Thomas Daniels
In a compelling display of the high-risk, high-reward nature of cryptocurrency investing, a trader reportedly turned a $2,000 initial stake into over $43 million through early investment in the memecoin Pepe (PEPE). This position, accumulated in the token’s formative stage, yielded a staggering 4,718-fold return on investment.
At PEPE’s peak valuation, the trader’s holdings—1.5 trillion tokens—were worth $43 million. Despite the token’s significant price correction of over 74% from its December 2024 all-time high of $0.00002825, the trader successfully realized profits exceeding $10 million. He sold 1.02 trillion tokens for $6.66 million and retained 493 billion PEPE, currently valued at $3.64 million.
This instance underscores the ongoing volatility and speculative allure of memecoins. These assets, lacking intrinsic technical utility, often surge based on online hype and social sentiment. Despite this, they have demonstrated an ability to generate life-changing gains. In another example from May 2024, a PEPE investor turned a $27 investment into $52 million—a 1.9 million-fold return.
Memecoins continue to outshine many established altcoins in terms of performance and investor interest. According to industry analysts, high-beta tokens like DOGE, PEPE, and FLOKI have recently surged, reflecting broader optimism in the cryptocurrency market and growing retail enthusiasm.
However, this trend may come at the expense of established assets. For example, Solana (SOL) has declined by over 51% since the January launch of the TRUMP token. Analysts suggest memecoins often attract capital already circulating within the crypto ecosystem, leading to capital rotation rather than new inflows.
The memecoin sector has also faced growing scrutiny due to rising instances of fraudulent schemes and insider manipulation. In March, New York lawmakers introduced legislation targeting rug pulls and similar scams, following controversies tied to the Libra (LIBRA) token, which had been publicly supported by Argentine President Javier Milei.
