Pepe Memecoin Faces Partial Rug Pull as Developers Sell $16 Million Worth of Tokens
Summary:
The Pepe memecoin suffers a partial rug pull as anonymous developers sell $16 million worth of tokens, leading to a significant price drop. While some remain hopeful, others express concerns about the future of Pepe. An anonymous team creates a spin-off token claiming to address previous issues.
Pepe (PEPE), the biggest new memecoin of 2023, experienced a significant setback as its anonymous developers unexpectedly sold nearly $16 million worth of the token on August 24. This incident, known as a partial rug pull, led to a steep drop in the price of Pepe, with a decline of up to 26% in the days that followed.
In the aftermath of the rug pull, investors and memecoin enthusiasts are uncertain about whether Pepe can regain its previous prices. Despite acknowledging that the manner in which the developers sold the tokens was less than ideal, crypto trader Reetika Trades remains cautiously optimistic, stating that the event will have minimal long-term effects on the token's outlook. Reetika believes that the developers' large-scale selling reduces the potential future dumping of coins and ultimately makes the token healthier in the long run. However, she also emphasizes that Pepe is essentially a memecoin with no underlying value, making it highly susceptible to extreme price volatility and comparable to gambling.
Another pseudonymous trader, Horse, views the developers' selling as a beneficial move in the long term, particularly if Pepe aims to emulate the success of Dogecoin (DOGE). In a report by crypto data provider Kaiko, it is noted that despite the sudden price crash, Pepe's liquidity remained surprisingly strong, suggesting that the team's potential abandonment of the project may not be its definitive demise.
However, not everyone shares the same optimistic sentiment for Pepe's future. Analysts from Santiment caution traders to expect higher volatility following the rug pull allegations. Additionally, prominent trader Kaleo expresses a bearish view on Pepe and hopes for its complete collapse, as he believes the founders will benefit as long as the coin survives and performs well.
Amidst the turmoil surrounding Pepe, an anonymous team has emerged to create a new spin-off of the original token, claiming that it addresses the issues associated with its predecessor. Describing the new token as the "true essence" of decentralized finance (DeFi), the team emphasizes its decentralized and community-driven nature, with no team tokens and a deflationary mechanism in place.
Published At
8/31/2023 4:52:00 AM
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