Pepe Coin Fall From Grace: What’s Turning The Whales Away?

Question

Popular meme coin PEPE has recently come under the spotlight due to significant whale activity that has left many investors concerned about its future. Large holders of PEPE tokens have been selling their holdings at a loss, leading to increased market uncertainty

A recent report notes the meme coin’s price movements are strongly influenced by its presence in the social sector. However, over the last week, social activity surrounding PEPE has taken a notable downturn, with social engagements falling by 28% and social mentions decreasing by 18%.

Whale Exodus: Massive PEPE Transfers Raise Eyebrows

Lookonchain, a blockchain analysis platform, shed light on a puzzling development as it uncovered that three wallets, potentially controlled by the same individual, had transferred a staggering 1.5 trillion PEPE tokens to the popular cryptocurrency exchange, Binance

An hour ago, 3 wallets (probably the same person) deposited 1.5T $PEPE ($1.2M) into #Binance at a loss of $242K.

These 3 wallets withdrew 1.5T $PEPE($1.45M at the time) from #OKX after the Pepe team dumped 16T $PEPE on August 24. pic.twitter.com/StKCuGMGFZ

— Lookonchain (@lookonchain) September 6, 2023

At current exchange rates, these tokens are valued at approximately $1.2 million. What raises eyebrows is the fact that these wallets sold their tokens at a price lower than when they initially acquired them, resulting in a collective loss of $242,000.

This mass transfer followed an unexpected 16 trillion PEPE transaction on August 24, where the tokens were worth a staggering $1.45 million.

Official Response: ‘Ex-Team Members’ Accused Of Theft

According to a separate report, the team behind PEPE issued a statement alleging that “three ex-team members” had accessed the project’s multisig wallet without the consent of others and absconded with a substantial 16 trillion PEPE tokens.

This revelation sent shockwaves through the community and further fueled the uncertainty surrounding the meme coin.

As of today, the market cap of cryptocurrencies was barely unchanged at $1.02 trillion. Chart: TradingView.com

While the recent decline in social activity and the questionable whale transactions have cast a shadow over PEPE’s future, an intriguing aspect emerges from the data. Despite the reduced social engagement, the weighted sentiment around the memecoin has continued to grow

This suggests that, at the time of writing, there are more positive comments and sentiments surrounding PEPE than negative ones, potentially indicating resilience within the community.

As of the most recent data available, PEPE is trading at $0.000000801962 according to CoinGecko, with a modest 0.5% gain in the last 24 hours. However, over the past seven days, it has experienced a 6.5% decline in value

Investors and enthusiasts are now closely monitoring the situation, hoping for clarity and stability to return to the PEPE eco. The meme coin’s future hangs in uncertainty, as the crypto community watches for further developments and the resolution of the alleged theft involving the 16 trillion PEPE tokens.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Box Mining