Pepecoin (PEPE) price has crashed nearly 85% from its record high of $0.00000448 in May 2023. What’s more, its bearish momentum is likely to continue in September. 

Back-to-back Pepecoin security breaches

Pepecoin has suffered two concerning security breaches in the last two weeks.

First, on Aug. 24, Pepecoin’s rogue founding team members transferred $16 million worth of PEPE tokens to exchanges to potentially sell them. That created concerns across the community about a potential “rug pull scam,“ causing a 30% decline in the PEPE market.

Then, on Sept. 9, Pepecoin’s official X (formerly Twitter) handle confirmed that an anonymous entity dubbed “lordkeklol” had hacked its accredited Telegram channel. 

❌❌ $PEPE Announcement❌❌

The old telegram for $PEPE is hacked and no longer in our control. The “lordkeklol” account has been compromised. Whoever has gained access to this account is using it to push scams and deceive people and launch other coins. This person is lying and… pic.twitter.com/jxlYwoSP1Q

— Pepe (@pepecoineth) September 9, 2023

PEPE price has dropped over 12% since the news, hinting that the back-to-back security breaches have eroded investors’ confidence in the memecoin project.

Pepe whales exit

More evidence about Pepecoin’s investors leaving the project comes from the token’s supply distribution data.

Notably, addresses with a balance between 100 million and 1 billion PEPE (the blue wave in the chart below) control the token’s maximum circulating supply — about 96.5% of it. The supply held by this cohort has dropped substantially since the rug pull concerns emerged.