Did One Entity Impact PEPE’s Fair Launch? New Data Shows 30% Genesis Hoard and $2 Million Dump

Recent blockchain analysis is bringing new concerns regarding the much-publicized "fair launch" of the PEPE meme coin. New information indicates that nearly one-third of the initial supply of this token may have been under the control of a single entity.

Key Takeaways

Recent analysis suggests nearly 30% of PEPE’s initial supply was controlled by a single entity.
Claims of misrepresentation raise questions about PEPE’s “fair launch” narrative.
PEPE saw significant price fluctuations, including a 156% rebound on October 25.
Bubblemaps is investigating patterns of potential manipulation within the meme coin market.

By presenting these findings, we can better understand the activities surrounding various cryptocurrency launches, particularly in the meme coin sector.

Did One Entity Kill PEPE’s Fair Launch? Bubblemaps Flags 30% Genesis Hoard, $2M Dump

These revelations come from Bubblemaps, a blockchain visualization platform that released its latest findings on Wednesday, suggesting that the project’s initial portrayal may have misled investors.

Identifying Concentrated PEPE Holdings at Launch

Bubblemaps reports that approximately 30% of PEPE’s genesis supply was tied to a cluster of wallets associated with one entity during the token’s launch in April 2023.

This concentration of holdings contradicts PEPE’s branding as a token created "for the people" and its claim of launching in a stealth manner without any presale allocations.

Additionally, the same cluster reportedly sold around $2 million worth of tokens just one day after the launch. This action likely created enough early selling pressure to hinder the meme coin from surpassing a $12 billion market capitalization during its initial surge.

These claims arise during a challenging time for PEPE. The token’s price has fallen by 5.7% in the last 24 hours and is down over 81% year-to-date, according to CoinMarketCap.

The project faced an unrelated security incident last December when its website was briefly hacked, redirecting users to a malicious "inferno drainer" connected to wallet theft and other types of scams.

Despite these setbacks, PEPE has experienced significant rallies in the past two months. On October 8, the token outperformed the overall meme coin market amidst increased accumulation from large holders.

Data from Nansen indicated that the top 100 wallets raised their holdings by 4.18% over the month, amassing more than 307 trillion tokens.

At that time, analysts identified a bullish pennant formation, noting that PEPE was testing a historically strong demand zone, which led to speculation of an upcoming breakout.

On October 25, the token surged 156% from a weekly low, drawing in dip buyers and applying pressure on short sellers as trading volumes approached $1 billion.

Bubblemaps Investigates Large-Scale Wallet Coordination Across Major Meme Tokens

Bubblemaps' latest findings are part of broader research into hidden accumulation patterns, insider launches, and potential manipulation within the meme coin sector.

The firm’s "Time Travel" analytics tool, launched in May, reconstructs historical token distributions to reveal wallets that might have coordinated their holdings prior to the launch.

Their objective is to help traders identify risks such as rug pulls, concentrated supply, and swift liquidity removal.

Bubblemaps has already exposed questionable behaviors behind several notable meme tokens this year.

In February, the firm connected the MELANIA and LIBRA tokens to the same wallet, alleging that the entity behind these tokens had employed insider techniques to seize early liquidity and extracted millions in profits before both tokens collapsed.

The downfall of LIBRA resulted in political repercussions in Argentina after insiders allegedly withdrew over $100 million, causing the token’s value to plummet almost instantly.

Similar patterns have been found in other cases. Investigators revealed that over 70% of the holders of Kanye West’s YZY token faced losses soon after the launch, while 11 wallets captured nearly one-third of the total profits.

Bubblemaps also raised concerns in September about what they termed one of the largest Sybil attacks ever, linking around 100 wallets to a coordinated scheme that claimed $170 million worth of MYX airdrop tokens.

Lastly, in early December, the firm connected over 1,000 wallets to a single actor who allegedly captured the majority of the WET token presale on Solana in mere seconds.