A recent on-chain data analysis has cast doubt on the narrative of the fair launch of PEPE, suggesting that one entity controlled a large part of the tokens. Visualization platform Bubblemaps claimed on Wednesday that almost a third of the initial supply was concentrated in few hands at the start. According to their findings, this situation contradicts the promise of an equitable distribution for the community.
Data indicates that approximately 30% of the token supply was intentionally bundled during the project’s launch in April 2023. Likewise, the same wallet cluster sold 2 million dollars worth of PEPE just one day after its debut. This early selling pressure prevented the asset from surpassing the 12 billion dollar market capitalization milestone.
On the other hand, this concentration of the genesis supply clashes directly with Pepe’s original branding as a “coin for the people.” The project’s website claimed the token launched in stealth mode with no presale allocations, which Bubblemaps now qualifies as a lie to investors. Furthermore, PEPE’s price has fallen more than 81% in the past year, generating uncertainty.
Forensic tools unveil historical token manipulation
These findings were uncovered thanks to Bubblemaps’ “Time Travel” feature, a forensic analysis tool launched in May to audit histories. This technology allows Web3 users to reconstruct the historical distribution of tokens, detecting early insider activities or suspicious coordinated accumulations. In this way, it seeks to prevent scams and rug pulls that leave investors with worthless assets.
Additionally, investor concern worsened when Pepe’s website was exploited earlier in December by malicious actors. Users were temporarily redirected to an “inferno drainer,” a scam tool used for phishing and social engineering attacks. Despite these risks and the price drop, some traders managed to make millions of dollars in profits.
Can on-chain analysis tools restore trust in memecoins?
Detecting tokens with a large portion of the supply concentrated in few wallets is crucial to avoid market manipulations and sudden price collapses. Bubblemaps has played a key role in uncovering suspicious activities in multiple memecoins, including those linked to public figures or viral trends. Transparency becomes an indispensable requirement for the survival of these volatile assets.
Finally, the PEPE case serves as a warning about the importance of verifying token distribution before investing in emerging cryptocurrencies. Although the market continues to offer high-yield opportunities, the presence of malicious internal actors remains a constant threat to liquidity. Investors must remain alert to discrepancies between the official narrative and real on-chain data.
