Pepecoin short sellers lose millions after PEPE price explosion

The world of memecoins remains a special phenomenon. These are coins that in principle have no fundamental value, but still manage to build a market cap of several millions or sometimes even billions of dollars. PEPE is one such phenomenon with a market cap of $1.4 billion at the time of writing.

An increase of more than 1,200 percent

If you look at the percentages, it is difficult not to regret missing this boat. Once in a while a new memecoin pops up completely out of nowhere and this time it’s PEPE. Surely a lot of brand new memecoin millionaires were born with this.

An increase of more than 1,200 percent in a seven-day period is not normal. Of course, it also helps that stock exchange platforms such as Binance have listed the token, which means that things usually continue to rise.

Slowly but surely, PEPE is getting close to Shiba Inu and Dogecoin. The first memecoin it encounters is Shiba Inu with a market cap of $5.8 billion. Next on the menu is Dogecoin with a market cap of $10.9 billion.

Shorts get wet

Because PEPE is a memecoin, many people have opened a short position against the coin. This, of course, in the hope that the party would soon be over and things would collapse like a house of cards. That has all but happened so far, resulting in millions of dollars worth of short positions being liquidated.

We can see this nicely in the chart above from Coinglass. On May 5, a total of $10 million in shorts was liquidated for PEPE. The majority of those liquidations took place at Huobi and OKX.

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OKX was good for $5.6 million and Huobi for $4.36 million. Now, of course, the big question is whether PEPE has what it takes to continue this run even further. Are you still considering getting on this dangerous roller coaster?

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