$PEPE: Mysterious Whales
The memecoin surged by 1000x in just 4 days, making some users go from rags to riches. We've spotted a few wallets that, with an average cost of 0.61 $ETH ($1210), managed to make over $9M - a 7500x return. However, the timing of the buys is curious:
When analyzing the distribution of trades on Uniswap V2, we spotted some unusual activity. A group of freshly funded wallets bought $PEPE within just a few minutes after the token started trading, and are still holding them. Together, they control almost 10% of the supply.
First, a group of seven wallets funded from the Fixed Float exchange purchased a total of 17.7 T $PEPE with an average cost of 0.34 $ETH, and are now facing a $5.5M unrealized profit
Second, comes two wallets funded from the ChangeNOW exchange. They've bought a total of 5T $PEPE tokens at an average price of 0.1 $ETH, sitting at a $1.5M portfolio value.
Third, an entity, that was initially funded from ByBit and then spread 0.17 $ETH across four wallets, bought a total of 6.2T tokens and currently sees a $2.2M profit.
This behavior raises questions about whether these wallets belong to insiders or the dev team, as not only did they have impeccable timing, but they are also holding a considerable amount after a significant run of 1000x.
It is important to note that, due to the thin liquidity available on-chain, should they sell even 10% of their holdings, it would be enough for the token to plummet completely. Hence, it is crucial for current holders to monitor the activity of these whales.
In conclusion, although it's impossible to affirm these wallets belong to insiders, their behavior definitely raises questions. It wouldn't be surprising if confirmed, given the nature of memecoins and their history.
On the other hand, it is also impressive that these wallets demonstrate strong conviction by holding onto their positions even after a massive 1000x run.