March 27, 2024
From Sky-High Hype to Crypto Controversy: PepeCoin's Fall from Grace
Altcoins News

From Sky-High Hype to Crypto Controversy: PepeCoin’s Fall from Grace

Some of the joke coin’s loudest supporters on Crypto Twitter are doubling down despite gloomy vibes following a 16 trillion PEPE liquidation that alarmed investors days ago, even as crypto analysts are declaring PepeCoin dead.

One of PepeCoin’s loudest supporters and a pro-Bitcoin influencer named Jason Williams reiterated his commitment to the joke coin on Sunday.

He declared on Twitter, “I’m a Pepe maxi.” “Pepe is fine and will always be.”

After on-chain sleuths discovered $16 million worth of PepeCoin being moved to cryptocurrency exchanges from one of the project’s primary wallets, the aquatic phenomenon that had teased degens this spring crashed last Thursday. The worst-case scenario was that the tokens were then sold.

Later, a pseudonymous founder of PepeCoin apologized and clarified that a few team members had turned bad. They also said that the 10 trillion PepeCoins that are still in the wallet, which are currently valued at $8.7 million, are “in safe hands” and that the project can continue forward with “clear roads ahead” once the remaining tokens are destroyed and taken out of circulation.

Nevertheless, the fiasco sparked claims of a “rug pull,” or fraud involving engineers who steal money after inflating a token’s value. Since the charges of insider trading began to circulate, PepeCoin’s price has fallen 20% in the past week, to less than one millionth of a penny.

Williams’ endorsement on Sunday came in response to criticism from Swan CEO Cory Klippsten, who has previously criticized PepeCoin’s outspoken supporters. In a jab at self-described Bitcoiners who have warmed up to the meme coin, Klippsten added, “Bitcoiners don’t promote shitcoins.”

The fresh headwinds PepeCoin is experiencing are in sharp contrast to earlier this year, when it was flying high. This is evident from both its all-time high market value of $1.5 billion on May 5 and a plane-pulled banner in Miami that read: “$PEPE IS THE NEXT $BITCOIN.”

According to CoinGecko, the market capitalization of the meme currency is presently $371 million. And among all cryptocurrencies, it is presently the 98th largest.

Other well-known accounts that have embraced the meme coin, such as Twitter personalities Pauly and Alchemenest, mirrored Williams’ pro-Pepe sentiment on Monday. On Monday, Pauly stated that PepeCoin is still in a strong position and that the price movement is far from a “downfall.”

Alchemist declared, “I think we can bring the OG $pepe vibes back.

On Monday, Mando, the fictitious co-founder of DegenzNFT, a provider of NFT analytics and research, justified his backing of PepeCoin. While the creators should take some heat for selling, according to him, it gives the token’s community a greater voice.

“Now at least they barely have any left (might burn) and it’s basically all community,” they said, referring to the previously stated 10 trillion PepeCoin. “I think you are far more likely to get dumped on in other coins.”

According to the social analytics company LunarCrush, PepeCoin’s unfavorable perception on social media has surpassed that of the token’s favorable perception.

According to LunarCrush statistics, the amount of bearish sentiment surrounding PepeCoin has climbed by more than 250% over the last week, while the amount of bullish sentiment has increased by 160% over the same time period.

PepeCoin has held up fairly well, according to a research note from Kaiko, despite the current selloff. PepeCoin dropped 20% in a matter of hours, but the company reported on Monday that centralized exchanges have 300,000 more bids than asks within 0.5% of the mid-price.

“Despite the price drop, liquidity has remained steady across centralized exchanges,” Kaiko stated. “It seems that the team’s potential abandonment of the project is not yet the death sentence that some have proclaimed.”

Image: Wallpapers.com

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