2023-05-05
On May 4th, 2023,
the value of the market for PEPE, a popular cryptocurrency, decreased by almost
$200 million after whales started selling and making a
profit following a surge of over 250% in the past week.
The market value of Pepe reached $582 million on Tuesday
before dropping to $397 million due to whale selling,
according to Xin Yi, a research analyst at Nansen.
Ref: Pepe (@pepecoineth) / Twitter
"There were many large holders who bought in early and
token prices have risen significantly since then," she said. "So when
they sell for a profit, there is a significant tendency for prices and market
value to drop because people often follow the movements of these
'whales'." However, Yi also noted that the overall impact on the market
was relatively minor considering the market value.
Yi pointed to one whale who sold Pepe worth $2.2 million but received only $650,000 worth of ETH due to the wide slippage problem.
