Meme Coin's 15% Drop Rattles Crypto Investors Amid Unusual PEPE Token Transfers
Blockchain experts have raised concerns about recent developments concerning the management of a critical cryptocurrency wallet.
A substantial surge of the PEPE meme coin, valued at millions of dollars, flooded into cryptocurrency exchanges on Thursday, causing unease among investors and leading to a notable decline in its market value. This incident brought attention to suspicious activities happening within the project's multisig wallet, which holds a prominent position as one of the largest holders of this satirical digital asset.
During the course of Thursday, a significant volume of over 16 trillion PEPE tokens was moved out of the multisig wallet, finding its way to addresses associated with platforms such as Binance, OXK, and Bybit. This sequence of events closely followed the discovery by blockchain experts of disconcerting changes in the way the vault-like wallet was managing transaction approvals.
Any reason why the PEPE multisig wallet changed the threshold to just 2/8 signatures? Seems weird, this isn't standard right?— CryptoNoddy (@Crypto_Noddy) August 24, 2023
Also, seems that some has been sent to exchanges pic.twitter.com/1DVZIOvef8
Previously, the wallet's mechanism necessitated the consensus of five out of eight wallets to authorize transactions. However, a sudden alteration made it so that only two out of eight approvals were required.
This unprecedented modification marked the first occasion in which the essential multisig wallet of the project, accountable for a substantial portion of the token's supply, initiated the transfer of the meme coin.
As word spread about these activities, the value of PEPE underwent a significant drop, experiencing a decrease of 15% by the time this report was compiled.