A crypto investor made $1.02 million in just 4 days with PEPE tokens, but exiting the trade could be challenging due to a liquidity crisis.
- A crypto investor made a massive profit in 4 days through Pepe tokens.
- The liquidity crisis in the Pepe token network poses a challenge for exiting trades.
- A disparity exists between the assessed value of assets and actual cash holdings.
According to recent data by etherscan, a crypto investor swapped 0.125 Ethereum (ETH), worth $250, for 5.9 trillion PEPE tokens four days ago. But surprisingly, the investor currently is now worth $1.02 million in Pepe tokens.
Investors may need help to make such a significant profit within four days due to the liquidity crisis in the Pepe token network. Upon closer examination, it becomes apparent that although the memecoin investor currently possesses $1.02 million worth of PEPE tokens, a disparity exists between the assessed value of assets and actual cash holdings.
Sell Option Will Collapse Price Action
According to Grzegorz Drozdz who is a market analyst at Conotoxia LTD, states that these assets would take more than 46,200 years to liquidate, assuming demand remains constant. Exiting the trade prematurely could result in the price dropping below the entry point. To illustrate this problem, Drozdz used the analogy of “billionaires trying to monetize their wealth,” He stated that “an effort to sell the wealth could cause a collapse in their share price.”
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