The downfall of PEPE: Multisig Wallet Changes Fuel Rug Pull Allegations
PEPE, the once-promising meme coin, has suffered a significant blow as it fell victim to fear, uncertainty, and doubt (FUD). Here are the key points:
1. Alterations in the multisig wallet: Recent changes in PEPE’s multisig wallet, coupled with token transfers, sparked concerns of a potential rug pull orchestrated by the developers. On August 24, $16 million worth of PEPE tokens were transferred from the developers’ wallet to various crypto exchanges.
2. Transformation in transaction approval process: The wallet’s transaction approval process shifted from requiring consensus from five out of eight wallets to just two out of eight. This raised eyebrows and added to the growing skepticism.
3. Investor reactions and realized losses: Despite the allegations being unverified, investors quickly jumped to conclusions, suspecting a scam. This led to a panic-induced sell-off, causing PEPE’s price to plummet and resulting in a three-month peak of realized losses, totaling $14 million.
4. Fragility of meme-based tokens: The rollercoaster journey of PEPE highlights the impact of FUD in the volatile cryptocurrency market. While the true intentions behind the wallet changes and token transfers remain uncertain, this incident serves as a reminder of the inherent fragility of meme-based tokens.
In conclusion, PEPE’s downfall demonstrates the detrimental effects of FUD and emphasizes the risks associated with meme-based cryptocurrencies.
Hot Take: The recent events surrounding PEPE highlight the importance of transparency and trust in the crypto space. Investors must remain vigilant and conduct thorough research before investing in any project to avoid falling victim to FUD and potential rug pulls.
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