The once-promising frog-themed memecoin Pepe (PEPE) has taken a significant hit as its price plunged nearly 15%. Recent changes to a multisig wallet and the transfer of new tokens have sparked fears of a potential “rug pull” by its developers. The negative price action is deeply connected to the allegations surrounding Pepe. On August 24th, a staggering $16 million worth of Pepe tokens were transferred from the developers’ multisig wallet to several cryptocurrency exchanges. This move has raised many eyebrows and caused panic within the community.
Analyzing the data from blockchain custody app Safe Global, it was revealed that the wallet address in question sent a total of 16 trillion Pepe tokens, accounting for approximately 3.8% of the total supply. The tokens were distributed to three exchanges: OKX received $8.2 million worth of Pepe, Binance obtained $6.5 million, and Bybit received $434,000. Additionally, a sum of $400,000 found its way to an unidentified wallet. This transfer marks the first time that Pepe tokens have ever been sent from the project’s multisig wallet to exchanges, adding further concern to the already shaky situation.
Adding fuel to the fire, the developers made a questionable adjustment to the team’s multisig wallet after the funds were transferred. As of the time of publication, the wallet still holds $10 million worth of Pepe tokens. Previously, the wallet required five out of eight signatures to authorize transfers. However, it now only needs two out of eight, raising doubts surrounding the team’s intentions and potentially compromising the security of investors’ holdings. These alterations amplify the existing concerns and cast shadows of doubt on the future prospects of Pepe.
The potential of Pepe as a game-changing meme token was once greatly anticipated by memecoin enthusiasts. A significant number of investors held high hopes that, during the next bull run, Pepe could surpass the original memecoin king, Dogecoin (DOGE). However, the recent movements of funds from the multisig wallet have shaken this belief for many. The sudden transfer of a substantial amount of tokens has raised doubts about the project’s long-term viability and the integrity of its developers.
The allegations of a potential “rug pull” and the subsequent negative price action have cast a dark cloud over the previously optimistic Pepe community. Investors, once eager to embrace Pepe as the next big thing in the memecoin world, now find themselves questioning the legitimacy of the project. The fate of Pepe hangs precariously in the balance, with its future uncertain and its reputation tarnished. Only time will tell whether this once-hopeful frog-themed memecoin can regain its ribbit and leap back into the limelight.