Memecoin Mania ??

Memecoins had what we like to call “15 minutes of fame” last week, with $PEPE?$GENSLR?making waves with 3,000x gains in just 7 days. Someone bought Pepe for $300 and came up for air with $1 million on paper. But there’s an obvious flaw in the prospect of actually cashing that kind of money out, and that is liquidity. The truth of the matter is that even though these gains appear in that Pepe holder’s wallet, they can’t be realized because there aren’t enough funds on exchanges to facilitate such a massive sale.

In fact, since the rise of Pepe coin last week, etherscan sleuths have uncovered an interesting conundrum: almost 5% of the total supply of Pepe are connected with each other. 5% of the supply accounts to $140 million, which is more than all the available liquidity on chian.?

The Twitter account?An Ape’s Prologue?analyzed the distribution of trades on Uniswap V2 and found that some Pepe wallets were able to turn a few hundred dollars into a few million, but the timing of the buys have an interesting connection.?

A couple of freshly-funded wallets bought the pepe coin almost simultaneously within minutes of the token’s launch. In total they bought almost 10% of the supply.?

Holders are now being cautioned that these early wallets (and when I say early I mean wallets that bought tokens last week ??) put everyone at risk. The amount they own outweighs the total value of the ecosystem, so if they sell the price could dump.

Have fun, but beware the pitfalls of memecoins, BitSquad.