Aug 28, 2023

A member of the Pepecoin team has blamed some rogue developers on the project for last week’s unprecedented transfers out of the token’s multisig wallet and effectively stealing millions worth of the meme coin, according to a post on X (formerly Twitter).

Video transcript

Pepe coin says bad actors on teams stole $15 million worth of Pepe and I am not shocked one bit. So apparently 16 trillion Pepe, that was the biggest red flag was probably the supply when you have a coin that has a lot, a lot, a lot, a lot, a lot of supply. That's generally a big red flag for me. But apparently 16 trillion Pepe tokens were moved out of the project's multis centralized exchange or centralized walt last week. Um Three point that was 3.8% of the total supply and the the tokens were sent to exchanges to be sold. The number of signatures required to operate the multi signal wallet also changed from 5 to 5 out of 8 to 2 out of eight, which is another big red flag. Uh The project blamed former team members for the transfers and said the launch that the team included bad actors led by big egos and greed and then they removed themselves from the multi sig and deleted the social media account. So congratulations to the Pepe team for being absolutely horrible during a bear market. Um I feel actually just really sad for everybody who put money into this. This is something we talked about on the channel. And I told my audience this is not something I'm really interested in. If you guys wanna have fun with your disposable income, that's your business. But understand this thing is probably gonna end up going to zero. However, what happens if the community actually takes over the coin like they did with Terra Luna and they can kind of make it a community orientated coin. I don't even know if that's something that they can do. But um thoughts anybody, anybody, well, here's Zach on this one. The burn by the pepe, you live, you live by the meme coin, you died by the meme coin and all this shady business transpired. We talked about it Friday, there was all sorts of crazy stuff going on. Now, we have at least one telling of what happened. Now, we seem to know a little bit more according to the people coming out and saying this stuff. So it's all caveat uh et cetera. But yeah, we get a little bit of closure to something that on Friday seemed odd at the very best and you know, clearly something weird is going on here. So meme coins remain very, very risky, right? And I think Coindesk and others in the space who cover meme coins always sort of caveat the meme coin story, meme coin stories with that, right? That stuff like this can happen this is one flavor of a bad outcome. There certainly are other bad outcomes in the world of pump, pump and dump meme coins. This one is particularly unfortunate, I think because it does suggest some uh core uh some core incompetency among the team that was behind this thing. So I would just second Wendy's comment, you know, again, tread carefully in the world of these things. It's sort of like their key feature is speculation. They're sort of like the most casino part of the crypto ecosystem. Um and they should be treated cautiously and we see it like time and time again that these things do happen. Um You know, for every doge or say ship that uh lasts and rides its initial hype cycle and into something a bit more lasting. There are many other situations like this and others um that get people hurt and get people uh to be sour on the space. So it's certainly something uh to be cautious about and uh watch out out there in the world of mean coins. Folks, these are, these can be bad and this is just, you know, again, one flavor of bad but yeah, I'll sauce it to you. Yeah, I heard Wendy's comments. Um I think that none of us are shocked to see this happen. What I'm interested to see is like how the project recovers from here. What they do next. I think there are all of these really interesting stories that happen in the meme coin ecosystem and the D I ecosystem of projects suffering similar fates. But maybe the community takes over. Maybe new developers come on board and the project turns into something that's a little bit more fruitful. So I'm interested to see how this pans out. I do feel sorry though for the people who, you know, this was their first time interacting with any crypto project. Maybe they got into it because of social media because of the memes because it's fun. Like we've spoken about so much on the show and then this happens. I think it leaves a sour taste in everyone's mouth and does no good for adoption which, which is what we all want. And so I'm just gonna wag my finger at the developers who were allegedly involved in this will we, we spoke about this on Friday and you weren't here. And the big question was why on earth would they change the multi sig wallet from 5 to 2? Like what benefit would they get? Would that give them if any? And I'm still wondering that while we talk about the story and I don't know if you have any answers for me, I can answer that. Yeah, but like, but if the five people all signed off on making it, two people couldn't, they all have just signed off on cashing out. Well, be assuming that all five people did and maybe it was just like the two people had the other people's keys as well. Right. So, like it's just about the keys, not necessarily the people. So we don't know. And that's one of the things with these pepe coins and all these me coins is you have no idea what you're purchasing. And a lot of people wrote this all the way up and they wrote it all the way down and congrats, you played the game and you get to talk about it at conferences. Now. You are a pepe holder bag holder for life and that's great. And I think a lot of people got into crypto that way for people put a lot of money into this. They also have learned a long life lesson, which will not be as great. But that's the, that's the life of the main coin like as a says, right? I think this is, this is what you sign up for, is what you're gonna get. So it is what it is. I think one thing that interesting to talk about those like having these meme coins in the midst of crypto winter in the midst of like a very deep bear market where people don't talk about what's going on in the space. They're not like really interested in things in the space. And then you do have like a flash in the pan with these meme coins where they kind of bring back like the excitement of a bull market for a moment. And then it also reminds us of like what happens during a bull market, which is these things like burn out very quickly. Last thought on it is I wonder what happens to these multi stakeholders, if they're us citizens. And sec does look into something like this. There is precedent now after the last few years of people who have been rug pulling to this size going and to get having like legal action against them. So, if there's a story like that in the next 6 to 12 months, I wouldn't be super surprised, Wendy. I honestly don't have anything more to say about this. Like we've been covering it on the channel and it's just, it's, it just sucks like this industry sucks sometimes that's all just people do like ridiculous things and I just will never understand, but it's not meant for me to understand and to everybody listening, please always consider taking profit. I don't think it's a bad thing to consider taking profit ever or just maybe, like, not participating in things because it's not fun all the time.

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