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Suspicious Movements and Allegations Lead to a Fall in Pepe Coin Price

3 mins
Translated Harsh Notariya
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In Brief

  • Pepe, a popular meme coin, is under scrutiny due to suspicious contract address movements, raising rug pull allegations.
  • Pepe's multisignature wallet threshold change and transfer of nearly $15 million worth of tokens to an externally owned account has alarmed investors.
  • Amid these allegations, PEPE's price has dropped by over 20% in 24 hours, causing panic selling and increasing concerns about a potential rug pull.
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Pepe (PEPE), one of the most popular meme coins of the last period, was shaken by suspicious movements in contract addresses. These movements, which were detected by the community, raised various allegations and some suspect a rug pull.

Pepe has been one of the most hyped meme coins lately. Some early traders made over 1,000x gains trading the meme coins. However, now, there has been panic amongst the community members.

Community Grows Suspicious as Pepe Makes a Bad Security Choice

Community members have recently alleged that PEPE has changed the threshold of the multisignature wallet to two signatures from five. The threshold is the minimum signatures required to authorize a transaction in the wallet.

Community suspects change in multi-sig threshold on Pepe memecoin wallet. Source: X (Twitter)
Community suspects change in multisig threshold on Pepe meme coin wallet. Source: X (Twitter)

Moreover, according to the on-chain sleuth ZachXBT, the meme coin developers have sent nearly $15 million worth of tokens to an externally owned account (EOA). The EOA then sent the funds to exchanges as follows:

  • $6.5M of PEPE to Binance
  • $8.2M of PEPE to OKX
  • $434k of PEPE to Bybit
  • $389K of PEPE to another address

This was described as dangerous, and warnings were issued for the popular meme coin. For now, there is no official statement from the Pepe team.

The PEPE price, on the other hand, has declined by more than 20% in the past 24 hours. The increasing trading volume drives the speculation that investors are panic selling due to the multisig threshold fiasco. However, there is no concrete sharing or explanation at this stage.

Pepe price. Source: BeInCrypto

Fears of Rug Pull

Meme coins have a reputation of conducting rug pulls after driving up hype. Also in Pepe’s case, the community is making allegations of a rug pull after monitoring recent transactions.

Click here to learn more about rug pulls.

Lately there have been frequent incidents of rug pulls. Especially on the new Layer 2 project, Coinbase Base. On Friday, Magnate Finance, a decentralized finance (DeFi) protocol on Base conducted a $6.5 million rug pull. Previously on Aug. 16, SwirlLend’s Total Value Locked (TV) dropped to almost zero after the team scammed users.

And the $23 million BALD meme coin rug pull happened on the Base network.

As the community and on-chain analyst goes suspicious about Pepe meme coin, the investors should be cautious about their investment decisions. Pepe meme coin may invite greater volatility due to the allegations.

Got something to say about the Pepe rug pull allegations or anything else? Write to us or join the discussion on our Telegram channel. You can also catch us on TikTok, Facebook, or X (Twitter).

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In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.

Harsh Notariya
Harsh started investing in crypto during the 2021 bull market. He took the opportunity of the market crash in May to learn more about Bitcoin and blockchain technology. Since...