PEPE Token Tumbles 20% Amid Suspicious Activity – Details

Christian Encila

Last Updated: August 25, 2023 3:00 pm

3 mins read

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PEPE, the once-promising meme coin that garnered attention in the past quarter, suffered an unforeseen blow on Thursday as it succumbed to the grip of FUD (fear, uncertainty, and doubt). Despite making waves in recent months, PEPE’s momentum fizzled out by August, exacerbated by a wave of negative sentiment that battered the altcoin.

The current price of PEPE stands at a mere $0.000000870194 according to CoinGecko, sustaining a 21% slump in the last 24 hours alone. Over the span of seven days, the meme coin incurred losses of 15.3%, signaling a distressing trend for its holders.

PEPE price action today. Source: Coingecko

Multisig Wallet Changes Fuel PEPE Rug Pull Allegations

The root of this downturn traces back to recent alterations in PEPE’s multisig wallet, coupled with newfound token transfers that ignited a prevailing fear of a potential “rug pull” orchestrated by the project’s developers.

On August 24, nearly $16 million worth of Pepe tokens were transferred from the developers’ multisig wallet to various crypto exchanges, sending shockwaves throughout the community.

1/4

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

The tokens flowed out of the PEPE multisig wallet, directed towards addresses affiliated with notable platforms such as Binance, OXK, and Bybit.

What further exacerbated concerns was the transformation in the transaction approval process within the vault-like wallet. Previously requiring consensus from five out of eight wallets, it had inexplicably shifted to a meager two out of eight.

Any reason why the PEPE multisig wallet changed the threshold to just 2/8 signatures? Seems weird, this isn’t standard right?

Also, seems that some has been sent to exchanges pic.twitter.com/1DVZIOvef8

— CryptoNoddy (@Crypto_Noddy) August 24, 2023

This unprecedented maneuver marked the first instance in which the project’s crucial multisig, responsible for safeguarding a significant portion of the token’s supply, executed such an outward transfer.

Investor Reactions And Realized Losses

While the authenticity of the allegations remains unverified, investors swiftly leaped to conclusions, suspecting the development team of orchestrating a scam for personal gain. Contrary to this sentiment, closer analysis suggests that had foul play been intended, the transfer’s magnitude would have been substantially larger.

PEPEUSD trading at $0.000001 on the daily chart: Gemini/TradingView.com

Nevertheless, the panic-induced sell-off rapidly gained traction, precipitating an abrupt nosedive in PEPE’s price and fostering an environment dominated by fear.

On a broader scale, the network experienced a surge in Realized Losses, reaching a three-month peak and registering the third-highest single-day losses since the token’s inception. Ultimately, investor losses tallied a staggering $14 million.

The rollercoaster journey of the PEPE meme coin, from soaring highs to a precipitous fall, underscores the impact of FUD within the volatile cryptocurrency landscape.

While the true intentions behind the wallet changes and token transfers remain shrouded in uncertainty, the incident serves as a stark reminder of the fragility inherent in meme-based tokens.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Blockcast

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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