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The value of the frog-themed memecoin Pepe (PEPE) has decreased by nearly 15% following recent modifications to a multisig wallet and new token transfers, raising concerns about a potential “rug pull” by its creators.
The accusations — along with the adverse price movement — emerged after $16 million worth of Pepe tokens were transferred from the developers’ multisig wallet to various cryptocurrency exchanges on Aug. 24.
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1 hour ago, the Pepe multisig wallet altered the number of signatures needed from 5/8 to 2/8. This change occurred after $15.7 million worth of $PEPE was sent to exchanges.
A summary of what we know: pic.twitter.com/bxBxp6Nzqz— ASXN (@asxn_r) August 24, 2023
As per data from blockchain custody platform Safe Global, the wallet address transferred 16 trillion Pepe tokens — roughly 3.8% of the total supply — to three exchanges and an unverified wallet address.
Data indicates that $8.2 million worth of Pepe was sent to OKX, $6.5 million to Binance, and $434,000 to Bybit, while an additional $400,000 was moved to an unidentified wallet.
Owners of the Pepe multisig wallet transferred 16 Trillion PEPE. Source: Safe Global
After the transfer of the 16 trillion Pepe tokens to exchanges, the developers made a notable adjustment to the team’s multisig wallet, which at the time of this report still holds $10 million worth of Pepe.
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Data from Etherscan reveals that the wallet now requires only two out of eight signatures — down from the previous five out of eight — to authorize any transfers.
The alteration in the number of signatures needed to approve transactions from the multisig wallet. Source: Etherscan
Importantly, this transfer of funds represents the first instance of Pepe tokens being sent from the project’s multisig wallet to exchanges.
Related: Is the 25% decline in PEPE, SHIB, and APE indicative of a worsening crypto bear market?
Numerous memecoin investors regarded Pepe as the next significant memecoin, with some asserting that — during the next bull market — the frog-themed meme token could potentially “flip” the original memecoin, Dogecoin (DOGE).
The outflow of funds from the multisig may cast doubt on this perspective for some investors.
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