PEPE, the once promising meme coin that attracted attention last quarter, suffered an unexpected blow on Thursday as it came under the grip of FUD (Fear, Uncertainty and Doubt). Despite making waves in recent months, PEPE’s momentum faded by August, which was further exacerbated by the wave of negative sentiment that hit the altcoin.
According to CoinGecko, the current price of PEPE is just $0.000000870194, with a 21% drop in the last 24 hours. In a span of seven days, Mem coin suffered a loss of 15.3%, indicating a distressing trend for its holders.
PEPE Price Action Today. Source: coingeco
Multisig wallet changes fuel PEPE rig pull charges
The root of this bearishness is linked to recent changes to PEPE’s multisig wallet, which combined with the newly detected token transfers have ignited the prevailing fear of a possible “rag pull” held by the project’s developers.
On 24 August, Approximately $16 million worth of Pepe tokens was transferred from the developers’ Multisig wallet to various crypto exchanges, sending shockwaves throughout the community.
1 hour ago, Pepe Multisig Wallet changed the amount of signatures required on its Multisig from 5/8 to 2/8. This comes after remittances worth $15.7 million $PEPE for exchange.
Details of what we know: pic.twitter.com/bxBxp6Nzqz
— ASXN (@asxn_r) 24 August 2023
Tokens flowed from the PEPE multisig wallet, directed to addresses affiliated with notable platforms such as Binance, OXK, and ByBit.
Changes to the transaction approval process within wallets such as Vault have further raised concerns. Consensus was required from five of the first eight wallets, but this was inexplicably transferred to Alp. two out of eight,
Is there a reason why the PEPE multisig wallet changed the limit to only 2/8 signatures? Seems weird, it’s not standard is it?
Also, it appears some have been ported to exchanges. pic.twitter.com/1DVZIOvef8
— Cryptonody (@Crypto_Noddy) 24 August 2023
This unprecedented maneuver marked the first instance in which the project’s key multisig, responsible for securing a significant portion of the token supply, carried out such an external transfer.
Investor reactions and actual losses
Although the authenticity of the allegations is unverified, investors quickly jumped to conclusions, suspecting the development team of running a scam for personal gain. Contrary to this sentiment, closer analysis shows that if dishonesty had been intended, the magnitude of the transfer would have been much larger.
PEPEUSD is trading at $0.000001 on the daily chart: Gemini/TradingView.com
Nevertheless, panic-induced selling quickly picked up pace, causing a sudden drop in PEPE price and fueling an environment dominated by fear.
On a broader scale, the network experienced an increase in real losses, reaching a three-month peak and registering the third largest single-day loss since the coin’s launch. Ultimately, investor losses reached an astonishing $14 million.
The PEPE meme coin’s tumultuous journey, from lofty highs to steep declines, underscores the impact of FUD in a volatile cryptocurrency landscape.
While the true intentions behind the wallet change and token transfer are shrouded in uncertainty, the incident serves as a stark reminder of the fragility inherent in meme-based tokens.
(The contents of this site should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
featured image from blockcast