The Problem with Pepe (PEPE) and its Multisig Wallet
The value of the memecoin Pepe (PEPE) dropped by 13% after the crypto community noticed suspicious changes to the token’s multisignature (multisig) wallet. The wallet’s threshold for token transfers was reduced from 5 of 8 to just 2 of 8 wallet signatures, which is significantly lower than what is expected for popular coins. This change raised concerns among crypto enthusiasts.
- The multisig wallet is meant to reserve a portion of Pepe’s supply for future exchange listings, liquidity pools, and bridges.
- The wallet has sent $15.6 million worth of PEPE tokens to various exchanges, including Binance, OKX, and Bybit.
- The remaining amount in the multisig wallet is 3.8% of the token’s supply, equivalent to $10.4 million.
- There is uncertainty about the identity of the wallet signers, as it is possible that they may have always belonged to the same two people.
- The compromised keys in a multisig wallet can lead to security breaches, as demonstrated by the $600 million Ronin Bridge hack.
Currently, PEPE is trading at $0.0000009472, experiencing a 13.74% drop in value in a single day and a 29.61% drop compared to the previous month.
Hot Take
The sudden changes to Pepe’s multisig wallet and the transfer of a significant amount of tokens to exchanges have raised concerns about the security and intention of the project. The lack of transparency regarding the wallet signers further adds to the uncertainty. Crypto investors should be cautious when dealing with tokens that display such suspicious behavior.
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