Analysis Questions PEPE's Fair Launch Claims: Reports Alleged Bundled Supply

Summary:
Recent blockchain analysis by Bubblemaps suggests that nearly 30% of the Pepe (PEPE) token supply at launch was held by a single entity, raising concerns about the integrity of its "fair launch" narrative. Despite this, some traders have profited from the memecoin, even as its market value diminishes.

Key Takeaways:

Bubblemaps claims that approximately 30% of PEPE's supply was bundled by a single entity at its launch in April 2023.
This concentration of tokens contributed to considerable selling pressure, stalling PEPE’s price growth.
Following a recent exploit of the Pepe website, the token saw a price drop of 5.7% within 24 hours, and over 81% in the past year.
Despite challenges, some traders have achieved significant profits from PEPE.

Blockchain analysis is raising questions about the authenticity of the so-called "for the people" launch of the memecoin Pepe (PEPE). New findings from the data visualization platform Bubblemaps indicate that nearly one-third of the initial supply was controlled by a single entity, which resulted in significant selling pressure soon after the token's launch.

On Wednesday, Bubblemaps reported that around 30% of the PEPE token supply was bundled together at its launch in April 2023, claiming that investors were misled. The same group of wallets sold off $2 million worth of PEPE tokens just one day after the launch. This action created heavy selling pressure that prevented the token from reaching a market valuation of $12 billion.

This high concentration of the genesis supply stands in stark contrast to the project's promise as a “coin for the people.” The official website of PEPE stated that the token was launched "in stealth," with no pre-sale offers.

Source: Bubblemaps

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According to CoinMarketCap data, PEPE's price has fallen by 5.7% in the last 24 hours and has decreased by over 81% within the past year. Cointelegraph attempted to reach the team behind PEPE for comments but was unable to make contact.

PEPE/USD, one-year chart. Source: CoinMarketCap.com

Adding to concerns among investors, Pepe’s website was recently compromised, leading users to a malicious phishing tool known as an "inferno drainer," which is often used in scams targeting wallets.

Despite these setbacks, there are stories of traders making vast profits from PEPE. One individual turned an initial investment of $2,000 into $43 million by holding onto the token. Remarkably, the trader netted a $10 million profit after selling, despite experiencing a 74% drop from PEPE’s all-time high before cashing out.

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Forensics Tool Aims to Uncover Insider Launch Activities

Bubblemaps’ latest revelations were made possible through its Time Travel feature, a forensic-grade analytics tool introduced in May. This tool allows Web3 users to trace the historical token distribution and aims to uncover early insider activities or coordinated token accumulation, which helps prevent rug pulls and memecoin scams.

By identifying tokens where a significant portion of the supply is concentrated in a few wallets, investors can safeguard against potential scams such as rug pulls. This occurs when insiders drain liquidity or trigger a mass sell-off, resulting in a drastic price drop that can render tokens worthless.

Bubblemaps has been instrumental in detecting suspicious wallet behaviors associated with several memecoins, including the Melania token and various fraudulent Eric Trump-themed coins.

In March, one of the most significant rug pulls involved the WOLF token, inspired by "The Wolf of Wall Street," which plummeted 99% in mere hours, erasing nearly $42 million in market capitalization within a day.

Source: Bubblemaps

The WOLF token was launched by Hayden Davis, who co-created the Official Melania Meme (MELANIA) and the Libra token.

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