A significant crypto trader has managed to secure nearly $5 million in profits through a six-month position trade involving the meme coin PEPE. The trade was executed with a dollar-cost average totaling around $500,000 and resulted in an approximate valuation of $5.3 million upon sale.

In a notable transaction, the address '0x42C8' withdrew a substantial amount of 365.96 billion PEPE from the crypto exchange MEXC over a span of three days. This stack, valued at approximately $496,000 between December 13 and 16, 2023, was highlighted by Lookonchain.

On June 4 at 03:26 am UTC, after six months, the crypto trader transferred all the tokens to Binance, indicating a selling intention and suggesting the closure of the profitable six-month PEPE position.

PEPE was trading at $0.00001452 at the time of the Lookonchain report, resulting in a sell-off worth $5.3 million. This sell-off accounted for 0.6% of the cryptocurrency's 24-hour trading volume and less than 0.01% of its capitalization.

Meme coins like PEPE often lack intrinsic value and rely on hype and social media influence to drive their market performance. Investors in such coins are essentially speculating on finding a 'greater fool' who will purchase the assets at a higher price.

The success of the '0x42C8' trader in the PEPE trade underscores the role of retail demand in driving prices of meme coins. However, the 'Greater Fool Theory' warns about the risks associated with overvalued assets, as the market dynamics can change rapidly, leaving investors with depreciating or worthless holdings.

Disclaimer: The information provided should not be interpreted as investment advice, as investing in cryptocurrencies carries inherent risks and uncertainties.