A cryptocurrency trader has shocked the crypto world by turning a modest $2,000 investment into over $43 million thanks to a well-timed bet on the memecoin PEPE. According to blockchain analytics platform Lookonchain, the trader bought 1.5 trillion PEPE tokens in the early stages for just $2,184. At its peak, the holdings were worth $43 million.

The trader sold over 1 trillion tokens for $6.66 million and still holds around $3.64 million worth, netting a total profit of over $10.3 million—even after PEPE’s price fell 74% from its December 2024 high.

PEPE, like many memecoins, offers little to no technological utility. These tokens are driven largely by hype, memes, and social media buzz. Despite their speculative nature, they have proven capable of delivering life-changing returns. In another case, an investor reportedly flipped $27 into $52 million in May 2024 by jumping on PEPE early.

Experts say memecoins like PEPE, DOGE, and FLOKI are pulling attention—and capital—away from traditional altcoins. Nexo’s dispatch editor, Stella Zlatareva, noted that these “high-beta” assets have surged on average by 5.6% amid market optimism.

However, the hype comes with risks. Radix founder Dan Hughes explained that memecoins often recycle existing crypto capital rather than attract new inflows. Some even trigger sell-offs in mainstream assets, like Solana, which dropped over 51% following the TRUMP token launch.

As the memecoin craze intensifies, regulators are starting to crack down. Following a recent scam involving LIBRA, New York lawmakers have proposed a bill to protect investors from rug pulls and insider manipulation.