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Is PEPE A Rug Pull? Here’s What We Know

Press Releases Crypto News Bitcoinist Is PEPE A Rug Pull? Here’s What We Know

The Pepe token was the foremost token that enjoyed immense success during the meme coin frenzy in May this year. However, the token experienced a significant drop as the frenzy faded out. And now, a recent development seems to suggest that the team behind it may have abandoned the project.

$15.6 Million Worth of PEPE Transferred Out

According to on-chain sleuth ZachXBT, the Pepe team transferred 16 trillion PEPE ($15.6 million) from their multisig wallet to an Externally-owned address (EOA). The wallet then transferred $6.5 million, $8.2 million, $434,000, and $389,000 worth of PEPE to Binance, OKX, Bybit, and another address, respectively.

The initial transfer of $15.6 million raised concerns about a rug pull because the funds formed more than half of the 6.9% vested tokens the team was meant to use to maintain liquidity in the ecosystem.

Furthermore, there was no prior announcement from the team that such a decision would be made and the multisig wallet was left with 10.7 trillion PEPE ($10.5 million) following the move.

The rug pull concerns were further intensified when another X (formerly Twitter) user, reacting to the transfer, pointed out that the Pepe multisig wallet approval threshold had been changed to 2 signatures out of 8.

A multisig wallet is usually considered a safer crypto storage option, especially for organizations, as one bad actor cannot initiate a transaction since multiple signatures are needed to validate it.

So, there were bound to be concerns about the approval threshold of the wallet being changed since it could suggest that someone on the team who had access to the account was trying to rug pull.

Members of the community also questioned whether there was a team or if one person ran the project,

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Author: Scott Matherson

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