Siddhartha D.
7:44 29th Aug, 2023

Pepe Coin Rug-Pull: The Full Story Revealed!

The recent events in PEPE coin have sent shockwaves through the community, raising concerns of a potential PEPE Coin rug-pull.

In the underrated yet unpredictable world of meme coins, only a few have captured the collective imagination quite like PEPE Coin.

However, recent events have sent shockwaves through the community, raising concerns of a potential PEPE Coin rug-pull and leaving investors in a state of uncertainty.

Let’s dive deeper into the issue and uncover the full story.

pepe coin zelta

PEPE Coin's Rise and Fall

PEPE Coin, once hailed as a deflationary meme coin sensation, enjoyed the glory of soaring prices during the meme coin frenzy of May. Yet, as the frenzy faded away, the PEPE token faced a steep decline.

Now the latest twist centres around the alleged actions of its own founders and  developer team, which have raised eyebrows of the whole community and have triggered an intense bout of speculation within the cryptocurrency world.

What happened to PEPE coin?

Being the reputed meme token which PEPE is, a good cumulative trading volume would not be alarming however when one single transfer amounts to $16 Million, things can take a rough turn and shake confidence. The same happened here with PEPE.

The drama unfolded when the PEPE team transferred a staggering quantity of 16 trillion PEPE tokens, equivalent to almost $16 million, from their multisig wallet to an externally-owned wallet address.

From there, significant amounts were funnelled to major exchanges, including:
$6.5M of PEPE to Binance
$8.2M of PEPE to OKX
$434k of PEPE to Bybit
$389K of PEPE to another address

This transfer of funds, amounting to more than half of the vested tokens earmarked for maintaining liquidity, raised immediate red flags. The absence of prior communication regarding this move only deepened concerns within the community.

Multisig Wallet Dilemma: A Breach of Trust?

The alteration of the multisig wallet's approval threshold added another layer of complexity to the unfolding saga.

Previously requiring five signatures out of eight for validation, the threshold was changed to just two signatures, leaving the community perplexed. As per members this shift is a potential hint at the internal turmoil or even malicious intent among the team members.

The use of a multisig wallet, which typically adds an extra layer of security through multiple approvals, was supposed to prevent such unilateral actions.

The "Ex-Team Members" Revelation

To top it all off, in a startling revelation, the official PEPE account disclosed that "3 ex-team members" were responsible for the bulk transfers.

These former insiders allegedly accessed the multisig account, moved the 16 trillion PEPE tokens, and proceeded to liquidate them on centralised exchanges.

Additionally, the subsequent move of the remaining tokens to a different wallet further stoked fears.

pepe coin twitter

Presently, the PEPE team while apologising for the inconvenience and losses caused by the “bad actors,” has assured the community that the remaining 10 trillion PEPE tokens in the multi-sig are “safe” and out of the reach of “nefarious” ex-team members.

Community Reaction and Price Volatility

The recent developments were not acknowledged well by the community and as expected the PEPE token took a 20% fall in a week. The sudden surge in trading volume and panic-induced selling demonstrated the fragility of investor sentiment.
However, in spite of the turmoil, the PEPE token at the time of writing has managed to rebound by 3.22% which might be due to the recent assurance of the remaining tokens being safe.

Is PEPE safe?

Considering recent events it is natural to doubt if PEPE is safe or not?

The events surrounding PEPE Coin's recent rollercoaster ride have shown how unpredictable the meme coin can be.

The rug-pull allegations have sent shockwaves through the community, forcing investors to question the legitimacy of investing in such volatile assets. While PEPE token's fundamentals remain resilient, the shadow of doubt still prevails.

In conclusion, the entire episode of PEPE Coin serves as a reminder of the importance of due diligence, vigilance, and thoughtful decision-making in the cryptocurrency world, where fortunes can be made or lost in the blink of an eye.

Also read: The Downfall Of FTX

Image Credits: AnalyticsInsight; Pepe Twitter.


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