Key Points:
Lookonchain recently reported on a memecoin investor who spent 0.125 ETH ($251) to buy 5.9 trillion PEPE tokens, which are currently valued at $1.14 million.
If the investor were to sell at the price of $0.0000001933, they would make a profit of ~$1.14 million, which is more than 4,500 times their initial investment.
However, the investor may struggle to realize that profit due to liquidity issues surrounding the token. While the investor currently holds $1.02 million in PEPE tokens, upon closer inspection, it becomes clear that there is a difference between the valuation of assets “on paper” and the actual cash held.
With 5.9 trillion PEPE tokens in their portfolio, it would take so many years to liquidate these assets, assuming non-declining demand. Any attempt to exit the position more quickly could lead to the price falling even below the purchase level. This raises the question of how billionaires looking to monetize their wealth deal with these issues. Attempting to sell the wealth could lead to a collapse in share price, which is a problem for any investor.
For those interested in investing in memecoins but aren’t sure where to start, Lookonchain suggests following these four SmartMoneys. These investors previously bought PEPE and AIDOGE and achieved 10x+ gains so far.
By following their addresses, investors can keep up with the memecoins these SmartMoneys will buy next.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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