Aug 25, 2023

PEPE's price is plunging after millions of dollars worth of the meme coin flooded crypto exchanges on Thursday, drawing attention to strange action in the project's multisig, among the single-largest holders of the joke cryptocurrency.

Video transcript

Yesterday, the multi sig for Pepe coin, which is one of those meme coins, a newer one, much less well known than do or she, but just another one of those uh tokens that are associated with the meme that just have no point. Well, this project had a multi sig which with around let's say 30 million, 30 trillion Pepe tokens. And it's, it just, that's about 4% of all the tokens out there yesterday. It sent 16 trillion of those tokens to a series of crypto exchanges presumably to sell them. And the market responded by dumping Pepe coin is down, I think 20%. Now, it's far, far, much farther down from when I first started looking at this. And there's just a whole lot of questions as to why the multi sig would do this. There really isn't that many questions if you ask me because it's pretty clear the founders project have decided to uh uh let's say uh execute some liquidity and get, get millions of dollars worth of their position. But they did it in a weird way. Now, the multis, I had eight signatures on it in order to, to send a transaction, you need five of them to approve. That's how the multi works in the scenario before this money went out yesterday, five of those eight signers approved a change in how the multi sig worked such that you only now need two multi sig signers to, to pass things through to initiate transactions, which is just a really weird thing to do, especially because, well, if you already have the power of five people to rug the wallet, why would you move it down to two? You'll need to do one transaction anyway, I don't know what's going on. Sam. Do you have any insight here? Oh, definitely not. Um That's a good question though. Do I have much insight? I mean, I feel like this is just such an example of, you know, what can go wrong when you're betting on a meme coin. Um or you know, iii I think it, it it should be hard for anybody to be even get angry. Um I, I feel like these are pretty transparently, you know, games um that you know, happen to have money involved and things like this sometimes will happen. Um I don't really have much insight beyond that. Zach, do you have anything more insightful to say? I'm gonna take the maturation angle kind of an odd one, right? But this is fascinating to me that the market saw this and acted so quickly, right? There are clearly professional watchers of these various asserted mean coins who know that there is money to be made and are treating it seriously, right? Mean coins, they're dead serious. People were able to get out before being uh victims of potential uh massive at liquidity. March. So the idea that these, these these coins are professionally watched is something that I think I'm uh tuned into because of this story. And I find that fascinating, just the level of uh diehard observational skills that mean coin traders are exhibiting by making this market activity happen. So that to me is the takeaway and I'm sticking with it, Jen, what do you got? I'm stuck on the question as to why these five people would approve two people to sign the multi. I'm just stuck there and I'm confused. I am just full of confusion. So I'm gonna leave it there. I want to do you guys should go on to Twitter or X or whatever it's called now and just look up Pepe with like the dollar sign. Um And you can see people talking about it and once you get through all the airdrop scams, you can find some people who are really actually too point, maybe very defensive of their favorite mean tokens saying that liquidity. Um you know, I don't know, however, it had enough liquidity that only um an 11% drop um indicates that, you know, maybe this thing has, has legs long term. Um I don't think, wow. All right, that's up there. That, is that one? Wow.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.