The PEPE token registered a sharp decline in price after millions worth of the meme token flooded prominent crypto exchanges such as Binance, Bybit, and OKX.
The PEPE token is the third largest meme coin by market capitalization and has been the best-performing crypto asset of the ongoing year.
Troubling Multisig Changes And FUD
According to the information available, around 16 trillion PEPE tokens flowed out of the PEPE multisig wallet on Thursday. The tokens were transferred to several addresses associated with OKX, Bybit, and Binance. The transfer came shortly after a user flagged troubling changes to the Pepe multisig wallet. The user pointed out that Pepe’s multisig wallet had changed its threshold to 2/8 signatures. The initial requirement for the multisig wallet was ⅝ signatures.
“Any reason why the PEPE multisig wallet changed the threshold to just 2/8 signatures? Seems weird. This isn’t standard, right? Also, seems that some has been sent to exchanges.”
The massive flow of PEPE tokens saw a wave of Fear, Uncertainty, and Doubt (FUD), leading to the value of the token drop by nearly 15% in minutes. This has been the first time the wallet, which holds a majority of the token supply, has sent out such a large quantity of the meme coin to exchanges. Users are also worried about the fact that the last tweet from the PEPE X account was over two weeks ago, leaving users worried if they should be worried about a rug pull.
However, other users pushed back against the fear-mongering, stating that there was a minimal chance of a rug pull in the case of PEPE.
“Quick reminder to everyone – The only holders of more than 2.5% of PEPE are OKX and Binance, and of the top six holders, five are exchanges. Also, circulating supply = maximum supply. So there’s a minimal risk for traditional “rug” here. The token belongs to the community.”
What Next For PEPE?
The PEPE token’s price has dropped over the past 24 hours. The token was already in a bearish trend but has now dropped from $0.0000012 to around $0.0000008. Assuming the latest warnings about changes to Pepe’s multisig wallet are all FUD, the token’s underlying fundamentals look strong. According to data from Etherscan, the token is closing in on 140,000 token holders. This figure has seen a considerable increase over the past few months despite there being no major price pump.
This continued growth suggests that PEPE’s adoption as a crypto asset continues to grow, which bodes well for the future.
New PEPE Memecoin On BNB Chain
In June, the Pepe team had announced the launch of a new PEPE memecoin. The announcement came shortly after the launch of a similar token on Ethereum. The new token was issued as a BEP20 token on the BNB chain and has several unique mechanisms programmed into its tokenomics. The market capitalization for the PEPE token that debuted on Ethereum exceeded $1 billion by the 5th of May. The team behind the PEPE BNB token plans to launch multiple projects, with 13 launches scheduled for 2023.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
