The Unusual Big Purchase of PEPE Tokens – Is it Insiders Buying Up the Supply?

04/19/2023 09:14 • AI Insights • 77 views

On April 19th, according to 0xScope monitoring, one of the most popular meme coins in the current market, PEPE, spent no more than 0.02 ETH on purchasing a large number of PEPE tokens from over 20 addresses within 5 minutes of building a pool in Uniuswap. After collecting these addresses and counting their holdings, 0xScope found that they hold a total of 50 trillion PEPE tokens, accounting for approximately 11.9% of the total supply, with a current total value of over $17 million. Due to the early purchase time and the fact that most of the funds at these addresses come from non managed trading platforms such as Fixedflow, which can conceal fund flows, 0xScope stated that it is not ruled out that these addresses belong to insiders.

Data: More than 20 addresses hold nearly 12% of the total supply of PEPE

Introduction

On April 19th, 0xScope monitoring revealed that a significant purchase of PEPE tokens was made within 5 minutes, from over 20 different addresses, resulting in the acquisition of over 50 trillion PEPE tokens, which accounts for almost 12% of the total supply. These tokens had a current total value of over $17 million.

What is PEPE Token?

Before diving into the details of the unusual purchase, let’s first understand what PEPE token is. It is a meme coin, a type of cryptocurrency that has taken the internet by storm lately, especially among younger audiences. The PEPE token was created in June 2016 and is named after an internet meme of a cartoon frog that was popularized on social media platforms.

The Unusual Purchase

PEPE token is a relatively small market cap coin, so when such a significant purchase is made, it raises eyebrows. According to 0xScope monitoring, the purchase did not exceed 0.02 ETH, making it seem like an either well-planned purchase or perhaps a coordinated effort from insiders. The funds for the purchase came from various addresses, mostly from non-managed trading platforms, such as Fixedflow. Such platforms could conceal fund flows, leading to speculations that these addresses belong to insiders.

The Effect on the Market

The unusual purchase of PEPE tokens had an impact on the entire market, leading to a rise in its value. The market capitalization, which was relatively low, saw a significant increase in a short time. Such a sudden purchase can lead to a chain of events that affect the overall market sentiment. Moreover, if the theory of insiders buying up the supply is valid, it could lead to a further increase in demand and value of the token, making it harder for retail investors to acquire the token and enter the market.

Identifying the Insiders

The question arises; who are those insiders that made the purchase? It is a challenging task to identify insiders’ motives and address holders, especially since the funds came from several addresses, mostly from non-managed trading platforms that conceal fund flows. Nevertheless, it is crucial to investigate such purchases to avoid any fraudulent activity that could hurt retail investors and affect the overall market.

Conclusion

The unusual purchase of PEPE tokens within 5 minutes from over 20 different addresses, resulting in the acquisition of over 50 trillion PEPE tokens and valued over $17 million, is a matter of concern for the cryptocurrency market. Such purchases could be planned, coordinated efforts from insiders to manipulate the price and affect the overall market sentiment. An investigation should be done to identify the insiders and their motive to avoid any fraudulent activity that could hurt retail investors and the overall market.

FAQs

Q1. What is a meme coin?

A: The meme coins are types of cryptocurrencies that use memes, internet jokes, or satire as their theme.

Q2. How does a significant purchase affect the market?

A: A sudden significant purchase can lead to a chain of events that affect the overall market sentiment. Moreover, if the theory of insiders buying up the supply is valid, it could lead to a further increase in demand and value of the token, making it harder for retail investors to acquire the token and enter the market.

Q3. What can the cryptocurrency market do to avoid fraudulent activity?

A: The market needs to investigate such purchases to identify insiders’ motives and address holders, especially since the funds came from several addresses, mostly from non-managed trading platforms that conceal fund flows. Such an investigation could avoid any fraudulent activity that could hurt retail investors and affect the overall market.
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