In a sudden turn of events, Pepe Coin ($PEPE), the crypto market's third-largest meme coin in terms of market capitalization and a standout performer this year, witnessed a sharp decline of up to 14% in a matter of minutes. This rapid drop was attributed to a surge of Fear, Uncertainty, and Doubt (FUD) circulating on social media platforms.
Previously trading around $0.000001050, Pepe Coin quickly plummeted to new daily lows at approximately $0.0000009. The catalyst for this sudden drop was a social media user's observation that the Pepe multisig wallet had undergone a change in its threshold, now requiring only 2 out of 8 signatures. This change was followed by concerns that a portion of $PEPE had been sent to exchanges.
The alteration of the multisig threshold, formerly set at 5/8 signatures, was recorded on Etherscan, sparking reactions from the crypto community. While some expressed skepticism over the Pepe team's intentions, labeling their actions as "suss moves," others challenged the FUD.
One user on Twitter pointed out that the vast majority of PEPE holdings were in the possession of major exchanges like OKX and Binance. Moreover, the circulating supply aligned with the maximum supply, reducing the risk of a traditional "rug pull." This user emphasized that the token truly belonged to the community.
However, despite the pushback against FUD, the value of $PEPE dropped by around 15% over the course of the day. Short-term price predictions leaned towards a bearish outlook, as $PEPE appeared to be following a downward trend channel, potentially testing its June lows around $0.0000008.
Looking forward, much depends on the validity of the concerns surrounding multisig changes to Pepe's wallet. Should these concerns prove unfounded, the coin's underlying fundamentals present a positive outlook. With an approaching count of 140,000 holders, as per Etherscan, the token's popularity has continued to climb, even without a substantial price surge.
The growing number of holders indicates rising adoption of $PEPE as an investment asset, which could potentially contribute to broader market bullish trends in the future. As the coin's price dips, more buyers might seize the opportunity to accumulate.
For those interested in diversifying their meme coin investments, an alternative to Pepe Coin has emerged from Wall Street Memes, a sizeable retail investing community on the internet. Launching its meme coin token, $WSM, Wall Street Memes has garnered immense attention with over $25 million raised during the presale phase. The coin boasts backing from prominent crypto influencers and analysts, positioning itself as a strong contender in the meme coin arena.
As Pepe Coin faces volatility amid FUD and market fluctuations, the crypto community remains intrigued by the intricate dynamics shaping meme coins' trajectories. The evolving landscape necessitates careful consideration and analysis for investors seeking to navigate the unpredictable journey of meme coin investments.