The rise of $PEPE, a frog-themed meme coin, has been making waves in the cryptocurrency market. While larger altcoins and EdaFace have been slowing down, $PEPE has attracted the attention of crypto traders due to its reported market capitalization of approximately $102.3 million and a daily traded volume of around $40 million. However, on-chain data reveals some troubling indicators that traders should take note of in the coming days.
Who Controls the Supply of $PEPE?
According to a study conducted by Twitter user @apes_prologue, a group of crypto traders holding meme coins like Shiba Inu and Floki controls roughly 10% of the total $PEPE supply.
Related: Shiba Inu Price Prediction 2023, 2024, 2025, 2026 – 2030
These traders hold $9.2 million worth of PEPE coins. Should they decide to liquidate their holdings, the underlying price would crash, given the thin liquidity available on-chain.
As a result, current holders must monitor the activity of these whales, as even a 10% sell-off would be enough for the token to plummet completely.
Also Read: Is PepeCoin Worth Investing? What Next For $PEPE Price ? – Coinpedia Fintech News
The Risks of Holding $PEPE
Ex-hedge fund analyst @Louround_ has stated that a single $PEPE holder could cause the underlying value to plummet by more than 99% by exterminating the entire on-chain liquidity.
As a result, holders of $PEPE are advised to approach the meme coin with care, as the whales could dump the token and cause extreme capitulation. On-chain data shows that the $PEPE meme coin has a liquidity of approximately $2.5 million.
“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, current holders must monitor the activity of these whales,” the analyst noted.
While the rise of $PEPE has generated excitement among crypto traders, it’s important to note the risks involved in holding the meme coin. With the control of the supply in the hands of a few traders and the thin liquidity available on-chain, a significant sell-off could cause the token to plummet. Current holders are advised to monitor the activity of these whales and proceed with caution.
