Over the past 24 hours, a wallet linked to Pepe (PEPE) developers performed questionable activity which resulted in a surge in investor and trader panic. During this period, the number of required signatures for the multisig wallet linked to the project’s developers was reduced. Shortly thereafter, a substantial amount of PEPE tokens were sent to centralized exchange platforms. Subsequently investors and traders feared that this activity was an early sign of a PEPE rug pull by the meme coin’s team. This fear resulted in a large wave of sell volume as PEPE holders attempted to preserve the value of their holdings.
PEPE Developer Wallet Changes Arouse Suspicions
Pepe (PEPE), the frog-themed meme coin, recently captivated the market's attention. However, its rapid rise was met with an equally dramatic fall, as recent events cast doubts on the intentions of its developers and the sustainability of its success.
Pepe, sporting the popular internet meme character, rode the wave of meme-driven cryptocurrency enthusiasm that had previously bolstered coins like Dogecoin. With aspirations of flipping even the famed Dogecoin in the next bull run, Pepe's whimsical charm attracted both curious investors and die-hard meme enthusiasts.
But as the saying goes, "The higher you climb, the harder you fall." The 15% plummet in the price of Pepe came on the heels of unsettling changes that rattled the faith of its community. At the core of the turmoil were changes made to a multisig wallet controlled by the developers themselves. This wallet, which had so far held $10 million worth of PEPE, underwent modifications that reduced the number of required signatures for transactions. This raised immediate suspicions, as five signatures out of eight had now become two. Such alterations to a project's key financial mechanism naturally triggered fears of a "rug pull," a situation where developers make off with investors' funds.
Adding fuel to the fire were the subsequent transactions involving $16 million worth of PEPE tokens. These tokens, accounting for nearly 3.8% of the total supply, were sent from the developers' multisig wallet to several exchanges, namely OKX, Binance, and Bybit. An additional transfer was made to an unverified wallet address, further deepening the ambiguity surrounding the situation.
The act of transferring tokens from the developers' multisig wallet to exchanges was unprecedented. It marked a critical juncture that challenged the very narrative that had driven PEPE's ascent. Investors who had envisioned PEPE as the next big memecoin, capable of outshining even the leading meme coin Dogecoin, were now left questioning the trajectory of their investments.
The central issue here lies not only in the actions themselves but also in the breach of trust that has occurred. Cryptocurrency projects thrive on community engagement, developer transparency, and the belief that the project is genuinely working towards its stated goals. The Pepe community's disillusionment underscores the significance of these elements.
In the grand scheme of cryptocurrencies, Pepe's story is a microcosm of the broader challenges facing the industry. As the space continues to grapple with issues of regulation, trust, and investor protection, incidents like these serve as important lessons. Investors, both new and seasoned, are learning the hard way about the importance of conducting thorough due diligence, understanding project fundamentals, and being cautious of projects that show signs of opacity.
While the fate of Pepe remains uncertain, its rise and fall offer valuable insights into the cryptocurrency market's intricacies. The tale of this frog-themed meme coin serves as a reminder that in this brave new world of digital assets, a catchy concept and viral excitement can only carry a project so far. Trust, transparency, and sound financial mechanisms are the cornerstones upon which lasting success is built.
PEPE’s Founder Identified
Meanwhile, a recent series of revelations has thrown the spotlight onto Zachary Testa, an individual who goes by the online monikers @degenharambe and @LordKekLol. The cryptocurrency community has been buzzing with discussions surrounding Testa's involvement with PEPE, shedding light on his actions and raising ethical concerns.
The disclosure, shared via tweets by PAULY, the founder of NotLarvaLabs, has shed light on Testa's association with PEPE and the apparent lack of ethical considerations in his actions. The revelations have ignited a flurry of discussions, showcasing the profound impact that one individual can have within the cryptocurrency space.
One particularly striking detail that has captured attention is Testa's purported extravagant purchase of an $865,000 purple Lamborghini, funded by his earnings from the meme coin. This lavish acquisition has raised eyebrows and prompted deeper scrutiny due to the fact that Matt Furie, the original creator of the iconic Pepe the Frog, did not reap any financial benefits from the success of PEPE.
Delving further into the matter, it has come to light that Testa and his team boasted connections with the listings teams of major cryptocurrency exchanges, including the likes of Binance and SushiSwap. This association played a pivotal role in ensuring the listing of PEPE on Binance, a move that further propelled the coin's exposure and trading activity.
Adding to the already convoluted narrative, Testa, who is also known for his pursuits in landscape photography, has been implicated in alleged violations of laws in various wilderness areas. These purported transgressions include trespassing on sacred indigenous lands and regions with established drone bans, raising concerns about his ethical and legal compass.
For those intrigued by the revelations, Testa's personal website, ztesta.com, offers a glimpse into his persona and activities. However, it's worth noting that his Instagram account, @zachtesta, has recently been made private, potentially indicating a response to the escalating attention. Among his various online aliases, Twitter handles @ztesties (verified) and @gayretardbitch (unverified, but suspected to be linked to him) provide further insights into his online presence. Born in 1997, Testa graduated with a marketing degree from Arizona State University in 2018.
To corroborate the details, several cryptocurrency wallet addresses associated with Testa have been disclosed. These addresses, including 0x8d2a5bdfc692ad912af77016fc75b49856c369f1, 0xea40b0f6BA2aD77fF2FedAe98Ca67EaefCBCBE4A (badussy.eth), 0x9c46a675350ce1f7ca616bf4fb4e0a542295e302, and 0x40962b448aa899196906646340cb4eb61a8d49b4, offer a potential avenue for further verification and research.
The ripple effects of these revelations have reverberated through the PEPE ecosystem. A significant drop of around 20% in the coin's value from its previous high of $0.00000111 to a low of $0.0000008787 stands as a testament to the profound influence that individual actions can exert within the world of cryptocurrencies. As the community grapples with these revelations, the episode serves as a vivid reminder of the interconnectedness of actions and consequences in this complex digital landscape.
Price Overview
At press time, CoinStats indicated that PEPE’s price drop over the past 24 hours had continued. As a result, the altcoin was down more than 23% - bringing its price down to $0.0000008423.
Price chart of PEPE (Source: CoinStats)
Interestingly, PEPE was not only down on the daily timeframe as the meme coin’s price had been suffering throughout the past month as well. Consequently, PEPE’s weekly performance stood at -21.5%, while the cryptocurrency’s price had also slipped throughout the past 2 weeks and month by 32% and 36% respectively.
Technical Overview
Daily chart for PEPE/USDT (Source: TradingView)
Meanwhile, technical indicators suggested that PEPE’s price could continue to fall in the next 24-48 hours. At press time, the 9-day EMA line was positioned below the 20-day EMA line, which indicated that short-term momentum was in favor of bears. Furthermore, the RSI indicator was in extreme oversold territory at 27.80.
PEPE may be at risk of dropping to its listing price before the end of this week, as it broke below the support and resistance zone between $0.0000008140 and $0.0000009305 during the past 24 hours. This bearish thesis will be invalidated if PEPE can close 2 consecutive daily candles above $0.0000009305.
In this scenario, PEPE may look to climb to the next significant price mark at $0.0000013800 within the coming week. Continued buy support could even elevate the meme coin’s price to $0.0000019020 in the following few days.
Disclaimer: Coinpaper does not recommend that any cryptocurrency should be bought, sold, or held by you. Always conduct your own research and consult your financial advisor before investing in any digital asset.
