Pepe price collapses after ‘rug pull’ rumors by developers

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Last Updated on 4 March 2024 by CryptoTips.eu

Those that fail to learn from history are doomed to repeat it, says the famous saying attributed to Winston Churchill, the prime minister of the British during the second world war.

That is how you can describe the path of memecoin pepe, which completely collapsed due to a so-called ‘rug pull’ by the developers of the cryptocurrency. Many who bought the memecoin now feel cheated by the developers, but if you know a little about the history of crypto you knew that there was a risk this was coming.

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Signatures

The memecoin Pepe the Frog or PEPE had its heyday in May of this year, in the weeks following its launch. Since then, interest in this umpteenth internet meme-based cryptocurrency plummeted, as has its price. This week, however, the price completely collapsed after rumors of a rug pull by the developers spread online.

Pepe the Frog’s developers’ multisig wallet (which thus requires several digital signatures) recorded some strange movements. First, the number of signatures required to sell the developers’ tokens was changed from a minimum of five to only 2 signatures (out of a total of 8 possible signatures).

After that, the wallet sent a whopping 16 trillion PEPE tokens, or about $16 million at the time of this transfer, to a hitherto unknown address.

Moments later, the coins were listed for sale on various crypto platforms and the price promptly dropped 20%.

It is a bit reminiscent of the ‘rug pull’ of the famous ‘sushi’ coin in 2020, which was also hyped by the developer (who operated as the anonymous ‘chef Nomi’) himself and then dumped.

So always be careful with memecoins. As we have warned several times, these are very volatile.

In May of this year, Wallstreetbets coin lost some 90% in one day.

Depositphotos.com / rafapress

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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