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Pepe Coin Funding Scheme Hints at Coordinated Insider Effort

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Pepe Coin Funding Scheme Hints at Coordinated Insider Effort

In an exclusive investigation, Sasha, the co-founder of Arcanum Ventures delves into the mysteries surrounding Pepe, one of the most sensational meme coins of recent times. Building on his previous report, he meticulously scrutinized the early on-chain transaction data, unveiling a startling revelation. Shortly after the complete token supply of Pepe was minted, a staggering 93% of these tokens were swiftly transferred to the Liquidity Pool (LP), aligning seamlessly with the promises made on the project’s official website.

Immediately following the massive token migration into the Liquidity Pool, a flurry of buy transactions swept through the Pepe coin ecosystem, totaling approximately half a percent of the entire token supply. The rapid succession of these transactions, occurring within an exceptionally brief timeframe was disturbing.

Newly Created Wallets

The most intriguing discovery lay in the depths of the on-chain data – a multitude of these transactions were orchestrated by newly created wallets, devoid of any prior transaction history. This puzzling development raises questions about the identities and intentions of these anonymous investors who seemingly materialized out of thin air to participate in the Pepe coin phenomenon.

This pointed towards a meticulously coordinated insider operation that may have been at play, aimed at swiftly acquiring a substantial chunk of Pepe token supply upon its integration into the Liquidity Pool, with the intent to cash in on substantial gains once Pepe garnered heightened hype and speculation.

The meticulous analysis involved a thorough examination of Pepe’s price history, closely aligned with the token transactions that caught the attention. Astonishingly, each of the 57 newly created, previously unknown wallets invested around $50 in Pepe, only to later reap extraordinary profits, nearing a staggering quarter of a million dollars per wallet.

Massive Gains

As per the co-founder, the implications are nothing short of jaw-dropping, as this potentially coordinated effort suggests that a single individual or a well-coordinated group might have pocketed over $10 million within a mere one-week timeframe. The revelation of this massive windfall underscores the captivating and, at times, enigmatic world of cryptocurrency.

In the ongoing quest to unveil the identities behind these intriguing insiders, Sasha aims to construct a character profile based on their on-chain activity, transaction history, and possible interactions with other assets.

Before he delved into the fascinating world of these enigmatic figures, he addressed a critical question that might have crossed many minds: How did these seemingly new wallets, with no prior assets, execute their Pepe coin purchases? The answer lies in the existence of funding transactions that provided them with the essential Ethereum (ETH) needed for their acquisitions.

Diving Deeper

The next investigative step was to explore these funding wallets, which took Sasha even deeper into the labyrinth of on-chain data, potentially shedding more light on the coordination he suspected.

In the relentless pursuit of identifying the individuals behind these intriguing transactions, Sasha turns to Etherscan, a valuable tool for unraveling the enigma. He then took a random wallet address from on-chain data, and uncovered a compelling clue. On April 14th, around 8:00 PM GMT, this wallet executed its first recorded transaction—an acquisition of Pepe. This timestamp served as the entry point for uncovering the probable funding transaction that preceded it.

Upon further examination of Ethereum transactions, Sasha identified a transaction just 20 minutes prior to the Pepe purchase, where 0.06 ETH flowed into the wallet. This seemingly innocuous incoming ETH could be the key to understanding the origins of these acquisitions. Notably, it appears that “Fixed Flow,” a protocol within the Ethereum blockchain, was involved. This might have been employed by the insider to obscure the funding’s source, creating a figurative curtain over the transaction’s paper trail.

The investigation then extends to encompass a multitude of new wallet addresses. These addresses were analyzed using a transaction behavior workbook specifically designed for this purpose. This versatile tool enabled the investigator to simultaneously assess numerous wallets, filter them by their primary funding asset, and pull relevant data from various on-chain API integrations.

As a result, the investigation could ascertain the number of transactions, both incoming and outgoing, for each wallet, as well as the respective volume of ETH. This analysis yields valuable insights, allowing to map out the flow of Ethereum across these wallets and link them to potential funding sources. The culmination of this exhaustive investigation leads to a comprehensive dashboard, where all pieces of the puzzle begin to fall into place.

Critical Golden Hour

The complexity of this investigation deepens as the co-founder discovers that all 57 original wallets that snapped up Pepe tokens during the critical “golden hour” were funded by just eight original sources. This revelation is nothing short of astonishing. Adding another layer of intrigue, it becomes apparent that these funding transactions occurred within a remarkably brief two-hour window right before Pepe’s integration into the Liquidity Pool.

Looking closer at these funding sources, the investigator highlights that 13 wallets were powered by the Fixed Flow hot wallet, which, as mentioned earlier, is a protocol known for its relative obscurity. Its limited popularity and perceived risks make it a choice that stands out. Additionally, 32 wallets were supplied by the Uniswap universal router, a protocol within the Uniswap ecosystem that enhances transactional flexibility. It enables funds to flow from one wallet to another, potentially concealing the origin of the transactions. These findings provide further credence to the notion that these coordinated purchases might indeed have been executed by insiders tied to Pepe’s creation.

Adding to the intrigue, the investigator notices a couple of ENS designations in the mix. For instance, he came across “beautifulbabbies.eth” and “dancebabbiedance.eth,” which, despite their peculiar names, offer vital clues. The similarity in names, incorporating “babbies” (a misspelling of “babies”), suggests a connection between the wallet owners. This points to a coordinated effort in the early stages of Pepe’s launch, possibly implicating these individuals as insiders or founders of the project.

Mysterious Individuals Associated

This intricate web of coordination is pushing the boundaries of the investigation. As the investigator delves even deeper into the on-chain transaction data, he is poised to uncover more about the mysterious individuals associated with Pepe, including their operating methods and intentions.

A key focal point in the investigation lies in the ERC20 token transfers, providing the investigator with invaluable information. The transaction history reveals a diverse array of assets, some of which may be microcap altcoins, given the volume of tokens being exchanged. While the specifics of these tokens may not be familiar, their movements provided insights into the target’s financial activities.

To understand the bigger picture, the investigator ventured into the communities of crypto Twitter, Telegram, and Discord, where he gauged how these individuals interact and observe the community dynamics. Here, he uncovers the projects they promote, examines the transaction values—ranging from $200 to $20,000—and gauges the financial bracket and risk tolerance of the subject.

Furthermore, he examines the time intervals between their buy and sell transactions, providing insights into their investment horizon. Short-term, rapid trades may hint at pump-and-dump strategies, potentially fueled by insider information or ties to these projects.

Sasha stated that he will carry on with the investigation and come up with more key aspects, where he will delve even deeper into the identities behind these transactions. For now, he concluded an intriguing outlook—this appears to be a coordinated insider transaction campaign, possibly orchestrated by Pepe’s creators. Their interest in engaging with lesser-known altcoins suggests a broader picture of their activities.

In conclusion, the investigator pieced together a preliminary profile of the individuals possibly behind these transactions using simple on-chain data analysis.

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