In 2023, Pepe (PEPE) faced a major setback as its anonymous developers abruptly sold nearly $16 million worth of the meme-based cryptocurrency on August 24. This event, known as a partial rug pull, caused the price of Pepe to plummet by as much as 26% in the days following the sell-off.
The official Pepe X (formerly known as Twitter) account revealed that the drop in price occurred because “three ex-team members” went behind their back and sold the tokens without their knowledge. The sudden sell-off raised concerns and left crypto investors and memecoin enthusiasts wondering if Pepe could ever recover to its pre-rug prices.
Despite the unexpected actions of the developers, some traders remain optimistic about Pepe’s future. Reetika Trades, a crypto trader, believes that the event will have “negligible effects” on the token’s long-term prospects because Pepe is a memecoin with no promise of utility. According to her, the sell-off reduces the potential number of coins the developers could dump in the future, which could be healthier for the token in the long run.
Horse, a pseudonymous trader, shares a similar view and believes that getting the remaining supply of tokens out of the hands of the developers who sold them could be beneficial in the long term. He even suggests that Pepe could make a comeback, drawing comparisons to the success of Dogecoin (DOGE).
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However, not everyone is optimistic about Pepe’s future. Analysts from Santiment warned traders to expect “higher volatility” even though Pepe became the top trending cryptocurrency after the rug pull allegations. Kaleo, a prominent trader, expressed a bearish sentiment, stating that he hoped Pepe would completely collapse. He argued that as long as the coin survives and does well, the founders will continue to benefit from it.
Despite differing opinions on Pepe’s future, a report from crypto data provider Kaiko highlighted that the liquidity of Pepe remained strong despite the sudden price plunge. This suggests that the team’s potential abandonment of the project may not be a death sentence for Pepe, as some had speculated.
In response to the turmoil surrounding Pepe, an anonymous team has created a spin-off token called the new PEPE token. They claim that the new token addresses the issues associated with its predecessor, presenting itself as the “true essence” of decentralized finance. According to the team, the new Pepe token is decentralized, community-driven, and deflationary, with no team tokens.
Overall, the fate of Pepe remains uncertain. While some traders see potential for a recovery, others are more skeptical. The rug pull incident has highlighted the inherent risks and extreme volatility of memecoins like Pepe. Investors should approach these assets with caution, treating them more as speculative gambles than traditional investments. As the meme coin landscape continues to evolve, only time will tell whether Pepe can find its way back to pre-rug prices or if it will face further challenges.
