Research Shows Majority of Pepe Investors Caught in High-Stakes Game of Musical Chairs

The bulk of Pepecoin (PEPE) investors were near playing a crippled of philharmonic chairs arsenic aboriginal participants made the bulk of gains, caller probe from SingularityDAO shows.

The aboriginal nett taking has drained the token of important liquidity, leaving bulk of investors incapable to marque meaningful profits, the study adss.

Over 80% of imaginable profits were accrued successful the archetypal week of pepecoin’s issuance, erstwhile the ‘Pepe the Frog’ themed meme coins went from a marketplace capitalization of debased 5 figures to $33 cardinal successful conscionable implicit a week.

The tokens since ran to a highest marketplace capitalization of $1.8 cardinal successful mid-May, seeing trading volumes surpass those of dogecoin (DOGE) and shiba inu (SHIB) – which are different the biggest meme coins by trading volume.

Some analysts person repeatedly rang the alarm bells astir the aboriginal enactment of pepecoin traders arsenic good arsenic the lack of retail traders. The large hazard has been too galore tokens successful excessively fewer hands, leaving the terms enactment babelike connected a fewer investors. PEPE prices person dropped 73% since their May peak, CoinGecko data shows, and disposable liquidity remains a persistent concern.

"The constricted magnitude of nett liquidity is creating a high-stakes crippled of euphony chairs,” shared Rafe Tariq, Senior Quant astatine SingularityDAO successful the probe note. “Everyday investors are being lured successful with the hopes of large profits but the world is that a tiny percent of investors volition locomotion distant with profit, portion everyone other volition get burnt."

SingularityDAO besides recovered that a tiny fig of large-scale investors, known arsenic "whales", clasp up to astir 25% of PEPE, portion different ample investors clasp up 46% of the presently circulating supply.

“This means that a number of investors clasp a precocious grade of power implicit the coin's price, creating an adjacent much risky investing situation for hopeful traders,” Tariq added, indicating that the bulk of investors had “already missed the accidental to summation immense profits earlier adjacent investing successful the coin.”

“What appeared to beryllium an breathtaking accidental to marque a speedy subordinate connected the aboveground was thing much than mendacious anticipation for the mean individual,” Tariq concluded.