Pepe coin volatility turns young trader investing $263 into millionaire, is Sponge next?

Those so-called memecoins continue to divide those who occupy the ‘cryptosphere’. Some are dead set against it and say it spoils crypto’s reputation, others are hyper enthusiastic. The rise (and fall) of Pepecoin (PEPE) has made millionaires out of some young traders while leaving others with heavy losses.

Flashback: three years ago there were the various scandals with foodcoins (Sushi, Yam and Kimchi), last year you had the so-called copies of Dogecoin (Shiba Inu and Floki for example) and this year it is all about memecoins such as Wojak, Pepe and WallStreetBets coin.

All of these memecoins have proven to be extremely volatile and most of them have also collapsed (WallStreetBets coin recently lost 90% in one day, Pepecoin also dropped 50% in one day earlier this week).

However, they have also turned some early investors into millionaires. And that is their greatest appeal.

5 million percent

A pseudonymous trader named “dimethyltryptamine.eth” spent $263 a month ago to buy billions of Pepe tokens at once, hoping for a price explosion just like Shiba Inu did a while ago. His dream came true and the man made millions. At one point, he was making $12 million in profit (or a 5 million percent return in just a month).

🐸 PEPE coin turns early investors into millionaires with 1000% gains and top 100 market cap.

On-chain analysts report over 50 addresses hold $1M+ worth of PEPE, with some traders making millions from buying and selling trillions of tokens.

— Cryptodog | Blockchain Analyst (@Sherlockrypto) May 2, 2023

So he cashed in $3.8 million and kept the rest in coins. Pepe has since almost collapsed, so you might feel bad for him, but do remember he cashed $3.8 million in profit first.

Now when Pepe collapsed a few days ago, many jumped over to the next “memecoin” being promoted on social media, which is Sponge, a coin based on the popular cartoon character Spongebob Squarepants.

$PEPE breeding fast millionaires! 🐸 pic.twitter.com/OvzOe5bTSa

— PEPE HODLER (@PepeCoinHodler) May 6, 2023

Even though you can already predict with a near certainty that it will also collapse, the hypervolatility remains the attraction for many.

$Sponge pic.twitter.com/QCoLb3qIM3

— xfiasco.eth | 🅿️⚔️🅿️ (@xFiasco_) May 9, 2023

The problem for the crypto world, which wants the global business media to marvel at the stability and steady growth of coins such as Bitcoin and Ethereum, is that it is of course Pepe and Sponge who are currently getting all the attention.