Price takes a dive as developers move $16 million in tokens
The price of the frog-themed memecoin Pepe (PEPE) has dropped nearly 15% following concerns of a potential "rug pull" by its developers. These worries were sparked after $16 million worth of Pepe tokens were sent from the developers' multisig wallet to various crypto exchanges on Aug. 24.
Large transfers to exchanges and an unknown wallet raise eyebrows
The recent transfer included 16 trillion Pepe tokens, accounting for about 3.8% of the total supply. The tokens were sent to three exchanges - OKX, Binance, and Bybit - as well as an unverified wallet address. Specifically, $8.2 million worth of Pepe went to OKX, $6.5 million to Binance, and $434,000 to Bybit. An additional $400,000 was transferred to an unknown wallet.
Change in multisig wallet raises further skepticism
Following the transfer of funds, the developers made a noteworthy alteration to the team's multisig wallet. Previously, the wallet required five out of eight signatures to authorize transfers. However, it now only needs two out of eight signatures. Currently, the multisig wallet still holds $10 million worth of Pepe tokens.
Potential impact on Pepe's promising future
Pepe gained popularity among memecoin investors, who believed it had the potential to overtake the original memecoin, Dogecoin (DOGE), in the next bull run. However, the recent movement of funds out of the multisig wallet has raised doubts and may challenge this notion.
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