Whale Wallet Watching: On the tracks of $PEPE

Step by Step Guide to Benefit From Smart Money Wallets

I’m sure many of you have been stunned by the recent hype surrounding PEPE and its rapid price increase. PEPE is the latest meme token to see massive price gains in a short period of time. The cryptocurrency has increased by over 200,000x in just a few weeks. If you had invested $100 on April 14, 2023, you could have sold your tokens for $20 million on Friday, May 5th.

Even though you most likely wouldn’t have sold at the ATH, you would have become a millionaire with your $100 investment.

If you feel like always missing out on such opportunities and only learn about new hype tokens when it’s already too late, you should read this article. I’ll introduce you to the powerful world of Whale Wallet Watching and show you what you can do, using PEPE as an example, to ensure that the next hype doesn’t pass you by.

Find smart whale wallets

1/ CoinGecko Top Gainers

In our quest to identify not just any wallet, but the right wallets that have made strategic investments in tokens yielding superior performance, we turn to CoinGecko. We begin by navigating to the ‘Top Gainers’ section, where we filter the results based on a specific time frame. I have chosen the top performers of the last 30 days from the top 300 tokens by market cap.

As I said in the introduction, we take PEPE as an example for this guide — which was actually the top performing coin of the last 30 days. From CoinGecko we get the token address, which we need in the next steps to further investigate the token and corresponding wallets.

2/ Dextools Chart

Next, we are interested in when the token’s price was low before it went up. For that, I do not rely on the often incomplete data from CoinGecko, but go to Dextools to get reliable data about on-chain trading.

In the case of PEPE, the lowest price was right when it began trading. Hence, our focus is on those wallets that were early adopters of PEPE, making their investments during its initial stages, prior to the onset of the hype. We are interested in PEPE purchases that were made on April 14 and 15.

With wallets that invested so early in a previously unknown and worthless token, we can either assume outrageous luck or that they knew more than the rest of us…

3/ Blockchain explorer

With the tokens of interest in mind, it’s time to dive into the world of blockchain transactions using a blockchain explorer. We start by heading to the appropriate explorer and entering the token address we’ve noted.

In the case of PEPE, which is on the Ethereum blockchain, we use etherscan.io and search for PEPE’s token address. Make sure that you are not looking at the contract but at the token overview. Select the tab “Transactions” (should be selected by default) and scroll to the bottom of the page until you see the link “Download: CSV Export”.

Click on it, choose a start and an end date (in our case April 14–15, 2023) and click Download. Open the CSV file and filter through large transactions and note the associated addresses. Avoid contract addresses like Uniswap’s!

4/ Find Whale Wallets of interest

Using this method, I was able to locate some very interesting Whale Wallets that made a fortune with PEPE. To further investigate the addresses found, I use zapper.xyz.

Whale 1: dimethyltryptamine.eth

A person with the address 0x4a2C786651229175407d3A2D405d1998bcf40614 exchanged 0.025 ETH for 2.13 trillion PEPE on April 14, 2023. The investment of about $50 was worth almost $10 million at the ATH on 05/05/2023.

Whale 2: 0xeb5bc1ec108ba15d19ce87f3e9c4fbff349d870e

A person with the address 0xeb5bc1ec108ba15d19ce87f3e9c4fbff349d870e exchanged 0.15 ETH for 853 billion PEPE on April 15, 2023. The investment of about $300 is still worth more than a million dollars. This person bought another 4.8 trillion PEPE in two more transactions on April 15.

Whale 3: 0x25cd302e37a69d70a6ef645daea5a7de38c66e2a

A person with the address 0x25cd302e37a69d70a6ef645daea5a7de38c66e2a exchanged 20,000 LIT for 3.41 trillion PEPE on April 15, 2023. This person bought another 1.5 trillion PEPE in two more transactions on the same day, April 15.

5/ Follow Whale Wallets

With a list of whale wallets that have all invested in a high-performing token, the question arises — what’s next? It’s important to remember that a single successful investment could be a stroke of luck. To differentiate the skilled investors from the fortunate ones, we further examine wallet transactions, across different blockchains. In addition to Zapper, tools like DeBank, Arkham, or Zerion help us do this. They allow tracking of wallet activity across all EVM-compatible chains. You should constantly monitor your list of smart wallets to discover promising new tokens as early as possible.

Our goal is to identify token purchases and sales, looking for patterns that might indicate a consistently profitable track record. If such a pattern emerges, it signifies that we’ve found a wallet that’s not just lucky, but strategically astute. This is a wallet worth keeping an eye on, as its future transactions could provide valuable insights for our own investment strategies.

Another valuable resource for those interested in the activity of ‘smart money’ within the blockchain sphere is the Twitter account LookOnChain. For instance, LookOnChain recently highlighted a trend where several whale investors in PEPE shifted their investments to another memecoin, LADYS.

While tracking smart money can be challenging in other investment arenas, the transparency of the crypto world, where all transactions are publicly recorded on the blockchain, makes this task considerably easier.

Conclusion

The world of cryptocurrency offers a vast landscape of opportunities, and the recent surge in PEPE’s value serves as a testament to this. However, navigating this landscape requires more than just luck; it demands a keen eye for detail, strategic foresight, and a willingness to delve into the intricacies of blockchain transactions. By following the steps I provided, you can uncover wallets that have demonstrated a knack for making profitable investments, such as those that capitalized on PEPE’s meteoric rise.

Remember, the key is not just to find wallets that have been successful once, but to identify those with a consistent track record of profitable investments. By keeping an eye on these wallets, you can gain valuable insights and potentially spot the next big opportunity before it becomes mainstream.

Indeed, the world of ‘whales’ in the crypto space is one of intrigue and admiration. Their tenacity and strategic maneuvers have been instrumental in shaping my own journey in crypto. These anonymous individuals have significantly enriched my understanding of cryptocurrency and DeFi. However, it’s crucial to remember that they, like us, are human and prone to errors. While it’s beneficial to observe and learn from the whales, blind imitation can lead to pitfalls. It’s essential to conduct your own research, form your own convictions, and make informed decisions that align with your investment goals and risk tolerance.

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None of the above is financial advice.