A surprising tendency in the DeFi market is the increase in duplicate tokens. Tokens labelled as “sequels,” such PEPE2, SQUID2, and SHIB2, have proliferated, luring investors with the promise of potentially enormous gains. The sad truth is that these coins frequently result in catastrophic financial losses for people seeking the mythical 100x return.
Consider SQUID2, a token that gained popularity almost immediately. SQUID, its predecessor, is still notorious for having the biggest “rug pull” in 2021. Many are rightfully asking whether history will repeat itself in light of SQUID2 following in these questionable footsteps.
Examining the token distribution among holders emphasises these worries even further. An worrying 70% of the total supply of SQUID2 is held by the top holders, who are all connected through Ethereum transactions. An indication of possible market manipulation is a large concentration of tokens in a small number of wallets.
Similar events occur with SHIB2. It has been noticed that a particularly big group of connected wallets has caused some concern. A single person sent 0.1 ETH to each of three distinct wallets, purportedly to pay for petrol costs. The fact that these wallets collectively own approximately 10% of the SHIB2 token’s circulating supply raises the possibility that one person or organisation might control the token market.
The narrative for PEPE2 is the same. Many investors have rushed to PEPE2 as a result of the success of its predecessor, PEPE. The dangers associated with these “sequel” coins should not be understated, despite the fact that some of the large holdings have ties to well-known exchanges like KuCoin and MEXC.
Most of the time, investing in these tokens is a risky endeavour. The risk of utter loss frequently outweighs the possibility for spectacular gains. Developers or insiders typically come out on top in these situations, while regular investors suffer the most negative effects.
