A cryptocurrency trader was able to bounce back from a $1 million loss to achieve unrealized profits of more than $2.5 million trading the Pippin (PIPPIN) memecoin.
According to the on-chain analytics platform Lookonchain, the trader spent $1.15 million two months ago to enter into a sizable PIPPIN position of approximately 20.46 million tokens. The crypto market’s famed volatility struck quickly, and the token’s price fell by 90% shortly after the position was opened.
While many investors would have panicked and exited to save what they could, the trader in question stayed true to the course and held onto the PIPPIN tokens.
Diamond-hands trader rewarded as price surges
The odds began to shift in favor of the trader as the PIPPIN token showed signs of improvement. Its price skyrocketed from $0.091 to above $0.21 in two months. The pump rode on the back of increasing interest in AI-powered coins, with AI agent projects such as PIPPIN becoming a preferred choice for crypto traders.
Following the token’s rebound, the trader’s $1 million loss turned into a $3.68 million win with an unrealized profit of $2.5 million, according to Lookonchain. Trading activity around the memecoin also started to pick as PIPPIN’s market cap rose to more than $224.98 million CoinMarketCap data shows.
Over the past 24 hours, the memecoin recorded another 151% gain to trade at $0.2252 as of 6:11 a.m. EST. The trader has not yet sold any of the PIPPIN tokens.
PIPPIN continues to rise amid waning crypto investor sentiment
PIPPIN’s increase in price comes as investor sentiment in the crypto market takes a knock. Throughout the past day of trading, the Crypto Fear and Greed Index suffered a 19-point drop to stand at a “Neutral” score of 50. This is the index’s lowest value since October last year, with the current reading marking a 24-point drop from the “Greed” reading just a week ago.
Analysts attribute the cautious sentiment to growing fears that the US Federal Reserve will tighten monetary policy in 2025, a move that has historically gone against risk-on asset classes such as cryptocurrencies.
Crypto investors also reacted to the news that the US government reportedly received the green light to sell the $6.5 billion worth of Bitcoins it seized from the darknet marketplace, Silk Road. Many anticipated that this seized BTC would be used for the strategic Bitcoin reserve incoming US President Donald Trump said he would create once he enters the White House.
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