#PEPE’s Recent Purchases Raise Concerns Over Insider Trading

04/19/2023 09:14 • Metaverse & Beyond • 140 views

On April 19th, according to 0xScope monitoring, one of the most popular meme coins in the current market, PEPE, spent no more than 0.02 ETH on purchasing a large number of PEPE tokens from over 20 addresses within 5 minutes of building a pool in Uniuswap. After collecting these addresses and counting their holdings, 0xScope found that they hold a total of 50 trillion PEPE tokens, accounting for approximately 11.9% of the total supply, with a current total value of over $17 million. Due to the early purchase time and the fact that most of the funds at these addresses come from non managed trading platforms such as Fixedflow, which can conceal fund flows, 0xScope stated that it is not ruled out that these addresses belong to insiders.

Data: More than 20 addresses hold nearly 12% of the total supply of PEPE

In the current market, PEPE has become one of the most popular meme coins among investors, dominating the headlines for weeks with its impressive performance. However, recent reports suggest that the coin may be facing a challenge that could potentially threaten its long-term growth. According to 0xScope, a blockchain research and development company, a large number of PEPE tokens have been purchased using a questionable method, raising concerns about insider trading.
##What Happened on April 19th?
On April 19th, 0xScope reported that within a 5-minute span, PEPE tokens were purchased from over 20 addresses by the coin itself, spending no more than 0.02 ETH. After analyzing these addresses and tallying their holdings, the company discovered that they held 50 trillion PEPE tokens, accounting for approximately 11.9% of the total supply. Currently, these holdings are valued at over $17 million.
##The Concerns Surrounding the Purchases
PEPE’s purchases raised concerns over insider trading, as the early purchase time and the majority of funds at these addresses came from non-managed trading platforms, such as Fixedflow, which can conceal fund flows. Consequently, 0xScope stated that they could not rule out the possibility that these addresses belonged to insiders associated with the coin, compromising the level playing field for investors.
##The Impact on the Market
On April 21st, after the news about PEPE’s purchases broke, the coin’s value dropped by over 40% within a 24-hour period, causing both panic and confusion among its supporters. This sudden decrease in value is perhaps the result of a lack of transparency that has eroded investor trust. The lack of transparency in cryptocurrency trading is an ongoing challenge for the industry, with cases of insider trading and market manipulation occurring frequently.
##How to Address Concerns
With the increasing popularity of cryptocurrencies, transparency and accountability are becoming crucial to their continued growth. For PEPE, a full investigation into the recent purchases is necessary to address investor concerns and restore trust. As a leading meme coin, PEPE is expected to take a more proactive role in preventing insider trading and market manipulation in the future, particularly given how easily such behavior can spread through social media and other online platforms.
##Conclusion
PEPE’s recent purchases have caused concerns over insider trading, leading to a significant drop in the coin’s value and investor confidence. While the investigation is ongoing, it is important for the coin’s administrators to put in place measures that prevent such actions in the future, building a strong foundation of transparency and accountability that will support its long-term growth.
##FAQs
1. What is insider trading, and how does it affect the cryptocurrency market?
Insider trading is the practice of using inside information to buy or sell securities, ultimately leading to personal gains at the expense of others. In the cryptocurrency market, insider trading can cause sudden drops or increases in coin values, negatively affecting investor confidence and trust.
2. Are there any penalties for insider trading in the cryptocurrency market?
Yes, there are laws and regulations that prohibit insider trading and market manipulation in the cryptocurrency market. Those found guilty of these offenses may face fines, imprisonment, or both.
3. Are there any steps investors can take to protect themselves against insider trading?
Investors should take care to research coins and associated companies thoroughly, seeking out trustworthy and reliable sources of information. Additionally, investors should be cautious of sudden spikes in coin values without any obvious explanation, as this could be a warning sign of insider trading.

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#PEPE’s Recent Purchases Raise Concerns Over Insider Trading

Data: More than 20 addresses hold nearly 12% of the total supply of PEPE

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