Recent weeks have seen NFT traders selling Bored Ape Yacht Collection (BAYC) featuring NFTs below floor prices in order to buy memecoin PEPE. The latter has been one of the best performers in the crypto market with a surge of more than 600% in the past fortnight before cooling off in the last 24 hours. All this taking place after a popular Twitter user, Cirrus, proclaimed that traders had sold 14 BAYC NFTs, along with the resulting 672 ETH (valued at over $1.2 million at the time) for purchasing PEPE.

The crypto community has had a divided response, with some claiming that dealing with the memecoin at the moment could be highly profitable, and others arguing that the hype is so overblown that an impending crash seems to be in the cards. Meanwhile, traders persist in partaking in the PEPE ecosystem, with CryptoPotato reporting whales had transferred $590,000 worth of WBTC, $90,000 of CULT, $235,000 of UNI and $37,000 of ETH, with the aim of owning 1.72T PEPE.

This has all been accompanied by a celebrity endorsement from raper Soulja Boy, who praised PEPE for making him “rich”. On the day of the PEPE listing on the world’s biggest crypto exchange, Binance, it’s market capitalization rocketed up to around $1.7 billion according to CoinMarketCap. Unfortunately, the highly charged mania has resulted in a decline in the past 24 hours.

Though PEPE’s massive rise to prominence over the short period since its launch resembles that of Dogecoin and Shiba Inu, investors should exercise caution before expecting a similar repetition. Despite these coins hitting over $0.75 at their peak in 2021, and reaching an approximate $90 billion market cap, they eventually settled into the top 10 cryptos, where they can be found currently.

Therefore, the PEPE bonanza could end up being a brief episode that might not result in a fortune overnight, as most would hope. All in all, investors should consider the risk/reward ratio of their decisions carefully before deciding which options to go for.



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