Just recently, the PEPE token was one of the biggest stars in the memecoin market. At that time, it became a symbol of the memecoin season and 'easy money' for many investors. Meanwhile, on-chain data, which Crypto Degenerates focus on, reveals a completely different side of this project.
Memecoins are high-risk tokens. It's therefore no surprise that one must pay attention to such details.
Most Pepe in the same hands
Token PEPE is one of the largest and most popular memecoins in crypto. At the peak of its popularity, it topped the rankings of the largest cryptocurrencies, with a market cap reaching nearly 12 billion USD at the time. However, like most memecoins, it's easy to criticize this project.
One of the key facts highlighted by Crypto Degenerates is the ownership structure of the PEPE token. Blockchain data shows that the top 100 addresses control around 72% of the total supply. This level of concentration practically means the market can be easily manipulated by a narrow group of major players.
Additionally, the Binance exchange itself holds nearly 22% of all PEPE tokens in its wallets. This means one platform has immense influence over the liquidity and flow of this asset. In times of heightened volatility or market panic, such concentration could lead to sudden price movements.
Crypto Degenerates point out that under these conditions, the narrative of a 'decentralized memecoin' loses real meaning. The market doesn't function like a broad community of investors, but rather as a system dependent on just a few largest wallets.
The mechanism driving the price increases
In their comment, Crypto Degenerates emphasize that the PEPE token is bought based on faith in quick profits. This is a typical mechanism of a speculative market: the influx of new buyers drives up the price, while the largest holders can gradually cash in their gains.
As long as new investors continue to enter the market, counting on 'the next million,' the price remains stable or rises. The problem arises when demand weakens—then, the excess supply from large wallets can quickly lead to sharp declines.
Although this model can be applied to most existing cryptocurrencies, it is particularly crucial for memecoins when it comes to valuation. For technological projects, price fundamentals may stem from the project's technical aspects. However, when it comes to memecoins, such fundamentals are virtually nonexistent.
As Crypto Degenerates write, the key in this game is not to be the 'last link' left holding tokens when sentiment shifts. That's precisely why they describe PEPE as a 'machine for shaving dreamers'.
Can the Pepe token still rise?
Importantly, Crypto Degenerates do not claim that the PEPE token cannot rise further. On the contrary—while interest and speculative demand remain, further price increases are possible. However, in their view, investors should be aware that this is not a market based on fundamentals, but rather on short-term capital flows and emotions.
In practice, this means PEPE functions more like a trading instrument than a traditional investment. Profits are possible, but the risk of a sudden trend reversal remains very high—especially given such a high concentration of supply.
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