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Following a decline of around 15% in the value of the frog-themed memecoin Pepe (PEPE) due to recent changes in a multisig wallet and worries regarding possible developer manipulation, a notable PEPE holder invested 320 Ethereum (ETH), equivalent to $529,000, to purchase 640 billion PEPE tokens.
An X (formerly Twitter) post from the on-chain analytics platform Lookonchain disclosed this information. The post also indicated that the whale acquired the PEPE at an average purchase price of $0.000001163.
In line with its previous activities, the same whale executed another transaction on Aug. 25, following earlier purchases. On June 5, 2023, the whale utilized 280 Ethereum (approximately $507,000) to secure 500 billion PEPE tokens. Additionally, on May 6 of this year, the whale invested 253 Ethereum (valued at $481,000) to obtain 164 billion PEPE tokens.
A whale spent 320 $ETH ($529K) to buy 640B $PEPE again 3 hrs ago.
The whale also spent 280 $ETH ($507K) to buy 500B $PEPE on June 5 and spent 253 $ETH ($481K) to buy 164B $PEPE on May 6.
The average buying price is $0.000001163.https://t.co/9zRGywTADphttps://t.co/EiUQUrHWqc pic.twitter.com/BjReDraBgv— Lookonchain (@lookonchain) August 25, 2023
Seemingly taking advantage of PEPE’s lowered price following a substantial sell-off, this particular whale appears to have acted swiftly. The meme coin faced a spike in selling pressure, likely triggering the whale’s response. The unrest was linked to changes made to a multisig wallet overseen by the developers.
Adjustments were made to this wallet, which initially held $10 million in PEPE value, resulting in a decrease in the required transaction signatures. This modification, which reduced the requirement from five out of eight signatures to merely two, raised immediate concerns.
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Alterations to a project’s essential financial framework naturally lead to fears of a potential “rug pull,” where developers abscond with investors’ assets. In the wake of these events, the value of the previously favored meme coin has dropped by over 20% within the last 24 hours alone.
Related: Is the 25% drop in PEPE, SHIB and APE a sign of a deepening crypto bear market?
At the time of publication, the trading price of PEPE had fallen to $0.0000008738, just above its lowest point in the 24-hour period at $0.0000008046. During this timeframe, the trading volume for PEPE saw a significant increase of 276.51% compared to the previous day, reaching an impressive total of $283.05 million.
Over the past 24 hours, the decline in PEPE’s price further exacerbated its underwhelming performance over the preceding 30 days. Consequently, the meme coin experienced a drop of over 30% during the month.
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