"Investors must really regret buying this memecoin right."
A cryptocurrency investor made $1.02 million after buying 5.9 trillion PEPE tokens at $250, but unfortunately the memecoin holder may have a hard time liquidating them.
This is because there is a difference between the asset's valuation on paper and the actual cash held even though the memecoin investor currently holds around $1.02 million in PEPE tokens.
According to Grzegorz Drozdz, a market analyst at Conotoxia Ltd said that holders of 5.9 trillion PEPE tokens would need to take 46,200 years to liquidate the digital asset.
Similar to the case of Gurgavin Chandhoke who has created a memecoin called Pump Coin, the digital asset soared until its market capitalization reached $4.8 billion but he, who owns 99% of the token, was unable to sell it due to lack of market demand.
It's not just a lack of buyers, any token that has low liquidity issues is due to market maker pools*, commented Adrian Hetman, chief technology triager at ImmuneFi's Web3 platform.
*Allows digital assets to be traded without authorization and automatically by using liquidity pools instead of traditional markets of buyers and sellers
He added that PEPE token holders need to know that the amount of sales that represent a large part of the entire pool's liquidity may result in a massive price drop during trading.
For context, PEPE is a Pepe-the-Frog themed memecoin that has soared for the past four days after branding itself as the most 'memeable' memecoin in existence and it's up another 240% at $0.0000003 when it says "dog days are over".
Although some early buyers have become millionaires after PEPE's price skyrocketed, they still haven't been able to sell the memecoin until now.
