Pepe Coin ($PEPE), a recently launched meme-inspired cryptocurrency that saw its value skyrocket over the last few weeks, has seen its price plunge over the last three days, and with its drop, a cryptocurrency whale lost a whopping $500,000.

After making its debut on the cryptocurrency exchange Binance on May 5, 2023, PEPE experienced an initial boom. It reached a peak price of $0.00000420, earning a market capitalization above $1 billion.

This surge was largely driven by a 67% increase in the token price the day following its introduction on Binance. However, the coin’s value plummeted to $0.00000259 by May 7, and it currently sits at a value of $0.00000206. The cryptocurrency’s price has nevertheless recovered from a $0.000001617 low.

One investor, according to data from the Ethereum blockchain, has purchased 962.3 billion PEPE for $2.46 million and has reportedly lost over $541,000 since the investment, according to Lookonchain.

As CryptoGlobe reported, when it listed the meme-inspired cryptocurrency, lading exchange Binance cautioned potential investors that PEPE lacks any inherent utility or value support mechanism. PEPE has been accused of potential insider trading, as 7% of the total token supply was reportedly purchased by insiders or team members minutes after the token generation event.

Despite warnings about the contract owner’s potential ability to modify transaction taxes and blacklist functions, PEPE’s market has seen a remarkable boom. It is now a top 100 digital asset after multiple centralized exchange listings.

Earlier, a  fortunate cryptocurrency investor has seemingly managed to turn an investment of just 0.125 ETH in PEPE into a staggering $1.14 million in just a matter of days by buying into it at the right time.

The rise of meme-based cryptocurrencies has been a phenomenon in the world of digital finance. In recent years, established meme-inspired cryptocurrency Dogecoin ($DOGE) saw its popularity explode as rivals including Shiba Inu ($SHIB), Babydoge ($BABYDOGE) Wojak ($WOJAK), and ArbDoge, have been created and garnered significant attention.

Memecoins have become a sensation as these cryptocurrencies offer investors an opportunity for significant financial gains, as demonstrated by the recent PEPE success story.

However, the rapid rise and potential volatility of meme coins also pose significant risks to investors, especially those who may be new to the world of cryptocurrency, as many end up underwater after buying.

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