Pepe (PEPE), one of the biggest new memecoins of 2023, recently suffered a partial rug pull when its anonymous developers abruptly sold almost $16 million worth of the token on August 24. This unexpected move caused the price of Pepe to plummet by as much as 26%, leaving crypto investors and memecoin enthusiasts perplexed about its future prospects.
Although the manner in which the developers sold the tokens was less than ideal, there are some who still see potential for Pepe. Reetika Trades, a crypto trader, believes that the incident will have negligible effects on the token’s long-term outlook. According to her, Pepe is a memecoin with no promise of utility, so the departure of some developers does not make a significant difference. She also points out that the massive sell-off reduces the threat of future dumps of the token, leading to a healthier environment in the long run.
Despite its early setbacks, supporters of Pepe argue that it has the potential to make a comeback. Horse, a pseudonymous trader, suggests that the removal of the remaining token supply from the hands of the developers who sold can have long-term benefits, especially if Pepe aims to follow a similar trajectory to Dogecoin (DOGE). The sentiment is shared by a recent report from Kaiko, a crypto data provider, which indicates that the liquidity of Pepe held up well despite the crash in price.
Not everyone is convinced that Pepe’s future is bright after the rug pull incident. Analysts from Santiment caution traders to expect higher volatility, even though Pepe became the top trending cryptocurrency following the allegations of a rug pull. A prominent trader named Kaleo goes even further, expressing hope for the complete collapse of Pepe. He remains on the sidelines despite the new direction announced by the Pepe team, believing that the token might rally to new highs just to defy his decision to distance himself.
In the midst of the turmoil surrounding Pepe, an anonymous team has emerged with a new spin-off of the original token. They claim that this new PEPE token is the true essence of decentralized finance. According to the team, the new Pepe token embodies what the old Pepe token should have been – decentralized, community-driven, with no team tokens, and deflationary.
The rug pull incident and subsequent sell-off by anonymous developers have undoubtedly shaken the Pepe community. While some remain optimistic about its future, viewing the reduced threat of potential dumps as a positive development, others foresee higher volatility and express doubts about Pepe’s resilience. Only time will tell if Pepe can recover and truly become a force to be reckoned with in the world of memecoins. In the meantime, the emergence of the new PEPE token offers an alternative for those seeking a decentralized, community-oriented memecoin.