A frog-themed meme coin PEPE The rise of the coin is creating waves in the cryptocurrency market. While larger altcoins and Bitcoin slowed, $PEPE caught the attention of crypto traders due to its market cap of approximately $102.3 million and daily trading volume of approximately $40 million. However, on-chain data reveals that investors should pay attention in the coming days.
Who Controls the Supply of PEPE?
According to a study by Twitter user @apes_prologue, like Shiba Inu and Floki meme coin’A holding group of crypto traders controls about 10% of the total $PEPE supply.
These investors hold $9.2 million worth of PEPE coins. If they decide to liquidate their holdings, the underlying price will collapse due to the lack of liquidity on the on-chain.
As a result, current holders should monitor the activity of these whales, as even a 10% sale would be enough for the token to drop completely.
Risks of Retaining PEPE
Former hedge fund analyst @Louround_ said a single $PEPE holder could destroy all liquidity on-chain, causing the underlying value to drop more than 99%. stated.
This causes a major risk for the market and holders as those wallets hold a token value superior to all the on-chain available liquidity.
NEWS CONTINUES BELOWSelling their bags will drain all the liquidity and dump the token by more than 99% 📉 pic.twitter.com/lGaE4qXYAi
— Louround 🥂 (@Louround_) April 20, 2023
As a result, $PEPE holders are advised to approach the meme coin with caution. Because whales can abandon the token and cause over-capitulation. On-chain data shows that the $PEPE meme coin has a liquidity of approximately $2.5 million.
The rise of PEPE crypto- Although it has generated excitement among investors, it is important to be mindful of the risks involved in holding the meme coin. With few traders in control of the supply and the lack of liquidity available on-chain, a significant sale could cause the token to drop. Current owners are advised to monitor the activities of these whales and act with caution.