Blockchain analytics are challenging the popular narrative that the memecoin Pepe was launched “for the people.” Recent investigations reveal that nearly one-third of its initial token supply was controlled by a single entity, which contributed to significant early selling pressure.
According to Bubblemaps, a blockchain data visualization platform, approximately 30% of Pepe (PEPE) tokens were concentrated in one wallet cluster at launch in April 2023. The platform stated on X that investors had been misled about the token’s distribution.
This particular wallet group sold $2 million worth of PEPE tokens just one day after launch, exerting substantial downward pressure on the price and preventing it from exceeding a $12 billion market cap milestone, Bubblemaps reported.
This high concentration contradicts Pepe’s original marketing as a “coin for the people.” The project’s official website claimed it launched quietly without any presale allocations or preferential distributions.
Source: Bubblemaps
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The value of PEPE dropped by 5.7% over the last 24 hours and has declined more than 81% over the past year according to CoinMarketCap statistics.
The team behind PEPE did not respond to requests for comment from Cointelegraph.
One-year price chart for PEPE/USD. Source: CoinMarketCap.com
Adding further concerns for investors, Pepe’s official website was compromised earlier this December. It briefly redirected visitors to a malicious inferno drainer—a phishing scam tool used for stealing wallets and conducting social engineering attacks.
Despite these setbacks, some traders profited handsomely from trading PEPE tokens. In March alone, an investor turned an initial stake of $2,000 into $43 million by holding through volatile swings. This trader realized gains exceeding $10 million even after enduring a steep 74% drop from PEPE’s all-time high before exiting their position.
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A forensic approach exposes insider-dominated launches
Bubblemaps’ Time Travel feature—introduced in May—is an advanced forensic analytics tool designed for Web3 users who want to trace historical token distributions. Its purpose is to identify early insider activities or coordinated accumulation patterns aimed at preventing rug pulls and memecoin scams.
This tool helps detect suspicious projects where large portions of supply are held within few wallets—often precursors to scams involving liquidity removal or mass sell-offs that crash prices and leave holders with worthless assets.
Bubblemaps has been instrumental in revealing dubious wallet behaviors linked with various memecoins such as Melania Token and several counterfeit Eric Trump-themed coins.
A notable example includes this year’s devastating rug pull involving WOLF token—an asset inspired by Wolf of Wall Street—that plummeted nearly 99% within hours on March 16th wiping out almost $42 million in market capitalization overnight.
Source : Bubblemaps
The creator behind WOLF is Hayden Davis—the co-founder responsible also for Official Melania Meme (MELANIA) and Libra tokens.
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