PIPPINUSDT is considered a very high-risk investment, primarily due to high token concentration among a small number of holders and a significant risk of market manipulation. On-chain data and market analysis reports indicate that insider wallets control over 70% (up to 80% by some reports) of the total supply.
Key Risk Factors
Market Manipulation: Concentrated ownership allows a few large holders to artificially influence the supply, demand, and price of PIPPIN. This creates a high risk of "pump and dump" schemes, where the price is inflated to attract unsuspecting investors, followed by a rapid sell-off that leaves others with significant losses.
Centralization and Control: With such a large portion of the supply held by a small group, the market is not decentralized. Decisions made by these few holders, such as large sell orders, can cause sudden and unpredictable price crashes.
Exchange Delistings: Due to concerns over market manipulation and high centralization, the PIPPIN/USDT trading pair has already been delisted from the spot markets of several exchanges, including Bitget, and the perpetual futures contract was delisted from OKX. This reduces liquidity and investor confidence.
High Volatility: The token is characterized by extreme price volatility, and its value can rise or fall suddenly and unpredictably.
Regulatory Scrutiny: Irregular fee structures and potential market abuse raise red flags that could lead to investigations by regulators and exchanges, further impacting the token's availability and price.
