Market Rally: Over 96% of Pepe (PEPE) Holders Are in Profit

More than 96% of PEPE Holders in Profit

After a month-long rally, Pepe (PEPE) has emerged as the most profitable token among leading meme coins, with over 96% of its holders currently in profits, according to data from IntoTheBlock. The surge in PEPE’s price propelled the meme coin to an all-time high (ATH) of $0.00001718 on May 27.

Following closely behind PEPE in profitability is FLOKI, with approximately 89% of its holders enjoying positive returns, according to IntoTheBlock’s chart. While PEPE is down by 21.5% from its ATH, this percentage pales in comparison to the plunges experienced by other meme coins. Notably, Shiba Inu (SHIB) and Dogecoin (DOGE) are down 78.5% and 70.5% from their ATHs, respectively.

However, data provided by the on-chain analytics platform Santiment indicates a decline in PEPE exchange inflow and outflow over the past three days. Approximately 4.31 trillion PEPE tokens have entered exchanges, while 4 trillion coins have exited, resulting in a net inflow of around 310 billion Pepe tokens.

This trend suggests that some holders are experiencing fear, uncertainty, and doubt (FUD) based on the current market conditions. Furthermore, Santiment’s data revealed a decline in the PEPE Relative Strength Index (RSI) from 77 to 67 over the past three days.

Despite this decrease, the RSI still indicates overbought conditions, signaling a potential move toward a consolidation zone. Should the RSI drop below 50, a steady price hike for PEPE should be expected.

Nigerian Singer in Alleged Memecoin Rug-Pull Scam

Meanwhile, Nigerian music superstar Davido is embroiled in an alleged rug-pull scheme involving a memecoin bearing his name. Davido, with a massive following of over 15.3 million on social media platform X and 7.9 million monthly listeners on Spotify, launched the “DAVIDO” memecoin amidst much fanfare.

However, what seemed like a promising venture quickly turned sour as investors witnessed a dramatic collapse in the token’s value. According to reports, the memecoin was launched on the popular Solana memecoin generator pump.fun.

Initial transactions saw 7.5 SOL transferred to the token address, providing startup capital for the project. Subsequently, a portion of these funds was used to purchase 203 million DAVIDO tokens, constituting a significant portion of the total supply.

Davido wasted no time in promoting the token to his legion of followers on X, encouraging them to hold onto their investments with the expectation of a $30 million market cap. However, 11 hours after the launch, on-chain data showed that the singer sold a substantial portion of his holdings, resulting in a sharp decline in the token’s value.

Thus, the price of DAVIDO plummeted by over 90% from its peak, leaving many investors reeling from significant losses. Lookonchain, a chain tracker, also identified suspicious token transfers to an address labeled “dead1111…1111,” raising further concerns about the legitimacy of the project.

Celebrity-backed Tokens And Scam Allegations

This incident is part of a broader trend involving celebrities and memecoins, with similar scams plaguing the industry in recent weeks. American media personality Caitlyn Jenner’s JENNER token and Australian musician Iggy Azalea’s IGGY coin were launched on the Solana network but have suffered similar fates to DAVIDO’s, causing many to allege that they’re pump-and-dump schemes.

Meanwhile, actor and Instagram celebrity Sahil Arora has been accused of exploiting celebrities’ lack of understanding of the cryptocurrency market for personal gain. Recently, a magazine report disclosed that Arora listed a list of celebrities whom he purportedly could enlist for promotional activities.

The list, provided by a manager at a cryptocurrency exchange, featured endorsement fees ranging from $6,000 to $315,000 for notable figures like Davido, Justin Bieber, and Lindsay Lohan. This suggests that Arora might have played a role in the recent rug-pull episode associated with Davido’s memecoin.