- The Pepe (PEPE) token developers sent nearly $18 million worth of the meme coins to different exchanges raising selling or rug pull pressure.
- Despite the notable drop, some crypto analysts argue it could be a good buy for Pepe as the price is currently sitting on a strong support level.
The third largest meme coin, Pepe (PEPE), experienced a technical anomaly that had most holders worried about a potential rug pull on Friday. Without any official communication from the Pepe coin core developers, the holders kept wondering why the team changed the multi-sig settings from 5 signatures to 2.
Additionally, the Pepe coin developers sent a huge portion of tokens in centralized and decentralized exchanges including Binance and Uniswap. As a result, the Pepe community speculated on possible whale sell pressure.
However, the most disturbing thought was of a possible rug pull from the core developers. According to market aggregate data provided by dexscreener, Pepe had a total liquidity of about $10.3 million on Uniswap V3. Thus highlighting that the developers have the power to wipe out the entire liquidity for the frog-themed meme coin.
Moreover, the Pepe coin developers deposited about 17.3 trillion PEPE worth about $18 million. Consequently, Pepe coin’s early investors dumped about 1.88 trillion coins worth approximately $1.68 million on decentralized exchanges during the early Asian market on Friday.
4 hours ago, Pepe multisig wallet and Wintermute Trading deposited 17.3T $PEPE ($18M) to exchanges.
3 hours ago, an early buyer of $PEPE dumped 1.88T $PEPE for 1,010 $ETH($1.68M) on DEX.
And the price of $PEPE has dropped ~16% today. pic.twitter.com/C540Mq8jzN
— Lookonchain (@lookonchain) August 25, 2023
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Pepe Coin Price Analysis and Market Outlook
Trading around $0.000000893 on Friday, Pepe coin price has dropped about 18 percent in the past 24 hours. However, the meme coin’s daily traded volume was up about 310 percent to hover around $391.79 million, amid heightened uncertainty. With Pepe’s market capitalization at about $347 million, down 18 percent in the past 24 hours, it is evident that more traders were offloading their bags on time in fear of a possible rug pull.
Moreover, there was no official communication to the community from the developers like the Shibarmy often gets from Shytoshi Kusama to deconstruct the FUDs.
However, popular crypto analyst, Miles Deutscher, highlighted that now could be the best time to buy Pepe amid heightened speculation and fear. Miles argued that Pepe’s price is currently sitting on a strong support level on the weekly time frame. Miles noted
Although profit-taking in crypto is normal (from a team’s perspective), the suddenness/obscurity of the transactions, coupled with the lack of communication raises some red flags. However, for those willing to take on some risk – it’s important to note that PEPE is sitting on major support. From a technical perspective, if we see a decent response here – it may be a good buy. .
The meme coin’s volatility is expected to rise over the weekend amid increased bearish sentiment on Bitcoin and other top digital assets. As a result, Pepe’s price could continue declining further until the developers clarify the reasons for changing multi-sig settings and depositing high amounts of coins at once on exchanges.
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