PEPE Dives 18% As Weird Token Transfers By Developers Spark Rug Pull Suspicions

PEPE Whale Takes $540,000 Paper Loss in Two Days as Token Plunges Over 30%

The price of Pepe (PEPE) tumbled over 18% Friday after the meme coin’s team transferred almost 4% of its total supply to exchanges without warning, igniting fears of a potential rug pull.

PEPE’s all-important multi-sig wallet sent around $16M worth of PEPE tokens to three centralized cryptocurrency exchanges and one unverified wallet. Data indicates that $8.2 million in Pepe was sent to OKX, $6.5 million to Binance, and $434,000 to Bybit, while an additional $400,000 was transferred to an unknown address.

Moreover, there was a significant change in the multi-sig wallet’s security parameters. PEPE developers have reduced the number of signatures required to sign off on whether or not the wallet should make transfers. Initially, the requirement was 5 out of 8 signatures (5/8). However, the wallet now only requires two out of eight signatures as of August 24.

The multisig first received funds from Binance 3 hours ago & proceeded to send Pepe to the following places:

– $8.36 million to OKX
– $6.6 million to Binance
– $438,000 to Bybit
– $400,000 to an unknown exchange/wallet.

$10.42 million worth of $PEPE remains in the multisig.

— ASXN (@asxn_r) August 24, 2023

It’s worth noting that this movement of assets marked the first time that Pepe tokens had ever been sent from the project’s multi-sig wallet to centralized exchanges. The reasons for the transfers and the alteration of signature requirements nonetheless remain unknown as the PEPE team has not made any announcements. 

The multi-sig wallet still holds approximately 10.697 trillion PEPE tokens worth $9.61 million.

PEPE, the token that sprouted out of the “pepe the frog” meme, rocketed to a market cap of over $502 million after an impressive 2,000% climb since its launch in late April. As the hype around PEPE continued to build, some observers even suggested the frog-based meme coin had the potential to unseat the OG memecoin, Dogecoin (DOGE). However, the multi-million-dollar token transfers now make the project questionable.

PEPE tanked after the news emerged on social media, down 18.0% as of publication time. The token’s market capitalization lost $100 million from $444.4 million to as low as $343 million as the massive transfers with no official communication from the team triggered panic selling.

“Although profit taking in crypto is normal from a team’s perspective, the suddenness [and] obscurity of the transactions, coupled with the lack of communication raises some red flags,” crypto strategist Miles Deutscher posited.

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