Trader Loses $477,000 in PEPE Coin Investment Amid Market FOMO
An anonymous trader, using the wallet address “0x4ec,” incurred a loss of $477,000 from a PEPE Coin investment influenced by FOMO (fear of missing out). This situation highlights the risks associated with buying at market peaks.
Data from Spotonchain reveals that the trader invested 4.75 WBTC and 150,000 USDC—totaling $1.59 million—to acquire 60.782 billion PEPE tokens on December 10. At that time, the crypto fear and greed index indicated high greed at a score of 78, coinciding with PEPE nearing its all-time high.
As PEPE’s price corrected, the trader sold all holdings, realizing significant losses.
PEPE Price Trajectory
PEPE Coin, launched in 2023, gained popularity among memecoin enthusiasts and ranks as the third-largest meme coin by market capitalization, following Dogecoin and Shiba Inu. Over the past year, PEPE's price increased by 1,400%, with its market cap rising over 16 times. Such substantial gains often provoke FOMO among late investors.
PEPE reached an all-time high of $0.00002825 on December 9, driven by strong demand and a broader crypto market rally. However, it has since declined by 31% from that peak, currently trading around $0.00001955.
Technical indicators indicate PEPE is in a bearish phase, with an RSI below 50 and MACD showing signs of sell-offs. Analysts note a potential bullish reversal if PEPE surpasses resistance levels near $0.00002821. This downturn aligns with a broader crypto market pullback, attributed to the Federal Reserve's recent rate cut of 25 basis points.
A notable trader on X forecasts PEPE could achieve a market cap of $50 billion under conservative estimates, potentially reaching $85 billion under optimistic conditions, referring to PEPE as the “Shiba Inu of the current cycle.”
This incident is not isolated; previously, a 19-year-old student turned a $1,000 investment in PEPE into $10,000.
The latest event underscores the necessity for strategic investment approaches, especially in volatile markets, where investing during periods of greed carries significant risks.