Over the weekend, Pepe grabbed the spotlight on the market, but not for its performance or innovation, but for a scandal involving the alleged removal of $16 million by former team members. This incident has catapulted Pepecoin into the limelight, making it one of the top trending assets on the market.
For a relatively small and highly illiquid asset like Pepecoin, the removal of such a substantial amount is nothing short of catastrophic. The asset, already known for its volatility, is now expected to experience even more erratic price movements.
An early buyer of $PEPE sold the remaining 1T $PEPE for 537 $ETH($885K) 7 hrs ago.— Lookonchain (@lookonchain) August 26, 2023
This guy spent 0.0183 $ETH ($36.73) to buy 1.69T $PEPE within 30 minutes after $PEPE started trading, and then sold for 1,001 $ETH ($1.73M), realizing a gain of 54,725x.https://t.co/LI7qxGghDr pic.twitter.com/P9N82QXv4N
The timing of this scandal is particularly damaging for Pepecoin. The asset had already been struggling, having reached its June 16 bottom, effectively nullifying all the gains it had made over the summer. This latest incident has only added fuel to the fire, making recovery an uphill battle for the beleaguered coin. Investors who were riding the meme coin wave are now left to grapple with an uncertain future, as the asset's already limited liquidity is further compromised.
What makes this situation even more intriguing is the broader impact it could have on the meme coin sector. While the high volatility of meme coins can offer lucrative opportunities, it also comes with significant risks, especially when internal governance is shaky at best.
Despite the drama, Pepecoin has secured its place among the top trending assets, albeit for reasons that leave much to be desired. Whether or not it can recover from this setback remains to be seen, but for now, the asset is unlikely to regain its own local highs or provide any bullish outlook for investors.