Pepe Coin Shorters Loses Millions As PEPE’s Valuation Soars To $900 Million
Pepe coin (PEPE) has recently made waves in the cryptocurrency industry. Despite dubious predictions of an inevitable collapse, the coin has been gaining momentum, increasing by 500% in the last two weeks alone, according to CoinGecko statistics. Short sellers who bet against the token price suffer heavy losses as a result.
Concerns center around the fact that a large number of “whales”, or entities holding large amounts of tokens, have acquired PEPE quickly after its release in mid-April. This increased short interest among futures traders, with negative funding rates indicating a bearish dominance in the derivatives market.
However, in the last 24 hours, PEPE’s price has risen by 80%, resulting in significant losses for those who bet against it. According to CoinGlass statistics, shorts against PEPE lost at least $11 million across multiple exchanges during the time period, with OKX alone reporting a loss of $5.5 million, the largest amount among its peers.
Other exchanges also reported significant losses, with Huobi losing $2.2 million, Bybit losing $3.6 million, and BitMEX losing hundreds of thousands of dollars. It’s worth mentioning that this exchange has recently started allowing trading of Pepe futures.
Short seller losses in the Pepe market are second only to the liquidations of bitcoin (BTC) and ether (ETH) futures, which typically result in the biggest futures losses. When an exchange forcibly terminates a trader’s leveraged position due to the loss of some or all of the trader’s original margin, this is referred to as liquidation. It occurs when a trader is unable to meet margin requirements for a leveraged position due to a lack of cash to keep positions open.
Despite the significant losses suffered by short sellers, PEPE’s valuation has continued to increase and is now valued at $900 million. This has shown that token success is not a fad, but rather a long-term trend.
Lastly, the significant losses suffered by short-sellers in the Pepe coin market highlight the volatility of the market. However, it does point to the possibility of huge gains for those who are ready to take the risk. As always, investors should proceed with caution and study cryptocurrency investing properly before proceeding.