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A cryptocurrency trader decided to capitulate, racking up losses of $2 million after actively trading the PEPE memecoin. According to data retrieved by Finbold on June 26 from SpotOnChain, the Ethereum address ‘0x8376…’ was responsible for this series of transactions.

The trader, known for his voluminous operations, acquired a total of 2.253 trillion PEPE tokens at an average price of US$0.00001325 each. However, due to the recent fall in cryptocurrencies, he began selling his positions below this average cost.

In the last few hours, the trader sold 1.953 trillion PEPE at an average of US$0.00001249 per token, accumulating losses of US$1.577 million with this currency alone.

Trader loses millions trading cryptocurrency meme

Since 2021, the trader has realized a total profit and loss (PnL) of US$1.989 million, with US$1.875 million representing realized losses, largely due to the capitulation in PEPE. Over the past 30 days, your buying and selling activities have resulted in a loss of $2 million.

During this period, the trader spent US$29.85 million to acquire PEPE. However, upon depositing the tokens on Binance, they were nominally worth US$23.815 million. Essentially, he bought the currency when the price was high, selling it after it fell.

This trader’s story serves as a warning about the risks of speculating in cryptocurrencies without solid fundamentals, such as meme cryptocurrencies. Unlike investing in assets with long-term sustainable organic demand, meme coins attract speculators who hope to profit from buying and selling quickly, trusting that other buyers will come along to pay a higher price.

According to data from CoinGecko, the meme cryptocurrency PEPE is up almost 5% in the last 24 hours. At the time of writing this article, memecoin is costing US$0.00001251. Despite the daily appreciation, PEPE has accumulated a devaluation of more than 24% in the last 30 days.

Furthermore, the current price of memecoin is almost 27% below its all-time high value of $0.00001717, reached on May 27th (about a month ago).

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