Fears of a rug pull cause a 15 percent drop in PEPE as unusual token movements raise alarm
August 25, 2023 6:47 AM
After developers abruptly distributed over 4% of the total supply of Pepe to exchanges, the memecoin's value plunged by 15%.
Fears of a "rug pull" by the developers caused the price of the frog-themed memecoin Pepe to drop by roughly 15% after recent upgrades to a multisig wallet and new token transfers.
On August 24, around $16 million worth of Pepe tokens were transferred from the developers' multi-sig wallet to multiple crypto exchanges, prompting the allegations→ and the subsequent negative price action.
The wallet address sent 16 trillion Pepe tokens, or about 3.8% of the entire supply, to three exchanges and an unverified wallet address, as seen by data from the blockchain custody software Safe Global.
According to the available data→, Pepe valued at $8.2 million was delivered to OKX, $6.5 million to Binance, $434,000 to Bybit, and another $400,000 to an unidentified wallet.
The Pepe multisig wallet's owners sent and received 16 trillion PEPE.
The source: Safe Global
After sending 16 trillion Pepe tokens to exchanges, the developers did something unusual with the multisig wallet that, as of this writing, still holds $10 million worth of Pepe.
According to information→ gathered by Etherscan, the wallet now only needs two out of eight signatures to approve whether or not it should make transactions. Previously, this number was five out of eight.
Tokens for the Pepe project were delivered to exchanges for the first time during this transaction.
Many memecoin backers considered Pepe to be the next big thing, with some even speculating that the frog-themed meme token could "flip" the original memecoin, Dogecoin DOGE, in the next bull run.
For others, this theory may be called into doubt by withdrawals of funds from the multisig.