The meme coin Pepe (PEPE), which has experienced a dramatic 20% decline in value as a result of a number of fantastic events that have left the cryptocurrency community alarmed, has taken a stunning turn in the cryptocurrency world. The situation has prompted questions about the security of multisig wallets, unusual token transfers, and the possibility of a “rug pull” planned by the coin’s developers.
Pepe Coin is in Serious Trouble
Pepe (PEPE), known for its frog-themed meme, has witnessed a 20% decline in value, creating a wave of concern in the cryptocurrency space. The incident began when Pepe tokens worth an astounding $16 million were transferred from the developers’ multisig pockets to other cryptocurrency exchanges.
This puzzling action raised concerns that the coin’s creators may be considering selling their holdings, which would certainly destabilize the coin’s value and damage investors.
Unusual Modification of Safety Protocols
Modifications have been made to the multisig pockets’ safety protocols, which also affect the priority. Previously calling for 5 out of 8 signatures to approve a transaction, the pockets now just require 2 out of 8 signatures.
This change has led to rumors that the builders may very well be considering an exit strategy, allowing for quick transfers despite lacking widespread agreement.
Concern Over Rug Pull Grows as Unusual 16 Billion The Pepe Token Switch occurs
A closer look at the fine print reveals that significant amounts of Pepe tokens have been sent to a variety of exchanges, including $8.36 million to OKX, $6.6 million to Binance, and $438,000 to Bybit.
An additional $400,000 found its way into a secret change or pocket, adding more layers of intrigue. Notably, the multisig pockets still contain around $10.42 million worth of Pepe tokens.
Concerns among the community have grown as a result of the astonishing movement of 16 trillion Pepe tokens, or nearly 4% of the total supply, to exchanges and an unidentified pockets address.
Since this is the first time Pepe tokens have been moved from the project’s multisig pockets to a cryptocurrency exchange, there are concerns that a “rug pull,” where developers withdraw their holdings after selling the project, caused the coin’s value to fall and investors to suffer losses.