After the value of the frog-themed memecoin Pepecoin dropped by approximately 15% due to recent modifications to a multisig wallet and concerns about potential developer manipulation, a significant Pepecoin holder spent 320 Ether valued at $529,000 to acquire 640 billion Pepecoin tokens.
According to a post on X (formerly known as Twitter) shared by the on-chain analytics platform Lookonchain, the whale purchased the Pepecoin (PEPE) at an average price of $0.000001163.
On June 5, 2023, the whale used 280 Ether (ETH) — equivalent to $507,000 — to obtain 500 billion PEPE tokens. Furthermore, on May 6 of this year, the whale invested 253 ETH — worth $481,000 — to acquire 164 billion PEPE tokens.
— Lookonchain (@lookonchain) August 25, 2023
Possibly seizing the opportunity presented by PEPE’s reduced price after a significant sell-off, this specific whale appears to have acted fast. The memecoin experienced a surge in selling activity, potentially prompting the whale’s action. The turmoil centered around adjustments made to a multisig wallet managed by the developers.
Modifications were applied to the wallet, originally containing $10 million in PEPE. The changes lowered the number of required signatures to sign transactions from five out of eight signatures to just two of eight, prompting immediate suspicions.
Changes made to a project’s critical financial structure naturally give rise to worries about a potential “rug pull,” where developers vanish with investors’ funds. Following these developments, the value of the once-popular memecoin plunged by more than 20%.
Related: Is the 25% drop in PEPE, SHIB and APE a sign of a deepening crypto bear market?
As of the time of publication, the trading price of PEPE had declined to $0.0000008738, just slightly above its lowest point in the 24-hour span, which was $0.0000008046. During the same period, the trading volume for PEPE surged by 276.51% compared to the previous day, reaching a total of $283.05 million.
Over the last 24 hours, the decrease in PEPE’s price further contributed to its lackluster 30-day performance. As a result, the memecoin witnessed a decline of over 30% during the month.
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Source: COIN TELEGRAPH