CATE Token Ownership Concentration Raises Red Flags
On-chain analytics firm BubbleMaps has been tracking the CATE memecoin and found an alarming concentration of ownership among a small group of wallets. According to their data, 25 wallets control nearly 20% of the total supply of CATE tokens. This concentration warning is aimed at the nearly 75,000 traders who have bought into the cat-themed token.
The data also shows that over 53,500 wallets are currently in profit, with two investors up by over $1 million and 48 others up by over $100,000. However, BubbleMaps questioned how long these investors will hold onto their gains, citing the risks associated with high concentration of ownership.
The CATE token markets itself as being linked to Kabosu, the Shiba Inu behind the Dogecoin meme. However, Atsuko Sato, Kabosu's owner, has disputed this claim, stating that she has not authorized any project to manage her intellectual property except for Own The Doge.
BubbleMaps' data highlights a familiar pattern among memecoins, where a small group of wallets control the majority of the supply. This was also seen in previous tokens such as CASHCAT and LAB, which both experienced significant price drops after their respective owners lost interest or had their gains unlocked.