Alright, imagine you have a big box of Legos (in this case, something called $PEPE). You bought these Legos long ago when they were really cheap. Now, people want to buy them from you because they're worth more now.
One person, who has lots and lots of money and power in the Lego market (called a 'whale'), decided to sell some of their Legos today:
- They sold 74 billion Legos for $1.53 million.
- They got 448 Ethereum (a type of digital money) in return.
Over the last few days, this whale sold even more:
- They sold 130 billion Legos for $2.71 million.
- This time, they got 891 Ethereum.
Now, let's talk about how much money they made:
- The whale still has 3.241 trillion Legos left (worth about $64.1 million).
- They sold a big part of their Legos and made a profit of $68.3 million.
- This is like saying the whale got back 12.6 times what they spent on those Legos when they first bought them, years ago.
Now, let's talk about something else happening in the Lego market:
- The price of these Legos went down a bit recently (7.7% in just one day!).
- Big spenders like our whale usually affect the market a lot.
- However, the number of big transactions has dropped by more than half in the last 24 hours, and long-term Lego holders are holding onto their Legos even more.
So, it looks like people might be changing how they're playing with these Legos – maybe selling less and keeping them longer instead. And right now, the price of one Lego is $0.00002038 (which is a tiny amount of money).
Read from source...
**SystemX Return on Investment Analysis:**
1. **Investment:** The whale initially invested in PEPE when the price was lower than $0.00002038 (current price).
- Assuming they bought at the lowest point during the past 3 days (around $0.000019), and with the current profit, their approximate investment would be: $64.1M / 12.6x = $5.1M
2. **Profit:** The whale realized a total profit of $68.3M from selling 130.2B PEPE.
- Their return on investment (ROI) can be calculated as: ($68.3M / $5.1M) * 100% = ~1339%
3. **Transaction Fees:** The whale sold these tokens for ETH, which then needs to be converted into FIAT (e.g., USD). Exchange fees would need to be considered here.
4. **Timing:** The whale entered and exited their position during a price drop, taking advantage of lower prices to accumulate more tokens (on entry) and selling near the peak of the retracement (on exit).
5. **Hold Time:** Depending on when they first invested in PEPE, the whale held their position for 3 days or more considering the sale started 3 days ago.
6. **Opportunity Cost:** The whale missed out on further potential gains by selling some of their tokens and could have reinvested profits elsewhere during this time.
Based on the provided article, here's a breakdown of the sentiment:
1. **Positive**:
- The whale made a significant profit with a 12.6x return.
- There was marginal price recovery for PEPE at the time of writing.
2. **Neutral**:
- The whale sold and bought specific cryptocurrencies without indicating emotion or expectation.
- Market indicators suggest a shift towards HODLing, but this is a fact rather than expressing a sentiment.
3. **Negative**:
- The price of PEPE dropped by 7.7% in the last three days.
- The whale sold a large amount of PEPE as the price was dropping.
- Large transaction volume plunged by more than 50%, indicating a decrease in market activity and potential bearishness.
Overall, while there are positive aspects mentioned (the whale's significant profit), there seems to be a more negative sentiment surrounding the current state of the PEPE market.