Pepe Token's Price Drops 15% Amid Concerns of Dev Team's Actions

Pepe Token's Price Drops 15% Amid Concerns of Dev Team's Actions

The value of PEPE cryptocurrency has seen a significant decline of 15% following unusual token movements that have raised suspicions of a potential rug pull. The decline was triggered by developers transferring nearly 4% of the total supply of Pepe tokens to various exchanges without prior notice.

The frog-themed memecoin, Pepe, experienced a sharp decrease in its price after recent modifications to a multisig wallet and the initiation of new token transfers led to fears of a possible "rug pull" orchestrated by the development team.

These concerns were exacerbated by the movement of $16 million worth of Pepe tokens from the developers' multisig wallet to multiple cryptocurrency exchanges on August 24. 

As per data from the Safe Global blockchain custody app, approximately 16 trillion Pepe tokens, which constitutes around 3.8% of the total supply, were transferred to three exchanges and an unverified wallet address.

Of the transferred funds, $8.2 million worth of Pepe tokens were sent to OKX, $6.5 million to Binance, $434,000 to Bybit, and an additional $400,000 to an undisclosed wallet address.

Subsequent to the transfer of the 16 trillion Pepe tokens to exchanges, the developers made an unusual alteration to the team's multisig wallet. Presently, the wallet, which still contains $10 million worth of Pepe, necessitates only two out of eight signatures for authorizing transfers, a reduction from the previous requirement of five out of eight signatures.

Notably, this occurrence marked the first instance of Pepe tokens being moved from the project's multisig wallet to cryptocurrency exchanges. Pepe had gained traction among memecoin investors, with some anticipating it to become a significant player in the space, potentially even surpassing the original memecoin, Dogecoin, during the next bullish market phase. However, the recent movement of funds from the multisig wallet has led to doubts for some regarding the realization of this optimistic scenario.

 

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