Memecoin Market Declines, Market Cap Drops Over 3% In 24H

Key Points:

• The Memecoin market has lost more than 3% of its capitalization in the past 24 hours.

• The memecoins simultaneously dropped in price after the negative news about the massive release of PEPE.

• Pepe (PEPE), HarryPotterObamaSonic10Inu (BITCOIN), and Mog Coin (MOG) were among the top three decliners.

According to data from Coingecko, a series of memecoins price declines it caused the memecoin market to lose more than 3% of its capitalization over the past 24 hours at $14,753,006,072.

The prices of HarryPotterObamaSonic10Inu (BITCOIN), Pepe (PEPE), and Mog Coin (MOG) are among the top three decliners, with 25.2%, 20.9%, and 19.7% respectively. Additionally, among other well-known Meme tokens, Dogecoin (DOGE), Shiba Inu (SHBI), and FLOKI (FLOKI) experienced 24-hour declines of 2.4%, 2.9%, and 4,4%.

However, Doge Killer (LEASH) and Milady

Meme Coin

(LADYS) have increased by 9.4% and 8.5% in 24 hours.

Top Meme Coins by Market Cap. Source: Coingecko

The drop in the price of memecoins can be attributed to the effects that the entire

cryptocurrency

market suffers due to economic uncertainties in the traditional economy. However, the strong push from PEPE is also an important source.

Today, on-chain data simultaneously shows that early investors are massively dumped after the multisig wallet of the memecoin project PEPE and Wintermute Trading sent 17.3 trillion tokens ($18 million) on Binance, OXK, and Bybit exchanges. This immediately led to a 16% decline in PEPE prices.

Throughout 2023, the iconic character-inspired token “Pepe The Frog” gained a considerable following, attracted numerous investors, and multiplied its market cap many times.

With the projects confusing actions and low activity when the PEPE project stopped working on X (Twitter) during the past two weeks, investors were increasingly confused and worried.

The Truth Behind

PEPE Coin

Founder Revealed, Community Suspects The Scam Project

In a recent revelation, a Twitter personality known as KOL Pauly, boasting a substantial following of over 150,000 on the platform, has pointed fingers at the true identity behind the enigmatic PEPE coin.

According to PAULY, the mastermind behind PEPE is none other than Zachary Testa, currently residing in Arizona and recognized in online spheres as z (@degenharambe) and Lord Kek (@LordKekLol).

Born in 1997, Testa graduated from Arizona State University in 2018 and pursued a career in professional photography.

The accusation goes further, with PAULY alleging that Testa and his associates have raked in substantial profits from PEPE coin, even reportedly acquiring luxury assets like a Lamborghini.

Remarkably, members of the PEPE team appear to share affiliations with prominent entities like Binance and SushiSwap.

Contradicting these revelations, Larva Labs founder Pauly himself contends that the actual founder of Pepe is Testa, emphasizing his background as a landscape photographer and his academic achievements.

What raises eyebrows is the claim that this lucrative venture has not extended any recognition or compensation to the original creator of the “Sad Frog” image, Matt Furie.

Adding complexity to the situation, Testas alleged involvement in photography outside the digital realm seems to have encountered its share of controversies.

Despite Pauly‘s history of endorsing the PEPE coin, suspicions have arisen due to his own rumored association with the coin’s foundation. As of now, evidence supporting the claims remains scant.

Meanwhile, PEPE coin, an unconventional memecoin launched earlier this year, has undergone significant network activity. Reports indicate substantial sell-offs by the development team.

Recent activities include the transfer of around 16 trillion PEPE coins (equivalent to $15.08 million) to various exchanges, causing a 15% drop in PEPEs value.

Additionally, the PEPE teams multi-signature wallet configuration has transitioned from 5/8 to a mere 2/8, with 6.9% of PEPE (29 trillion) finding its way to exchanges.

Further adding to the intrigue, an early PEPE investor managed to collect 524 ETH (approximately $870,000) by selling a sizable portion of their tokens.

These events have left investors understandably concerned about the potential for rug-pull scenarios, wherein project creators lure investments only to disappear, leaving contributors with substantial losses. The saga continues as the crypto community grapples with uncertainty.

At the time of writing, PEPE coin was down more than 26% amid uncertainty in the community.