous meme coins like Dogecoin and Shiba Inu, which have attracted a significant number of investors over the past few years. During its peak in 2021, DOGE skyrocketed to nearly $0.75 and reached a market cap of nearly $90 billion. It is currently among the 10 largest cryptocurrencies.
However, investors should keep in mind that the PEPE mania can be a temporary event, meaning that becoming rich overnight may not happen (as most people would like).