Pepecoin (PEPE) has experienced a significant price crash of nearly 85% from its record high of $0.00000448 in May 2023. This drastic decline in value is accompanied by concerns over the project’s security breaches and the potential impact on investor sentiment.
Pepecoin has suffered two troubling security breaches in recent weeks, further exacerbating its downward momentum. The first incident occurred on August 24, when rogue founding team members transferred $16 million worth of PEPE tokens to exchanges, fueling fears of a “rug pull scam.” This development led to a 30% drop in the PEPE market.
The second security breach took place on September 9, with Pepecoin’s official X (Twitter) account confirming that an anonymous entity named “lordkeklol” had hacked their accredited Telegram channel. This breach of trust has contributed to a further 12% decrease in PEPE price, undermining investor confidence in the memecoin project.
The impact of these security breaches is evident in the data on Pepecoin’s supply distribution. Addresses holding between 100 million and 1 billion PEPE tokens, which account for approximately 96.5% of the circulating supply, have shown a significant decline in holdings since concerns about the “rug pull” scam emerged. This departure of whales from the project is likely to further erode buying sentiment in the PEPE market.
From a technical standpoint, PEPE appears to be in the breakdown stage of a descending triangle pattern, a bearish continuation pattern. This pattern typically resolves when the price breaks below its lower trendline and experiences a decline equivalent to the height between the triangle’s upper and lower trendlines. Consequently, there is a legitimate risk of PEPE price falling to $0.00000064 in September 2023, representing a 12% decrease from current levels.
The combination of Pepecoin’s significant price crash and the recent security breaches has created a challenging environment for investors. The exit of major stakeholders and the ongoing bearish momentum suggest that PEPE’s struggles may continue in the near future. This serves as a cautionary tale for the cryptocurrency community, highlighting the importance of robust security measures and transparent governance in maintaining investor confidence. As Pepecoin fights to rebuild trust and regain its footing, its ultimate fate remains uncertain.