The largest holder of the pepe coin (PEPE) is holding more than $1 million worth of the token, causing concentration risks in the short-term future of the memecoin. Concerns have been raised about the behavior of investors who bought relatively large amounts of pepe after its issuance on Ethereum, turning about $1,200 of initial capital to over $9 million in just a few days. The frenzy surrounding the frog-themed token last week sent market capitalization of a few thousand dollars to over $150 million and created massive hype, attracting liquidity from traders and spurring scores of look-alike tokens on other blockchains. However, exit liquidity remains a concern, and a sudden sale by a top holder is likely to immediately drive prices down. The wallet holding the largest amount of pepe is sitting on over $1.1 million worth of the tokens after acquiring them for a few hundred dollars worth of ether. While other top holders may have spread their holdings across several wallets, almost 3% of pepe holdings are connected to each other, accounting for $3.78 million worth of the tokens, causing a major risk for the market and holders. PEPE trades at $0.000000233615 at writing time on Tuesday, down 22% in the past 24 hours.

(By Shaurya Malwa)