After the value of the frog-themed memecoin Pepe (PEPE) dropped by approximately 15% due to recent modifications in a multisig wallet and concerns about potential developer manipulation, a significant PEPE holder spent 320 Ethereum (ETH) valued at $529,000 to acquire 640 billion PEPE tokens.
According to an X (formerly known as Twitter) post shared by the on-chain analytics platform, Lookonchain. The post also revealed that the whale purchased the PEPE at an average buying price of $0.000001163.
Continuing its previous actions, the same whale made another move on Aug. 25, following its earlier transactions. On June 5, 2023, the whale used 280 Ethereum (equivalent to $507,000) to obtain 500 billion PEPE tokens. Furthermore, on May 6 of this year, the whale invested 253 Ethereum (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 meme coin 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 this wallet, originally containing $10 million in PEPE value, resulting in a reduction of mandatory transaction signatures. This change, which lowered the necessity from five out of eight signatures to just two, prompted 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 meme coin has plunged by more than 20% within the past 24 hours alone.
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 has declined to $0.0000008738, just slightly above its lowest point in the 24-hour span at $0.0000008046. During the same period, the trading volume for PEPE experienced a significant surge of 276.51% compared to the previous day, reaching a remarkable total of $283.05 million.
Over the last 24 hours, the decrease in PEPE’s price further contributed to its lackluster performance in the previous 30 days. As a result, the meme coin witnessed a decline of over 30% during the month.
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