Renowned 'Bankruptcy Whale' James Wynn Longs PEPE, Realizes Nearly 50x Weekly Profit

James Wynn, a well-known pseudonymous crypto trader, recently longed the Pepe (PEPE) memecoin and generated significant returns. His public call for a 40x price rise by 2026 sparked a rally in the token, with PEPE surging more than 34% following his prediction. This move has reignited interest in memecoins, which have been volatile but continue to attract retail traders according to market analysis.

Wynn has a reputation for making aggressive bets on crypto price movements, often using high leverage and large notional positions. His previous trades have included a $1 billion Bitcoin long position that initially showed unrealized gains but eventually lost value as Bitcoin's price dropped according to financial reports. This history makes his latest PEPE bet particularly notable.

The surge in PEPE has occurred amid broader signs of a potential "meme season" in 2026. Memecoins as a class have seen their market capitalization rise to a two-week high of $39.45 billion, with PEPE leading the gains at 23.6%. Open interest in PEPE also increased sharply, reaching $441 million over a 24-hour period.

Why Did This Happen?

James Wynn's public prediction is a key catalyst for the PEPE rally. Wynn has positioned himself as a prominent voice in the crypto space, and his influence over retail traders has been evident in past market movements. Following his latest call, PEPE's 24-hour trading volume surged to over $600 million, a significant increase from recent levels.

The broader memecoin market has also seen renewed activity. In addition to PEPE's gains, Milady Cult Coin and Floki also experienced price increases as the year began. This suggests a broader revival of interest in the meme coin category, driven by social media buzz and speculative trading.

How Did Markets React?

The PEPE price surge has led to increased trading activity and investor attention. According to on-chain data, PEPE's open interest has risen to $441 million, reflecting the growing number of derivative bets on the token. This increase suggests that both retail and institutional traders are taking a more active stance in the market.

Retail traders appear to be a key driver of the PEPE rally. Many are drawn to the token's speculative nature and potential for high returns. This is a recurring pattern in the memecoin space, where community-driven narratives often lead to sharp price movements.

What Are Analysts Watching Next?

Analysts are monitoring whether the PEPE rally will be sustained or if it will be another short-lived spike. While the token has shown strong gains, most meme coins remain far below their all-time highs. For example, PEPE is still down 79% from its peak value.

The performance of Bitcoin and other major cryptocurrencies will also be a factor. If Bitcoin shows signs of strength, it could bolster the broader crypto market and potentially support further gains for PEPE and other meme tokens according to market analysts. Traders are also watching for new developments from exchanges and decentralized platforms that could influence liquidity and volatility.

Market observers are also keeping an eye on larger macroeconomic factors that could impact the crypto market. While the PEPE rally is primarily driven by speculative trading, broader trends in investor sentiment and risk appetite will play a role in determining whether the current momentum continues according to industry experts.

Overall, the PEPE surge highlights the influence of social media and high-profile traders in the crypto market. It also underscores the volatile nature of meme coins, which remain a niche but active segment of the digital asset landscape according to market analysis.