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PEPE Price Spikes 10% Following Community Address On Rumored Rug Pull

The value of PEPE, one of the most promising assets in the second quarter of 2023, has been faltering in recent weeks. According to CoinGecko data, the meme coin has been in a 33.6% price decline in the last 14 days.

The PEPE price took a significant hit in the past week, tumbling by more than 20% in a matter of hours. This negative price action was triggered by the rumors of a rug pull orchestrated by the project deployers. 

On Thursday, August 24, about $16 million worth of Pepe tokens were moved from the developers’ multi-sig wallet to various crypto exchanges, spreading FUD (fear, uncertainty, and doubt) across the community.

The team behind the meme coin has now published an announcement, addressing the community on what happened in the past few days.

‘Three Rouge Ex-Team Members Responsible For $16 Million Withdrawal’

On Saturday, August 26, one of the anonymous developers behind the Pepe project shed more light on the mysterious $16 million withdrawal from the project’s multi-sig wallet via a post on the official X (formerly Twitter) account.

According to the team member, three ex-team members initiated a series of unexpected withdrawal transactions and transferred the “stolen” Pepe tokens to various crypto exchanges.

A part of the community address explained:

The multi-sig (wallet) was set up to require 3/4 signers present for an approval. Yesterday these 3 ex-team members came back behind my back, logged onto the multi-sig, stole 16 Trillion/ 60% of the 26 trillion multi-sig tokens, and sent them to exchanges to sale. They then removed themselves from the multi sig in an attempt to absolve any association to $PEPE, deleting all of their social accounts and leaving me behind nothing but a message stating “the multi-sig (wallet) has been updated, you are now in full control.”

The anonymous developer established that these former members have been difficult to work with since the inception of the Pepe project. “There has often been conflict, and the majority of the team involved in $PEPE creation started to distance themselves after the first week of project inception”, they said.

While apologizing for the inconvenience and losses caused by the “bad actors,” the project member claims that the remaining 10 trillion Pepe tokens in the multi-sig are “safe” and out of the reach of “nefarious” ex-team members.

Unsurprisingly, the online crypto community had mixed reactions to the project developer’s address. While some individuals seemed convinced by the team member’s account, others raised questions about the sincerity of the claims.

PEPE Jumps By Nearly 10% – Is A Recovery On?

The value of PEPE reacted positively to this address, surging by about 9.6% to reach $0.000000956641. Although it has experienced some correction, the meme coin’s price is still well (roughly 9%) above its seven-day low of $0.000000824545 reached in the early hours of Friday, August 25.

As inferred earlier, panic-induced selling was primarily responsible for the recent PEPE price crash. With confidence seemingly restored, investors will likely be banking on a price recovery.

Fortunately, the daily Relative Strength Index (RSI), an indicator that tracks the balance between the buying and selling pressure of a token, is in the oversold zone for the first time ever. When in the oversold region, the RSI often signals that a trend reversal is on the horizon.

According to CoinGecko data, PEPE currently trades at $0.000000898317, registering a 1.4% price jump in the last 24 hours. With a market cap of roughly $375.9, the meme coin is the 97th-largest cryptocurrency on the market.

PEPE

 

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PEPE Token Tumbles 20% Amid Suspicious Activity – Details

PEPE, the once-promising meme coin that garnered attention in the past quarter, suffered an unforeseen blow on Thursday as it succumbed to the grip of FUD (fear, uncertainty, and doubt). Despite making waves in recent months, PEPE’s momentum fizzled out by August, exacerbated by a wave of negative sentiment that battered the altcoin.

The current price of PEPE stands at a mere $0.000000870194 according to CoinGecko, sustaining a 21% slump in the last 24 hours alone. Over the span of seven days, the meme coin incurred losses of 15.3%, signaling a distressing trend for its holders.

Multisig Wallet Changes Fuel PEPE Rug Pull Allegations

The root of this downturn traces back to recent alterations in PEPE’s multisig wallet, coupled with newfound token transfers that ignited a prevailing fear of a potential “rug pull” orchestrated by the project’s developers. 

On August 24, nearly $16 million worth of Pepe tokens were transferred from the developers’ multisig wallet to various crypto exchanges, sending shockwaves throughout the community.

The tokens flowed out of the PEPE multisig wallet, directed towards addresses affiliated with notable platforms such as Binance, OXK, and Bybit. 

What further exacerbated concerns was the transformation in the transaction approval process within the vault-like wallet. Previously requiring consensus from five out of eight wallets, it had inexplicably shifted to a meager two out of eight.

This unprecedented maneuver marked the first instance in which the project’s crucial multisig, responsible for safeguarding a significant portion of the token’s supply, executed such an outward transfer.

Investor Reactions And Realized Losses

While the authenticity of the allegations remains unverified, investors swiftly leaped to conclusions, suspecting the development team of orchestrating a scam for personal gain. Contrary to this sentiment, closer analysis suggests that had foul play been intended, the transfer’s magnitude would have been substantially larger.

Nevertheless, the panic-induced sell-off rapidly gained traction, precipitating an abrupt nosedive in PEPE’s price and fostering an environment dominated by fear.

On a broader scale, the network experienced a surge in Realized Losses, reaching a three-month peak and registering the third-highest single-day losses since the token’s inception. Ultimately, investor losses tallied a staggering $14 million.

The rollercoaster journey of the PEPE meme coin, from soaring highs to a precipitous fall, underscores the impact of FUD within the volatile cryptocurrency landscape.

While the true intentions behind the wallet changes and token transfers remain shrouded in uncertainty, the incident serves as a stark reminder of the fragility inherent in meme-based tokens.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Blockcast

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Binance In Murky Waters? Analyst Explains Why BNB Must Stay Above This Price

The last few days have been eventful for the crypto market following a major crash on Thursday that resulted in the loss of $1 billion in market cap. In another unnerving development, it appears that Binance, the world’s largest exchange, may be in some form of trouble as a crypto analyst shares some insight on the company.

Binance To Record Heavy Losses If BNB Trades Below $212, Analyst Says

According to an X post on Friday, a crypto analyst with the name MartyParty painted a rather gloomy picture for Binance and its 150 million users. The analyst began by stating there was a reason the Binance Coin (BNB) is yet to fall below $212. 

After Bitcoin tumbled on Thursday, BNB, like most cryptocurrencies, also plummeted in value, falling from $231.85 to $215.02. Although the token did attempt a market rebound on Friday, it soon fell again but found support at the $214 price zone. 

MartyParty believes there is a reason why BNB is gaining support at these levels away from the $212 price mark. According to the analyst, the Binance exchange has a BNB-backed loan set to liquidate at $212. 

Initially, the liquidation price for the said loan was $220, but it was later shifted in June. Although the analyst didn’t reveal the exact amount of this supposed loan, it seems massive as he stated it could lead to a “fatal margin call”  for the Binance exchange upon liquidation. 

According to MartyParty, Binance is presently in “self-preservation mode” with its CEO Changpeng “CZ” Zhao selling BTC from a particular wallet to purchase TUSD, which in turn is invested in BNB to keep the Binance native token above $212. 

In addition, this crypto analyst also made another interesting theory behind Binance’s supposed problem. He stated that US financial regulators are allegedly selling crypto holdings of the US Marshals Service in order to forcibly liquidate Binance’s loan position and kick CZ out of the crypto industry. 

Crypto Community Reacts To Worrying Post On Binance

Following MartyParty’s post, there have been multiple reactions, with some crypto users siding with the analyst and nudging investors to dump the BNB token, saying that Binance is currently in a similar position as the FTX exchange in 2022.

The FTX exchange collapsed in November 2022 due to a cascade of events triggered by reports which stated that Alameda Research – FTX’s trading arm – held an unusually large amount of FTT – FTX native cryptocurrency similar to Binance’s BNB. 

During the hype of the debacle, an inside source revealed that Alameda Research was quietly collecting loans from FTX, which were collateralized by the FTT token. 

However, on the other hand, some other crypto analysts have disagreed with MartyParty’s post calling it false and only aimed at spreading FUD. A particular analyst with the handle Alice on X has described the whole report as a “bizarre conspiracy theory” as the loan in question was not taken out by the Binance exchange but rather by Venus Protocol, a lending protocol on the BNB chain.

For now, Binance, CZ, or the US government are yet to issue any statement confirming or denying the post by the analyst MartyParty. 

At the time of writing, BNB is trading at $215.55, with a 1.59% decline in the last day, according to data from CoinMarketCap. Meanwhile, the token boasts a market cap of $33.16 billion and ranks as the fourth biggest cryptocurrency in the market.

Binance

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Binance To Activate Bitcoin Lightning Network Withdrawals

After suspending Bitcoin withdrawals multiple times in the past 24 hours, the world’s largest crypto exchange announced plans to create a lasting solution.

The firm now plans to include the Bitcoin lightning network for BTC transactions. The only downside is that the alternative comes with a higher fee. But the exchange revealed plans to cushion it.

Binance Plans To Enable BTC Lightning Network Withdrawals

According to a recent report, the exchange is working toward enabling Bitcoin lightning network withdrawals. This move will help clear all backlogs on BTC transactions over the past few days.

Notably, Binance suspended Bitcoin transactions twice within the past 24 hours. On May 7, the exchange halted BTC transactions, stating that network congestion was the reason for its action. It later reported the resumption of the transactions.

Later the firm announced the temporary suspension of Bitcoin transactions again today, May 8. According to its statement, there’s a high backlog of pending  BTC transactions. So, it plans to clear up the backlog by introducing the Bitcoin lightning network withdrawals with higher transaction fees.

Increasing Demands In The Bitcoin Network

The growing hype around the BRC-20 tokens on the Bitcoin blockchain surged demands on the network. Galaxy Research said BRC-20 tokens contributed 50% of the total Bitcoin transactions on May 2. Subsequently, BTC fees hit a new multi-year high.

Binance explained that there’d been an increase in the BTC network gas fees recently. However, its fee didn’t account for such a surge. Hence, the exchange would readjust its operational charges to include the sudden fee surge.

Further, the exchange stated that it would monitor on-chain activity to initiate timely adjustments once needed. The team is already making moves to enable BTC Lightning Network withdrawals for the present situation.

Notably, Binance witnessed more outflows due to the spike in BTC network demands. According to CryptoQuant, Binance recorded over 162,000 BTC outflows, the biggest BTC withdrawal in the history of crypto.

Binance To Activate Bitcoin Lightning Network Withdrawals

While addressing the rising wave of FUD among its users, Binance reminded users that all funds are ‘SAFU.’ Also, the firm is putting in all necessary measures to ensure the safety and stability of the exchange.

Featured image from Pexels and chart from Tradingview

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Crypto Exchange Binance Dispels FUD Of A ‘Financial Black Box’

In addition to the macroeconomic headwinds, the Binance rumors and the uncertainty surrounding Grayscale/DCG are clouding the sentiment in the Bitcoin market. In a renewed attempt to dispel the “FUD,” Binance released a detailed report today in which the world’s largest crypto exchange addresses current questions from the media and the community.

Even though analytics firms like CryptoQuant and Nansen recently confirmed the existence of customer funds on-chain, one of the biggest accusations against Binance at the moment is that it is a “financial black box”. Critics claim that the exchange led by Changpeng Zhao is refusing to disclose financial information.

The exchange counters these charges in its statement. It says that it does not have to disclose a detailed financial status for two reasons: first, it is not a publicly traded company; second, Binance is financially autarchic and doesn’t need external funding. In addition, it has no “intention to go public at this time.”

In addition, Binance discloses “operational and financial information” in the countries where it operates, to the extent necessary, as “required by local regulators.” The exchange further added that “In some cases, the disclosure process takes up to six months due to the sheer volume of information.”

Further, Binance says that its capital structure is debt-free, can cover all ongoing costs with revenue, and keeps assets fully separated.

“Based on the principles of ‘customer first’ and ‘openness and transparency’, Binance will continue to promote asset reserve verification on the chain to make it easier for the outside world to query and verify user asset storage,” the statement elaborates.

Other Binance “FUD”

A major argument against Binance’s integrity has also been the recent resignation of accountant Mazar and the question of why the company does not hire a “Big Four” auditor. As the statement reiterates, Mazars withdrew from all crypto companies, not just Binance.

Regarding the audit by a “Big Four” auditing firm, the exchange clarifies that they have not worked with any crypto company to verify on-chain reserves so far.

As for Coinbase’s collaboration with Deloitte, Binance says it is important to distinguish that the audit is aimed at the financial status of the listed company, not the verification of on-chain reserves.

On-chain verification of encrypted corporate reserves is a very new field. At present, we are still actively communicating with companies willing to provide verification services for encrypted companies, and will share the latest progress with you soon.

In addition, the exchange sets the record straight that the verification of Bitcoin reserves is just the first step, and on-chain proof of reserves of some mainstream currencies will follow “as soon as possible.”

Bitcoin Price Eyes $16,900

Confronted with the uncertainty and massive levels of FUD swirling the market, the Bitcoin price is currently holding critical levels of support, although a retest of $16,600 does not seem out of the question. If BTC manages to break through the tenacious resistance of $16,900, a continuation into the zone up to $17,500 could be conceivable.

BTC/USD at Binance

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Binance Controversy Continues As Experts Warn Of Serious Fallouts Due To FUD

Binance rumors were the all-dominant topic last week after the FOMC meeting. Rumors of insufficient proof of reserves and the pullback from accounting firm Mazars, allegations of a bank run and insolvency, as well as CZ’s interview on CNBC have dragged the Bitcoin and crypto sentiment and prices down.

Charles Edwards of Capriole Investments pointed out in a Twitter thread that this “FUD is really bad for the industry,” pointing out that there is “nothing” backed by data that is legitimately worrisome, “but when fear is great enough, it doesn’t matter.”

“If current withdrawal rates continue, expect more exchanges to go down – not from poor practices – but bankruptcy,” Edwards contended.

Is The Binance FUD “Thinly Veiled Xenophobia”?

The analyst suggests that all exchanges are being hit extremely hard by current market conditions. They have to deal with a price drop of more than 80%, a drop in trading volumes of more than 90% and a reduction of reserves by more than 50% “due to irrational panic.”

As Edwards analyzes, even the U.S. exchanges Coinbase, Gemini and Kraken have been hit badly. They are currently experiencing a 60% drop in their Bitcoin reserves over the past year.

Bitcoin US exchange reserves

Addressing Bitcoin maxis, in particular, Edwards said:

I love Bitcoin. But the maxis screaming for cold storage only, don’t realize that if everyone actually went to cold storage, your precious Bitcoin price would approach $0. Influencers spreading FUD are literally damaging the industry & their net worth just to pump engagement.

At the same time, Edwards emphasized that his opinion on Bitcoin has not changed. He said the current price movement is largely fueled by panic. Still, Edwards spoke from the heart of many crypto enthusiasts when he turned to Changpeng Zhao and said:

And CZ, let’s stop dilly dallying and put this issue to bed with a _real_ audit.

Edwards was joined by market analyst Alex Kruger, who denounced the people who view bank runs as healthy stress tests. Those people “clearly haven’t thought this through. When funds leave, trading activity diminishes, and so do trading fees. And then, many funds never come back.”

Ryan Selkis, the founder of Messari, claimed much of the Binance FUD is “thinly veiled xenophobia.” Selkis also added: “I’m all for the stress test on deposits and think it’s bad that such a high percentage of volumes runs through a single exchange. I also don’t love the tone of some of the critiques. Sorry!”

Notably, on-chain analytics firm CryptoQuant recently conducted an analysis of Binance’s reserves. The company’s data shows that the amount of BTC Binance said it held as liabilities at the time the PoR report was conducted is consistent with CryptoQuant’s reserve data.

Why Doesn’t Binance Take A Big Four Auditor?

In Friday’s much-discussed interview on CNBC, Binance CEO Changpeng Zhao said that “Big Four” auditing firms are currently unable to conduct an audit for a cryptocurrency exchange. The hosts then countered that Coinbase is working with Deloitte.

Blockworks was told today by a Binance spokesperson that the “Big Four” audit firms – famously Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers – are “not currently prepared” to conduct a proof-of-reserves audit for a private crypto company.

As reported by the news outlet, the spokesperson went on to say that Binance is going ahead with the Merkle tree proof of reserves to show that its assets exist on the blockchain. However, the exchange is still looking for a partner to verify the proof of reserves:

We have reached out to multiple large firms […] and we are still looking for a firm who will do so.

At press time, the Bitcoin price was at $16,734.

Bitcoin BTC USD 2022-12-19

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Intel Announces Mining Chips’ First Clients: BLOCK, Argo Blockchain, and GRIID

Intel ’s play to get into the bitcoin mining market might end up being the story of the year. In a post titled “Blockchain and the New Custom Compute Group,” Raja Koduri reveals a little of the company’s playbook. At Intel, he’s the senior vice president and general manager of the Accelerated Computing Systems and Graphics Group. 

Related Reading | Jack Dorsey’s Block To Democratize Bitcoin Mining With Open Source Mining System

In the article, Koduri says, “we are focusing our efforts on realizing the full potential of blockchain by developing the most energy-efficient computing technologies at scale.” Intel’s play is deeper and harder than previously thought. They’re going all-in in the blockchain business. With a twist that every corporation is claiming for.  

“Today, we at Intel are declaring our intent to contribute to the development of blockchain technologies, with a roadmap of energy-efficient accelerators. Intel will engage and promote an open and secure blockchain ecosystem and will help advance this technology in a responsible and sustainable way.”

That’s right, they’re tackling the problem “in a responsible and sustainable way.” And they’re calling the mining chips “accelerators” for some reason. Will the name catch on?

“Intel Labs has dedicated decades of research into reliable cryptography, hashing techniques and ultra-low voltage circuits. We expect that our circuit innovations will deliver a blockchain accelerator that has over 1000x better performance per watt than mainstream GPUs for SHA-256 based mining.”

This new line of Intel products responds directly to the ESG crowd. The bitcoin-consumes-too-much-energy FUD people. Soon enough, they’ll have to face Intel ’s PR machine.  How can bitcoin consume too much energy if Intel’s product “has over 1000x better performance per watt than mainstream GPUs for SHA-256 based mining”?

BTC price chart for 02/14/2022 on Kraken | Source: BTC/USD on TradingView.com
Who Are Intel ’s First Clients?

We can’t prove it, but, all of these companies probably knew years ago about Intel’s plans to release a bitcoin mining chip. Again, Raja Koduri:

“Our blockchain accelerator will ship later this year. We are engaged directly with customers that share our sustainability goals. Argo Blockchain, BLOCK (formerly known as Square) and GRIID Infrastructure are among our first customers for this upcoming product. This architecture is implemented on a tiny piece of silicon so that it has minimal impact to the supply of current products.” 

When NewsBTC analyzed Intel’s chip announcement, we summarized the situation as:

“This could be huge. Intel plans to enter the Bitcoin mining space with a cleverly marketed “ultra-low-voltage energy-efficient” ASIC chip. Considering that the chip shortage severely delayed the next generation of ASIC miners, this is tremendous. And, more importantly, it opens up the door for Bitcoin miners manufacturing in the USA. And in the rest of the Western world, even. ”

After that, we analyzed the situation’s implications:

“Now, the open-source Bitcoin miner that Jack Dorsey’s Block is working on makes a lot more sense. Theoretically, the silicon chip is the only part of an ASIC machine that can’t be bought in a hardware store. With that problem solved, by no less than an industry leader with immense manufacturing power, the sky’s the limit. If this whole thing materializes, expect a huge leap forward in the further decentralization of Bitcoin mining.”

Notice how Block is one of the first clients. And how Intel had the energy-efficient ASIC chip marketing ready from the get-go. And how Koduri even addressed the chip shortage in the last line there.

Intel’s Bonanza Chip’s Future

Reading between the lines, it’s clear that this is not a secondary project for Intel. They have high hopes for this low-energy chips play. Here, Koduri discusses the Custom Compute Group:

“The objective of this team is to build custom silicon platforms optimized for customers’ workloads, including blockchain and other custom accelerated supercomputing opportunities at the edge.

Onward, we aspire to leverage technologies from our zetta-scale computing initiative to deliver energy-efficient solutions.”

Related Reading | Green Energy: In NY, Bitcoin Mining Saved The Oldest Working Hydroelectric Plant

You read it here first, Intel ’s play to get into the bitcoin mining market might end up being the story of the year.

This is not financial advice, though.

Featured Image by geralt on Pixabay | Charts by TradingView