Deflationary meme currency Pepe Coin is embroiled in a web of controversy surrounding a significant token theft and accusations of insider trading.
As the Pepe Coin saga unfolds, an on-chain analyst known as Yazan alleges that individuals with privileged access have commenced the liquidation of their PEPE holdings, with a substantial volume of approximately 400 billion PEPE tokens already divested.
Yazan has issued a fervent call to action, urging prominent cryptocurrency trading platforms such as Binance and OKEx to take proactive measures to quell the alleged insider trading practices.
The claims come on the heels of a post on social media from the official Pepe account detailing how 16 trillion Pepe tokens — valued at $15 million — were illicitly transferred to crypto exchanges OKX, Binance, Kucoin and Bybit before being sold. See below.
Insider trading claims
Jeremy “Pauly” Cahen, a one-time Pepe Coin marketer, has also alleged that the individuals behind the meme coin have engaged in insider trading following the vanishing of a staggering 16 trillion PEPE tokens.
With a determined resolve, Cahen, or “Pauly,” has taken the step of revealing the identities of the team members in question, along with a meticulous breakdown of their wallet transactions. On-chain observers have noted a series of substantial Pepe Coin transactions attributed to insiders.
Addressing the situation on Aug. 26, Cahen revealed that the Pepe Coin team possesses a substantial cache of 16–17 million PEPE coins distributed across nine distinct wallets. In a surprising twist, insiders opted against a wholesale sell-off, instead strategically assuming a substantial short position by gradually offloading PEPE tokens from a controlled exchange (CEX) wallet.
Cahen indicated that he intends to collaborate with law enforcement on the matter, and take action against the “pepecoineth” team which, he claims, disseminated falsehoods to the crypto community in order to enhance their personal gains.