Unraveling the PEPE Coin Conundrum: What’s Causing the Token’s Downward Spiral?
In Brief
Crypto influencer Pauly sharedthat Zachary Testa is the founder of the meme coin PEPE.
PEPE’s team address moved a staggering 16 trillion PEPE tokens across four different cryptocurrency exchanges, resulting in a 15% decline in the price of PEPE coin on August 25.
The wallet's security framework has transitioned to a less secure 2/8 multi-signature setup, raising doubts within the community.
On August 26, the official X profile of PEPE coin reported announcedthat three team members abruptly withdrew funds from the multi-signature wallet and exited the project. Approximately 16 million PEPE tokens were channeled to various crypto exchanges.
Pauly, a former promoter of PEPE coin,disclosedclaiming that the team currently holds between $16 and $17 million in PEPE distributed across at least nine different insider wallets.
During the last weekend, notable events in the PEPE coin community emerged, unveiling a string of significant incidents, sparking discussions and stoking concerns. The coin is under pressure as the dwindling trust in the project, compounded by the departure of its founders, permeates the community.
As a result, these developments triggered a notable drop in PEPE’s market value.
On August 25, crypto influencer Pauly shared that Zachary Testa, also known as @degenharambe on X (former Twitter) and @LordKekLol on TG, is recognized as the founder of the meme coin PEPE.
In a thread, the influencer shared controversial posts on Twitter disclosed personal information about Testa, including his wallet addresses and insider distribution wallets linked to PEPE.
He mentioned that the founder of PEPE is not only a meme creator but also a landscape photographer with a documented history of breaking laws in various protected areas, including indigenous land and locations with drone restrictions.
The online community's reaction was polarized, with some rallying behind Pauly while others condemned the doxxing as an invasion of privacy.
On the same day, PEPE’s team wallet transferred an eye-watering 16 trillion PEPE tokens across four different cryptocurrency exchanges, leading to a significant price drop of 15%. Additionally, the total funds transferred were reported to be around $15.08 million (at the time of writing).
Furthermore, there has been a notable change in the security dynamics of the PEPE coin multi-signature wallet. The wallet's protection mechanism, which was previously ensured by a 5/8 multi-signature arrangement, has been considerably weakened. It now relies on a more susceptible 2/8 multi-signature setup, leading to mounting skepticism within the community.
In a subsequent move, a major holder of PEPE coin acquired 640 billion Pepecoin tokens with an investment of 320 ETH, equating to roughly $529,000 at the time. This same wallet had previously made significant investments in PEPE during May and June of this year, according to Lookonchain .
These unfolding events have amplified the community’s anxiety and mistrust, as fears of a potential 'rug pull' began to arise.
On August 26, the official X profile of PEPE coin reported announced that three team members unexpectedly withdrew funds from the multi-signature wallet and distanced themselves from the project, leaving the remaining team members with complete control.
Approximately 16 million PEPE tokens were funneled to various crypto exchanges.
In a public statement, another co-founder assured that the remaining ten trillion PEPE in the multi-signature wallet is secure.
"They subsequently distanced themselves from the multi-signature setup to evade any link to $PEPE, deleting all of their social accounts and leaving me behind with only a message stating, 'the multisig has been updated, you are now in full control,'\" he expressed, in an announcement .
Pauly, a former promoter of PEPE coin, disclosed that the team manages $16 to $17 million in PEPE across at least nine different insider wallets. Moreover, the influencer further challenged the authenticity of the PEPE coin team’s claims regarding the complete safety of their assets.
Following this series of incidents, the price of PEPE coin experienced a drastic decline. Currently, it is valued at $0.0000000002185.
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