NFT traders sell BAYC below floor price to buy PEPE
Some traders have recently sold the NFTs portion of the Bored Ape Yacht Collection (BAYC) at a discount to invest in the now popular memecoin – PEPE.
The asset has been among the top performers in the crypto market lately, as its price surged over 600% over the past two weeks before cooling off in the past 24 hours.
Switch from NFTs to PEPE
The popular Twitter user Cirrus revealed recently that some traders had sold 14 BAYC NFTs below the floor price over the weekend. They used 672 ETH (worth over $1.2 million at the time) bought from the deals to buy PEPE.
The crypto community was somewhat divided on this move, with some arguing that currently dealing the memecoin can be quite profitable. Others believe the hype surrounding the token has reached such a high level that an upcoming crash seems inevitable.
Cirrus has in the past claimed that people are likely to part with their digital art below floor prices to enter PEPE’s ecosystem.
As The crypto potato reported last week, crypto whales have also shifted their attention to the memecoin. One such holder exchanged $590,000 worth of WBTC, $90,000 worth of CULT, $235,000 worth of UNI and $37,000 worth of ETH (almost all the assets in this wallet) to get 1.72t of PEPE.
PEPE has turned into a real sensation in the crypto world, increasing its market cap from less than a million dollars in mid-April (its launch date) to over $1.7 billion (according to CoinMarketCap) on May 5. It is worth mentioning that even celebrities joined the general craze. An example is the American rapper DeAndre Cortez Way (better known as Soulja Boy), who so he “got rich off PEPE.”
Has PEPE started to lose steam?
Despite the massive PEPE mania and the almost daily price increases, the asset has been on a downtrend for the past 24 hours. The decline comes a few days after Binance – the world’s largest cryptocurrency exchange – listed the coin in its innovation zone.
We have yet to see if PEPE will emulate the performance of well-known memecoins, such as Dogecoin and Shiba Inu, which have attracted a significant number of investors in recent years. During the peak in 2021, DOGE skyrocketed to nearly $0.75 and reached a market cap of nearly $90 billion. It is currently among the top 10 cryptocurrencies.
Nevertheless, investors should keep in mind that the PEPE mania may be a temporary event, which means that getting rich overnight may not be the case (as most would like).
