- The largest holder of pepe tokens is holding over $1 million worth of the tokens, raising concerns about too much of the coin being in too few hands.
- The frenzy around pepe token caused its market capitalization to go from a few thousand dollars to over $150 million in just a few days.
Pepe token holder raises concern about concentration of tokens
One wallet is holding over $1 million worth of pepe tokens, the largest amount held in a single place, raising concerns about the concentration of the meme coin. Analysts are worried about the behavior of investors who bought large amounts of pepe after its issuance on the Ethereum blockchain, turning about $1,200 of initial capital into over $9 million in just a few days.
The frenzy surrounding the frog-themed token sent the coin’s market capitalization to over $150 million, attracting liquidity from traders and spurring scores of look-alike tokens on other blockchains.
Liquidity remains a concern for pepe token
Trading pools for pepe coin on decentralized exchange Uniswap hold less than $4 million in available liquidity as of Tuesday, and so a sudden sale by a top holder is likely to hit prices immediately. Although trading volume for pepe on centralized crypto exchanges has ballooned to an average of $300 million daily, market liquidity remains relatively thin, which may cause a steep drop in prices should a large holder liquidate their holdings.
The behavior of top holders of pepe token
The wallet holding the largest amount of pepe is also an active meme-coin trader, owning $1.1 million in shiba inu and $1 million in floki, among other cryptocurrencies. Other top holders of pepe may have spread their holdings across several wallets. Additionally, almost 3% of pepe holdings are connected to each other, which causes a major risk for the market and holders as those wallets hold a token value superior to all the on-chain available liquidity.
Crypto exchanges MEXC Global and Huobi are the largest commercial pepe holders, with over 5.5% of the supply held.