PEPE Coin Sees 20% Drop: Unusual Token Transfers Raise ‘Rug Pull’ Concerns

The post PEPE Coin Sees 20% Drop: Unusual Token Transfers Raise ‘Rug Pull’ Concerns appeared first on Coinpedia Fintech News

The world of cryptocurrencies is witnessing a surprising twist as the meme-coin Pepe (PEPE) experiences a sudden 20% drop in its value, following a series of significant occurrences that have left the cryptocurrency community shaken. The situation has raised concerns about the security of a multisig wallet, unusual token transfers, and the potential for a “rug pull” orchestrated by the coin’s developers.

Pepe Coin is in Big Trouble

Pepe (PEPE), known for its frog-themed meme, has seen its price plummet by 20%, creating a wave of uncertainty in the crypto space. The situation began when an astonishing $16 million worth of Pepe tokens was moved from the developers’ multisig wallet to various cryptocurrency exchanges. 

This eyebrow-raising maneuver ignited suspicions that the developers might be considering offloading their holdings, potentially destabilizing the coin’s value and affecting investors.

Unconventional Shifting of Security Protocols

Adding to the concern, modifications were made to the security protocols of the multisig wallet. Formerly requiring five out of eight signatures for transaction approvals, the wallet now only demands two out of eight signatures. 

This alteration has given rise to speculations that the developers could be planning an exit strategy, facilitating rapid transfers without needing broad consensus

Fear of Rug Pull Rises as Unconventional 16 Trillion Pepe Token Transfer Occurs

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. 

Another $400,000 made its way to an undisclosed exchange or wallet, creating additional layers of intrigue. Notably, approximately $10.42 million worth of Pepe tokens is still held 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.