PepeCoin Price Crashes 20% After $16 Million Transfer: Was This a ‘Rug Pull’?
The world of cryptocurrencies has been taken by surprise as Pepe (PEPE), the meme-coin featuring the iconic frog-themed meme, undergoes an unexpected 20% drop in its value. A sequence of significant incidents has left the cryptocurrency community unsettled, raising questions about the security of a multisig wallet, unusual token transfers, and the potential for a developer-driven “rug pull.”
Pepe Coin is in Big Trouble
The meme-inspired cryptocurrency, Pepe (PEPE), which has captured attention with its frog-themed concept, has encountered a sharp decline of 20% in its price. This sudden drop has cast a cloud of uncertainty over the realm of crypto. The chain of events that sparked this upheaval began with a remarkable transfer of Pepe tokens worth $16 million from the developers’ multisig wallet to various cryptocurrency exchanges.
Developers’ Moves Trigger Suspicion
This eyebrow-raising maneuver has ignited a wave of suspicion regarding the intentions of the developers. The massive movement of $16 million worth of Pepe tokens from the developers’ wallet to exchanges has raised concerns that the developers might be contemplating the sale of their holdings. Such a move could potentially unsettle the value of the coin, sending ripples through the investor community.
Read More: PEPE Price Analysis: With PEPE Coin Price Crashing This Week, Is A Reversal On The Charts?
Why Were the Security Protocols Changed?
Adding to the unease is the alteration made to the security protocols of the multisig wallet. Formerly requiring the consensus of five out of eight signatures for transaction approvals, the wallet now only demands two out of eight signatures.
This change in protocol has led to speculations that the developers might be orchestrating an exit strategy, enabling swift transfers without necessitating widespread consensus.
Token Transfers Raise Intrigue
Delving further into the details, sizable amounts of Pepe tokens were transferred to multiple exchanges including $8.36 million to OKX, $6.6 million to Binance, and $438,000 to Bybit.
An additional $400,000 found its way to an undisclosed exchange or wallet, adding layers to the puzzle. It’s important to note that approximately $10.42 million worth of Pepe tokens are still retained within the multisig wallet.
The movement of a staggering 16 trillion Pepe tokens, equivalent to approximately 4% of the total supply, to exchanges and an undisclosed wallet address has heightened concerns within the community.
Since it is the first time Pepe tokens have been transferred from the project’s multisig wallet to a cryptocurrency exchange, raising suspicions of a “rug pull,” a process where developers withdraw their holdings after selling the project, causing the coin’s value to plummet and investors to suffer losses.
