PIPPIN Surge Insider: Solana On-Chain Meme Coin Manipulated by Whales, 80% Supply Concentration Sparks Collapse Concerns

Recently, the on-chain Meme Coin PIPPIN on Solana experienced an extremely dramatic rollercoaster rally, with its price soaring to a new high of over $0.50 before rapidly falling back. The blockchain analytics platform Bubblemaps revealed that up to 80% of the token supply appears to be controlled by insiders and related wallets, with a market cap of approximately $380 million, sparking strong concerns about market manipulation and potential price control. Despite a surge in open interest and a short squeeze, bearish divergence in technical indicators and highly coordinated whale behavior cast a shadow over this frenzy. This article will deeply analyze the on-chain truths and market risks behind PIPPIN’s abnormal volatility.

PIPPIN Price Movements: Market Narratives Behind the Surge and Flash Crash

Against the backdrop of Bitcoin and the entire crypto market declining by about 4% respectively, PIPPIN’s recent performance has been an “outlier.” Since November 21, its price surged over 2000%, achieving an astonishing 20x increase, and on December 16, it briefly broke $0.52, setting a new all-time high. This countertrend surge quickly drew market attention, especially as other AI proxy tokens generally declined about 30% over the past month, making PIPPIN’s independent rally particularly conspicuous.

However, the crazy rise did not last. Latest data shows that within about 2 hours after reaching the high, PIPPIN plummeted roughly 30%, with the current price around $0.372 and a total market cap of about $365 million. This sharp volatility reveals the fragility of market sentiment. Part of the previous rally was driven by short covering in the derivatives market. Since over 65% of traders bet on a quick reversal, large short positions were built up, and as the price continued upward, a cascade of liquidations was triggered. In just 24 hours, PIPPIN-related liquidations reached $3.3 million, making it one of the most liquidated assets after Bitcoin.

This series of price actions occurred amid silence from the project team and no significant change in fundamentals. Therefore, the market generally turned to on-chain data to seek the true drivers behind the volatility. Analysis found that its social discussion (Mindshare) surged over 2743% in a week, yet market participants remained highly cautious and suspicious amid the frenzy.

On-Chain Data Reveals: Highly Concentrated Supply and Whale Coordination

The real alarm came from professional on-chain analysis. Bubblemaps released a report on December 16, revealing a shocking fact: up to 80% of PIPPIN tokens may be controlled by insiders and related whale wallets, with a total value of about $380 million. This extreme centralization provides a breeding ground for price manipulation and is the core reason behind panic selling.

The report further uncovered highly suspicious wallet activity patterns. Sixteen wallets with identical behaviors emerged: they have similar sources of funds, receive comparable amounts of SOL, have almost no early trading history, and consistently withdraw large amounts of PIPPIN from centralized exchanges (CEX). Additionally, another group of 11 related wallets holds about 9% of the total supply, with their fund flows and timing highly synchronized, strongly suggesting control by the same entity behind the scenes. This “coordinated operation” differs markedly from retail investors’ spontaneous buying behavior.

Key On-Chain Evidence of Market Manipulation in PIPPIN

Supply Concentration: About 80% of tokens controlled by insiders and related parties

Clustered Wallets: Newly identified 16 wallets with identical patterns + another group of 11 coordinated wallets

Total Control Value: Approximately $380 million

Main Trading Venues: Over 35% of trading volume occurs on Raydium decentralized exchange pairs

Open Interest Peak: About $208 million, with over 65% in short positions

24-Hour Liquidation Volume: $3.3 million, mainly from short liquidations

Another market analysis team, Evening Trader Group, also pointed out via their X platform that this rally was mainly driven by whales accumulating large amounts of tokens in a coordinated manner. Their earlier case study showed 93 wallets controlling 73% of the total supply across three distinct clusters. Current on-chain activity shows no signs of token distribution or fund outflows, but rather points to “organized accumulation,” which alarms investors.

Short Squeeze and Divergence: How Derivatives Amplify Volatility

PIPPIN’s price discovery process resonated strongly with the derivatives market. As the price entered uncharted territory (breaking previous highs), many traders chose to short, betting that the rally would end soon. This caused open interest (OI) to surge from $178 million on December 15 to $208 million, a 16.85% increase. However, despite rising OI, the funding rate was negative, indicating that most of the market was still shorting the token, with futures prices below spot prices.

This extreme divergence created perfect conditions for a short squeeze. As whales in the spot market kept buying on Raydium, PumpSwap, and other Solana DEXs to push the price higher, highly leveraged short positions were forced to cover, further driving up the price in a vicious cycle (for shorts). In just one hour, PIPPIN saw an additional $899,000 in short liquidations. Unlike tokens primarily manipulated in perpetual futures markets, PIPPIN’s manipulation appears to originate in the spot market and propagate through DEX activity into derivatives.

However, beneath the frenzy, warning signs lurk. From a technical analysis perspective, since early December, PIPPIN’s price has been making higher highs, but the Money Flow Index (MFI) has formed lower lows, indicating a persistent bearish divergence. This divergence often signals a potential large-scale correction. Although On-Balance Volume (OBV) continues to rise, reflecting buying pressure, the concentrated holdings of whales and the rapid price surge suggest that any trigger could lead to a “sell-the-rally” cascade.

Risk Warnings and Strategic Considerations: When Frenzy Meets Manipulation

For ordinary investors, PIPPIN’s current market situation is fraught with danger signals. First, the high concentration of supply is the biggest fundamental risk. When 80% of the tokens are held by a few, they can fully control market liquidity and influence price direction, making retail investors essentially gambling against “whales.” Second, although a short squeeze has occurred, negative funding rates and a high proportion of short positions reflect widespread bearish sentiment among professional traders, conflicting with the price rise and warranting caution.

From a trading perspective, given the huge rally, clear bearish divergence, and the risk of whales taking profits at any moment, chasing higher on PIPPIN now carries extremely high risk. For existing holders, considering partial profit-taking amid high volatility or locking in gains might be a more prudent strategy than holding for a deep correction. Crypto market history repeatedly shows that meme coins driven solely by capital and narratives, lacking solid fundamentals, tend to end with rapid reversion (downward correction).

What is PIPPIN? It is important to clarify that PIPPIN is a meme coin born on the Solana blockchain, combining narratives of “autonomous AI agents.” However, unlike projects with clear roadmaps and tokenomics, PIPPIN is more like a community-driven (or whale-driven) speculative asset. Its team is low-profile, development plans are vague, and its main use cases are currently limited to trading and speculation. Investors should be fully aware of its highly speculative nature and the risk of zeroing out before participating.

Common Market Manipulation Tactics in Meme Coins PIPPIN’s case is not isolated; it reveals some typical manipulation patterns in the meme coin space:

1. Centralized accumulation: Related wallets coordinate to collect large amounts of cheap tokens at lows.
2. Controlling liquidity: Providing large liquidity to influence DEX price discovery.
3. Creating narratives and hype: Amplifying social media buzz to attract FOMO (Fear of Missing Out).
4. Leveraging derivatives: Simultaneously pushing the spot price higher and inducing the market to build large reverse positions, setting the stage for a short squeeze. Recognizing these patterns can help investors stay calm amid future market frenzy.