- Quick Descent: The memecoin Pepe sees a 15% price drop after a large token transfer sparks concerns.
- Wallet Woes: Developers transfer an alarming 4% of Pepe’s total supply to exchanges, raising “rug pull” suspicions.
From Meme to Concern
The frog-inspired memecoin, Pepe, has experienced a sharp 15% price decline, unsettling the crypto community. This decline correlates directly with the unexpected transfer of a substantial volume of Pepe tokens from the developers’ multisig wallet to various cryptocurrency exchanges.
1 hour ago, the Pepe multisig wallet, changed the amount of signatures required on their multisig from a 5/8 to 2/8. This comes after sending $15.7 million worth of $PEPE to exchanges.
A breakdown of what we know: pic.twitter.com/bxBxp6Nzqz
— ASXN (@asxn_r) August 24, 2023
Recent insights revealed that tokens worth $16 million were abruptly moved from the developer-controlled multisig wallet on August 24. The numbers are staggering: a total of 16 trillion Pepe tokens, which equates to around 3.8% of its entire supply, were divided and sent to three known exchanges and one unverified address. A breakdown of the transfers shows:
- $8.2 million to OKX
- $6.5 million to Binance
- $434,000 to Bybit
- An additional $400,000 to an unidentified wallet
Multisig Modifications and Market Reactions
The mysterious token transfers weren’t the sole reason for raised eyebrows. An analysis from Etherscan highlighted that post the huge token transfer, a modification was made to the Pepe team’s multisig wallet. Previously, it demanded five out of eight signatures for approval to facilitate transfers. Now, it requires just two. This dramatic reduction in required confirmations has fueled speculations and concerns among investors and market observers.
Further intensifying the atmosphere of suspicion is the fact that this was the inaugural instance of Pepe tokens being transferred from the project’s multisig wallet to exchanges. A tidal wave of reactions has swept over the crypto community. Many had previously pegged Pepe as the next big memecoin, even speculating that it could outperform the iconic memecoin, Dogecoin, in the forthcoming bull market. Given the latest developments, the community finds itself at crossroads, questioning the trajectory of this once-promising token.
Prominent crypto influencer @asxn_r highlighted the series of events on their Twitter feed, presenting a clear breakdown of the transfers and emphasizing the change in the multisig wallet’s approval mechanism. Such discussions in prominent crypto circles have played a pivotal role in shaping the community’s perceptions and reactions to these unexpected market maneuvers.
The unfolding of these events paints a picture of the volatility and unpredictability inherent in the crypto world, especially with newer tokens trying to establish trust in the market.