The biggest pepe coin The (PEPE) holder holds more than $1 million in tokens even as risks loom over the short-term future of the trending meme coin.
Analysts have expressed concern about the behavior of investors who bought relatively large amounts of pepe after it was launched on Ethereum and raised the starting capital of around $1,200 to over $9 million in just a few days.
The frenzy surrounding the frog-themed token last week pushed its market cap of several thousand dollars to over $150 million. It created a lot of excitement by drawing liquidity from traders and promoting a large number of similar tokens on other blockchains.
Exit liquidity remains a concern. Data shows that trading pools for pepe coin on decentralized exchange Uniswap have less than $4 million in available liquidity as of Tuesday. That’s why a sudden sale by a top owner is likely to bring prices down immediately.
Central crypto- Trading volumes for pepe on exchanges rose to an average of $300 million per day. However, market liquidity remains relatively weak. Again, this could lead to a sharp drop in prices if a large owner liquidates their holdings.
According to data compiled by @deebs_defi of Flipside Crypto, the wallet holding the largest amount of pepe has $1.1 million worth of tokens after purchasing it for several hundred dollars worth of ether. The same wallet also holds the $1.1 million shiba inu (SHIB) and the $1 million floki (FLOKI). This is an active meme coin It shows that he is a trader. The investor holds $43,000 worth of ether.
While this wallet holds the largest amount of pepe in one place, other top owners may have spread their holdings across several wallets.
Koinfinans.com As we reported, data from Lookonchain shows that five wallets affiliated with ‘pepecexwallet.eth’, which received funding from the Pepe distributor contract, purchased cumulatively more than 8.87 trillion PEPE for only $385 after issuance, and days later the stash was over $1.23 million. It shows you selling.
These sales were made mainly through Uniswap, and a smaller amount is on the crypto exchange Huobi. sold.
1/ We found that 5 addresses related to pepecexwallet.eth bought 8.87T $PEPE at a low price, and the cost was ~0.19 $ETH ($385).
Then left 7.76T $PEPE for $1.23M on #DEXmade nearly $1.23M (3,200x)! pic.twitter.com/hIvTJX6UTK
— Lookonchain (@lookonchain) April 24, 2023
Crypto analysts like @louround_ on Twitter said last week, based on data from wallet analytics tool Bubblemaps, that almost 3% of pepe assets are linked, corresponding to $3.78 million worth of tokens.
What’s more worrying?
5 days ago $PEPE had 2 major clusters that had links with 5% of the supply each!
Based on the current valuation, 5% of the supply equals to $140M * 5% = $7M which is once again higher than all the available on-chain liquidity. pic.twitter.com/zUfqUTdofJ
— Louround 🥂 (@Louround_) April 20, 2023
$PEPE: Mysterious Whales
The memecoin surged by 1000x in just 4 days, making some users go from rags to riches.
We’ve spotted a few wallets that, with an average cost of 0.61 $ETH ($1210), managed to make over $9M – a 7500x return.
However, the timing of the buys is curious: pic.twitter.com/zw0C5TB0Se
— An Ape’s Prologue (@apes_prologue) April 19, 2023
“This poses a huge risk to the market and holders as these wallets have a token value that is superior to all of the liquidity available on-chain,” he tweeted.
Suspicious behavior confirmed by transaction timing. The wallets were newly created and funded for the sole purpose of purchasing $PEPE within minutes of listing.
At the time of writing, crypto exchanges MEXC Global and Huobi are the largest commercial pepe holders, holding more than 5.5% of the supply.