Famous trader James Wynn strongly promotes the Meme coin YEPE, exposing an "insider trading" scandal and warning of speculation risks on the BNB chain.

The BNB chain Meme coin Yellow Pepe (YEPE), associated with well-known crypto trader James Wynn, faced a severe setback after experiencing a rise of over 400% in just a few days, due to insiders starting to sell off, resulting in a price big dump of 25%. On-chain data shows that there have been serious danger signals since the project's issuance: insiders may control over 60% of the token supply. As of October 9, insiders have profited $1.4 million through selling, but still hold over 50% of the token supply, indicating that future prices may still face significant dumping pressure. This event serves as a reminder to investors to be wary of potential Pump and Dump projects as the Meme coin craze resurges, especially on the BNB chain.

Insiders Start to Cash Out: YEPE Price Faces "Dump" Heavy Decline

The price volatility of the Meme coin YEPE is completely dominated by insider activities, showing extreme centralization risks.

· The trajectory of big rises and falls: This Meme coin based on the BNB chain achieved a rise of over 400% within just a few days after its launch, driven by market frenzy. However, on October 9, the price of YEPE plummeted from 0.4% to 0.3% under the circumstances of insider selling, with a drop of up to 25%.

· The Influence of Wynn: The main driving force behind the surge in YEPE's price is the endorsement of the high-profile trader James Wynn. Wynn is known for his high-leverage trading and significant profit and loss volatility. He shared the YEPE contract address on platform X and claimed, "YEPE is taking off," "the market has spoken," directly guiding his followers to follow suit in investing.

On-chain data reveals risks: 60% concentration creates a time bomb

On-chain analysis has long revealed the enormous risks hidden in the YEPE project, indicating the inevitability of a price collapse.

· Early high concentration: The blockchain analysis platform Bubble Maps issued a warning on October 5th (the day YEPE was launched) that insiders hold more than 60% of the total supply of YEPE. Such a high concentration of tokens is often seen as a significant "danger signal" (Red Flag) because it implies that a few individuals have overwhelming control over the token's price.

· Insider dumping realization: As expected, this highly concentrated risk began to materialize on October 8. Insiders started to sell their YEPE positions and made a profit of 1.4 million dollars the next day.

· Ongoing selling pressure threat: Despite insiders having conducted a round of large-scale dumping, Bubble Maps shows that they currently still hold over 50% of the Token supply. This means that the circulating market of YEPE remains highly fragile and may face further selling pressure from insiders at any time.

Warning on Meme Coin Season: "Suspicious Projects" in the Speculative Frenzy

The recent YEPE incident has sounded the alarm for the recovering Meme coin season, especially for the high-risk BNB on-chain ecosystem.

· Risk and reward coexist: On-chain data clearly shows the high-risk characteristics of Meme coin speculation. Although it can achieve astonishing rises in the short term, if the project is dominated by insiders from the beginning, it often ends in a "Pump and Dump."

· The trap of "expert" endorsements: In this case, the public endorsement of a well-known trader is key to attracting retail funds, but investors need to be aware that high-profile promotions do not eliminate the inherent structural risks of a project, especially in the highly leveraged and speculative Meme coin space.

· Investment Advice: For Meme coin investors seeking high risk and high returns, on-chain transparency is crucial. It is important to carefully examine token allocation data provided by platforms like Bubble Maps before investing, and to avoid projects with overly concentrated tokens during the initial issuance phase to prevent becoming a "liquidity exit" bag holder.

Conclusion

The big dump of the YEPE Meme coin is a classic case of "insider trading" in the speculative frenzy of BNB chain. Although the Meme coin market seems to be warming up, projects like YEPE that are controlled by a few insiders who hold the majority of the supply essentially represent a "game" against retail investors. This rapid rise and fall cycle highlights the importance of transparent on-chain analysis for risk identification in the decentralized space, where strong regulation is lacking. Investors must always prioritize fund security and Token allocation risks while chasing high returns.

This article is for informational purposes only and does not constitute any investment advice. The crypto market is highly volatile, and investors should make decisions with caution.