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As PEPE prices recover from a 76 percent drop from their May 2023 peaks, a trader holding more than $10 million worth of Pepe Coin (PEPE) and Milady Meme Coin (LADYS) meme tokens is reportedly unable to sell because both projects blacklisted his addresses.
Striking gold on PEPE and LADYS
Data from the analytical platform Scope Protocol shows that the anonymous trader was one of the first buyers of the PEPE and LADYS meme tokens.
Imagine you are profit $10M but can’t sell.
0xaf23 is blacklisted by both $PEPE & $LADYS because bought too early.
he bought 2.52T $PEPE with 0.013 ETH, now these $PEPE worth ~$4.6M
he also bought 290T $LADYS (33% of all) and holds 71T now (~4.9M).https://t.co/XzsxRdAMCY pic.twitter.com/7rWZnw6oMQ
— 0xScope (🪬 . 🪬) (@ScopeProtocol) May 11, 2023
The two meme projects experienced a huge resurgence, catapulting the first owners into the realm of millionaires.
The records show that the trader purchased 2.52 trillion PEPE tokens for just 0.013 ETH. His stash rose to $4.6 million.
The trader also bought 290 trillion LADY tokens, or about 33% of the total supply.
As of May 11, about 71 trillion LADYs worth more than $4.9 million were stored on a blacklisted address.
However, with two projects blocking his addresses, the trader cannot liquidate and make a profit.
According to unconfirmed rumors, the trader is linked to a Maximum Extractable Value (MEV) bot.
Despite this setback, a trader’s inability to sell their PEPE and LADYS tokens could support prices given the amount the trader is holding. A block sale could have a negative impact on liquidity.
The spike in PEPE, albeit without any benefit, indicates community greed and an unwillingness to miss out on FOMO.
MEV bots raise concerns
Concerns about the impact of MEV bots on the security and fairness of Ethereum have risen as they could impact gas fees, pre-transactions, and overload the network, especially as the meme token craze continues.
The blacklisting of addresses of traders suspected of being MEV bots coincides with a surge in PEPE and LADYS trading activity on Ethereum.
An example is the infamous MEV bot named Jaredfromsubway.eth, which uses meme token merchants for profit. Due to the number of trades made amid the meme token craze, the bot is one of the biggest sources of high fees in Ethereum.
As the volume of trade in meme tokens grows, more bots will likely be involved to capitalize on this popularity.
Already, CoinMarketCap data from May 14th shows that PEPE’s average daily volumes are in excess of $520M, almost matching its $721M market cap. Meanwhile, LADYS’s daily sales reached $74 million and its total market capitalization rose 30% to $80 million.
There have also been signs of suspicious activity and addresses in the LADY token ecosystem, which previously raised some concerns.
Nine addresses transferred 26 trillion LADY to exchanges, which is equivalent to $3.7 million. Previously, these addresses received ETH from KuCoin at the same time before buying LADYS.
If you notice these suspicious addresses, then you can predict the drop of $LADYS in advance.
9 addresses transferred a total of 26T $LADYS ($3.7M) to exchanges.
Is it a coincidence that the price of $LADYS drops after each transfer?https://t.co/isFU2u9zVK pic.twitter.com/uoa8tBFWUA
— lookonchain (@lookonchain) May 12, 2023
In addition, they transferred all their assets to new addresses. Interestingly, each transfer coincides with a drop in the price of LADYS.
Users have been advised to keep an eye on these whale accounts as their activities may affect prices.
If you bought $LADYSyou should pay attention to these 42 suspicious addresses.
They hold 205T $LADYS ($19M), 23% of the total supply.
They all received $ETH from #KuCoin at the same time and bought $LADYS.
And also transferred all $LADYS to new addresses 10 hrs ago. pic.twitter.com/EftRtfRZD7
— lookonchain (@lookonchain) May 11, 2023
