Pepe Coin’s Top Bull Also Has Millions in Shiba Inu, but Holdings Suggest Risk for Traders

The largest pepe coin (PEPE) holder is sitting on more than $1 million worth of the token even as concentration risks loom over the short-term future of the trending memecoin.

Analysts have raised concerns about the behavior of investors who bought relatively large amounts of pepe after its issuance on Ethereum, turning about $1,200 of initial capital to over $9 million in just a few days.

The frenzy surrounding the frog-themed token last week sent market capitalization of a few thousand dollars to over $150 million and created massive hype, attracting liquidity from traders and spurring scores of look-alike tokens on other blockchains.

Exit liquidity remains a concern. Veri shows trading pools for pepe coin on decentralized exchange Uniswap hold less than $4 million in available liquidity as of Tuesday, so a sudden sale by a top holder is likely to immediately dunk prices.

Trading volumes for pepe on centralized crypto exchanges have ballooned to an average of $300 million daily, but market liquidity remains relatively thin – which may, again, cause a steep drop in prices should a large holder liquidate their holdings.

The wallet holding the largest amount of pepe is sitting on over $1.1 million worth of the tokens after acquiring them for a few hundred dollars worth of ether, veri from Flipside Crypto complied by @deebs_defi shows. The same wallet also owns $1.1 million in shiba inu (SHIB) and $1 million in floki (FLOKI), suggesting the owner is an active memecoin trader. The investor holds $43,000 worth of ether.

While this wallet holds the largest amount of pepe in a single place, other top holders may have spread their holdings across several wallets.

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Data from Lookonchain shows five wallets connected to ‘pepecexwallet.eth,’ which received funds from the Pepe deployer contract, cumulatively purchased over 8.87 trillion PEPE after issuance for just $385, selling the stash days later for over $1.23 million.

These sales were mainly made through Uniswap, and a smaller amount was sold on crypto exchange Huobi.

Crypto analysts on Twitter, such as @louround_, said last week that almost 3% of pepe holdings are connected to each other, citing veri from wallet analysis tool Bubblemaps, accounting for $3.78 million worth of the tokens.

“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,” @louround_ tweeted.

As of writing time on Tuesday, crypto exchanges MEXC Küresel and Huobi are the largest commercial pepe holders, with over 5.5% of the supply held.

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PEPE trades at $0.000000233615 at writing time on Tuesday, down 22% in the past 24 hours, as per CoinGecko veri.

Edited by Sheldon Reback.

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