Whales appear to be offloading their Pepe holdings, data from Lookonchain reveals.
For instance, a whale who purchased nearly $3.13 million worth of PEPE during the crypto crash earlier this month sold all his coins, at a profit of just $30k.
A whale who bought 420B $PEPE($3.13M) at the bottom of the market crash dumped it 30 minutes ago!The whale spent 3.13M $USDT to buy 420B $PEPE on Aug 5 and Aug 12, then sold it all for 3.16M $USDC just 30 minutes ago, making a profit of only $30K.Address:… pic.twitter.com/ysFCDjHVOm
— Lookonchain (@lookonchain) August 14, 2024
Meanwhile, another whale sold a substantial portion of his PEPE holdings at a loss of over $2 million, Lookonchain reveals. The sell-offs could indicate a bigger crypto crash could be imminent.
On the other hand, smart money investors appear to be buying new meme coins such as Pepe Unchained.
Why Are Whales Selling Pepe?
The Pepe price declined over 12% yesterday from its weekly high, largely owing to the aforementioned sell-offs. While the meme coin has since made a recovery, this trend could be concerning to the bulls.
In particular, the whale selling a substantial portion of its PEPE holdings at a $2 million loss indicates that smart money investors could be concerned about a larger crash in the coming days.
Indeed, several factors could be a cause for concern for these whales. For instance, geopolitical tensions in the Middle East remain extremely high as Israel gears up for a retaliatory strike from Iran.
BREAKING:Iran issued a warning to airlines to avoid its airspace tonight. pic.twitter.com/eQftNOR08C
— Globe Eye News (@GlobeEyeNews) August 14, 2024
Additionally, smart money investors could be concerned about a broad-based decline in global financial markets. Notably, billionaire Warren Buffet has also been selling his stocks and increasing his cash holdings, which could mean that the Berkshire Hathaway Chairman could be gearing up for a market downturn.
JUST IN: 🇺🇸 Warren Buffett just updated his portfolio.‼️Buffett now holds $277 Billion in CASH and selling stocks like never before, including Apple. He’s getting ready for a crash… pic.twitter.com/fCzMopzPpr
— Radar🚨 (@RadarHits) August 15, 2024
Finally, the whales could have dumped their PEPE holdings owing to the political uncertainty in the US. Polymarket is now showing Kamala Harris with a ten-point lead over the pro-crypto Donald Trump.
It is unlikely that the market has priced in Trump’s underperformance in polls.
However, other experts remain bullish about Pepe’s short-term prospects, treating any crash as a buy-the-dip opportunity. After all, the Federal Reserve is poised to start cutting interest rates in September, with the CME FedWatch currently pricing in 100 bps of easing in 2024.
Some smart money investors are also buying presale tokens and new meme coins. These crypto assets show little correlation with short-term price action, allowing investors to focus on the fundamentals alone.
It is therefore no surprise that Pepe Unchained is in such high demand.
Smart Money Investors Buy New Meme Coins Such As Pepe Unchained
Popular crypto trader Cilinix Crypto – with over 66k YouTube subscribers – recently made a sizable investment in Pepe Unchained (PEPU) and he is not the only one. PEPU has raised nearly $9 million in its presale, despite the broader market uncertainty.
This new meme coin is quickly stealing the spotlight from other frog-themed tokens, owing to its native Layer-2 blockchain.
Most Ethereum meme coins face high trading costs, owing to the congestion on the Ethereum blockchain.
However, PEPU’s own layer-2 blockchain means holders can enjoy low trading costs as well as high staking rewards. This is also the perfect formula for driving up retail investments into a meme coin.
Indeed, most frog-themed meme coins – including Pepe – do not offer any staking rewards. On the contrary, presale PEPU buyers are already earning passive income at a high rate, currently at an APY of over 200%.
Owing to its unique value proposition, experts believe that early investors in Pepe Unchained could earn up to 100x returns.
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