Rashid Ejazi

Crypto Markets Brace for Uncertainty as Regulatory Storm Looms

/

August marked a somber chapter in the world of cryptocurrencies, echoing the depths of despair seen since Bitcoin’s slump in November 2022.

Initially dismissed as a typical summer downturn, this month took a grave turn as liquidations rippled through the derivatives market, erasing 7.3% of Bitcoin’s value and 6.9% of Ether’s.

Even Grayscale’s court victory proved ephemeral as prices reverted to their August beginnings, resulting in a staggering $1 billion in liquidation losses when Bitcoin plummeted to $26,000.

Adding to the industry’s woes, venture capital (VC) investments declined by 42.7% from July to August, amassing a mere $401.9 million across 77 transactions. What had been a thriving crypto investment landscape until May this year is now dwindling.

The Cointelegraph Research “Investor Insights Report” offers a comprehensive monthly overview of the crypto realm, encompassing venture capital, derivatives, decentralized finance (DeFi), regulation, mining, and more.

VC investments in blockchain have been on the decline since Q2 2022, plummeting to a new low of $401 million in 2023.

Infrastructure projects secured 18 separate deals, accumulating $107 million in August, while centralized finance (CeFi) raised $100 million across just three deals.

These investments are typically lagging indicators, suggesting a potential resurgence when overall market sentiment shifts positively.

Yet, as Tim Draper aptly noted in a Cointelegraph Research interview, investors often miss the mark, implying that investing during the downturn may present opportunities to discover quality projects for the future bull market.

The expiration of $1.9 billion in monthly Bitcoin options on August 25 spurred market speculation.

READ MORE: Binance.US Challenges SEC’s ‘Unreasonable’ Demands in Legal Showdown

Although Bitcoin’s price remained relatively stable, excitement swirled when news of the SEC’s court loss against Grayscale surfaced, hinting at a future spot Bitcoin ETF.

The resulting price surge to $28,000 was short-lived, reverting to $26,000. Nonetheless, this range shows signs of market support.

Cointelegraph Research’s team boasts expertise in various fields, merging academic rigor with practical experience.

Their dedication ensures the delivery of the most precise and insightful content in the blockchain domain.

In conclusion, August brought crypto markets to their knees, with dwindling VC investments and a rollercoaster of price fluctuations.

While the landscape may appear bleak, seasoned investors see potential in these trying times, keeping an eye on quality projects for the impending bull market resurgence.

Remember, these opinions serve as general information and are not intended as specific financial advice or recommendations.

Other Stories:

Prominent Executives Predict Bitcoin Could Surpass $100,000 in 2024

Former PayPal President Predicts Bitcoin Lightning Network Revolutionizing Global Payments

2023 Crypto Venture Capital Funding Plummets As Industry Faces Uncertain Times

2023 Crypto Venture Capital Funding Plummets As Industry Faces Uncertain Times

In 2023, the crypto space has experienced a stark contrast to the booming venture capital (VC) funding it witnessed in 2022.

Last year, the first and second quarters together witnessed an influx of a substantial $20.3 billion in VC funding. However, this year has been notably deficient in comparison.

VC funding in the crypto sector has noticeably dwindled throughout 2023. In the initial quarter, approximately $2.6 billion worth of crypto VC deals transpired.

The second quarter fared even worse, with approximately $2.1 billion distributed across 292 funding rounds, marking one of the weakest performances in the realm of crypto fundraising.

Amidst this VC funding slump, Tony Cheng, a partner at the crypto investment firm Foresight Ventures, shared insights during an interview with Cointelegraph’s Zhiyuan Sun.

Cheng discussed the factors contributing to the decreased interest from venture capital firms, strategies for founders to weather the bear market, and the ongoing debate between user growth and profitability for crypto companies.

Cheng noted that many of the prevailing narratives in the crypto space, such as layer-2 solutions, zero-knowledge proofs, and nonfungible tokens (NFTs), have plateaued.

READ MORE: Coinbase CEO Foresees Crypto’s Major Role in 2024 Elections, Urges Clearer Regulations

These once-prominent trends have seen reduced trading volumes on exchanges and in decentralized finance (DeFi), leading Cheng to remark that they have “kind of died down.”

He identified the lack of new innovations as a major hindrance to confidence and investment in the crypto sector.

While acknowledging the limited market activity and user base, Cheng remained cautiously optimistic, anticipating a potential turnaround with improved market conditions and increased enthusiasm for the next crypto cycle.

In response to whether founders should accept less favorable funding terms, Cheng emphasized the paramount importance of survival.

He urged struggling projects to secure capital to ensure their viability in the coming months, as future funding availability remains uncertain.

Cheng stressed that, given the prevailing bear market conditions, pursuing a “growth at all costs” strategy may no longer be viable. Instead, he advised crypto companies to prioritize profitability and financial stability.

In times of economic downturn, survival takes precedence above all else, safeguarding the progress achieved in the crypto space over recent years.

Other Stories:

Vitalik Buterin’s X Account Breached: Over $691K Lost to Malicious NFT Link

Rise of Senior Executives Leading Digital Asset Strategies Signals Investment Firm Transformation

Terra Classic Community Proposes Minimum Deposit Hike to Combat Spam

Digital Asset Regulation in Australia Faces Uncertainty as Senate Debates Key Bill

/

In an exclusive interview with Cointelegraph, Senator Andrew Bragg has issued a stark warning, stating that Australian investors could face exposure to unregulated markets and risk driving investments away from the country if the Digital Assets (Market Regulation) Bill is rejected by parliament.

This caution comes in the wake of the Senate Committee on Economics Legislation’s recommendation on September 4th to reject Bragg’s bill and continue industry consultations regarding cryptocurrency regulation.

Labor Party Senator Jess Walsh, who chairs the Committee, explained the rejection in a report, citing concerns that the bill “fails to interoperate with the established regulatory landscape, creating a genuine concern for regulatory arbitrage and adverse outcomes to the industry.”

Senator Bragg expressed his disappointment with the Committee’s recommendation, emphasizing that it would “expose consumers to an unregulated market and drive investment offshore.”

He underscored the dual purpose of digital asset regulations, asserting that they safeguard consumers while also fostering market investment and activity, which is why the former Liberal government placed them on the legislative agenda in October 2021.

Bragg believes that the rejection of his bill is largely rooted in partisan politics, as several Labor Party members sit on the Senate Committee.

He criticized their decision for stalling the implementation of digital asset regulations in Australia, lamenting that Australia is now approaching the end of 2023 with no plan to enact these regulations.

However, Liam Hennessey, a partner at international law firm Clyde & Co., offered a different perspective.

He suggested that the rejection may be more related to a separate regulatory process, specifically the Treasury’s consultation paper on the government’s “token mapping” exercise.

Hennessey emphasized that the rejection of Bragg’s draft bill may not necessarily be detrimental to crypto regulation in Australia.

Hennessey explained that Senator Bragg’s bill and the feedback it received from the industry would still be considered.

READ MORE:Coinbase Launches Institutional Crypto Lending Service Amid Market Turbulence

The Senate is currently dealing with a multitude of legislation, and the delay should not be overanalyzed.

He concluded that Bragg’s bill and the effort put into it would inform the government’s approach to crypto regulation.

The Australian government initiated a token mapping exercise in August, aiming to identify how crypto assets and related services should be regulated.

In February, the Treasury released a public consultation paper as a foundational step in regulating the digital asset market.

However, there has been little mention of digital assets or the broader regulatory approach since then.

Bragg introduced the Digital Assets (Market Regulation) Bill 2023 in March, intending to protect consumers and promote investors.

The bill contains recommendations for regulating stablecoins, licensing exchanges, and establishing custody requirements.

It is currently before the Senate and is expected to be voted on during the next sitting session.

Other Stories:

Ethereum’s Price Stability Under Threat as Bearish Sentiment and Network Metrics Weigh In

MetaMask Users Targeted in Cryptocurrency Scam Using Government Website URLs

Bitcoin’s Price Correction to $22,000 Grows Likely as Bearish Signals Emerge in Derivatives

The Best Online Casino With Staking Options

/

BetFury is an ecosystem of crypto products for entertainment and additional income. The platform has a native BFG token with many utilities and offers over 8 000 Slots and In-house games with one of the highest RTPs on the market (up to 99.02% RTP). BetFury also has 80+ kinds of Sports to bet on for true fans.

BFG token is listed on top crypto exchanges: PancakeSwap, Biswap, etc. The token has over 55 000 holders, and more than 3 billion BFG are in circulation. The most profitable utility for using tokens is BetFury Staking, with up to 50% APY and the ability to withdraw Staking payouts daily.

The List of BetFury Bonuses

BetFury has created a unique bonus system for beginners and experienced players in over three years on the market. Depending on the Rank, which ranges from 1 to 20, the user receives a percentage of income from bonuses, which complements the overall benefit. 

  • Welcome Pack: Sign up to get up to 1 000 Free Spins and $3 500
  • Cashback: Return up to 25% crypto from your bets. 
  • Rakeback: Receive up to 10% of each bet from the Rank 3 and above.
  • FuryCharge: Get up to the 2x bonus having a total wager of $1 000 spread over a week.
  • Fury Wheel: Spin a free wheel of fortune where you can win crypto up to 1 BTC.
  • Bonus Cabinet Offers: Open thematic packs in your Bonus Cabinet for some Deposit Bonuses and Free Spins.
  • VIP Bonuses: Every user from Rank 10 receives an invitation to the VIP Club. It’s an elite community where all members get a personal VIP Manager, Bounty Bonuses, VIP Welcome Bonuses, etc.
  • 100 Free Spins no Deposit
  • Promo codes: Get Free Crypto, Deposit Bonuses, Free Spins, and Free Bets by entering different Promo Codes. They can be obtained on the website, BetFury social networks, and even here in this article!

The first 10 people to activate the FURY promo code on BetFury by September 25 with a $300 wager will receive 100 FREE SPINS. 

How to Use the Promo code?

  • Create the BetFury account.
  • Enter the Promo code on this page.
  • Ensure the Promo code is valid, and all conditions are met.
  • Enjoy the profitable crypto reward.

Holy Grail of BetFury Gambling

With the advent of so many crypto casinos, it can be difficult to choose one. What sets BetFury apart from others is a combination of carefully developed factors to ensure a secure, private, very entertaining, and rewarding gambling experience.

  • Transparency: Each bet is random, thanks to the SHA256 algorithm. You can use the unique Fairness tool to check the platform’s honesty.
  • Diverse Cryptocurrency Support: In addition to Bitcoin, BetFury covers over 50 different cryptocurrencies, including ETH, TRX, BNB, USDT, etc. This extensive support increases flexibility for users.
  • Security and Privacy: The platform uses top-level security and privacy protocols, including 2FA, in collaboration with well-known security providers such as Gambling Therapy and GamCare.
  • Efficient Transactions: BetFury transactions are cost-effective, charging a fraction of traditional banking fees, and executed quickly. Most of them are processed within half an hour.
  • Generous Rewards: Besides bonuses and Promo codes, you can grab crypto in chats, catch the flying raccoon Mr. Fury for BFG tokens, and use the simple Referral Program.
  • Responsive Customer Support: BetFury customer support is available 24/7 to meet user needs.
  • Solid Reputation and Licensing: As a respected crypto casino in the crypto gambling community, BetFury is licensed by the Curacao Gaming Authority. His active presence on social networks further strengthens his authority and guarantees safety.

In conclusion, the BetFury ecosystem combines the crypto and casino realms. Many bonuses, Promo codes, and other profitable activities indicate an interest in attracting a huge and friendly audience. If you become a part of the platform, you will also grow greatly as a player and crypto investor.

Ethereum Liquid Staking Providers Embrace 22% Cap to Safeguard Decentralization

/

Several Ethereum liquid staking providers are taking steps to uphold decentralization by imposing a self-imposed cap of 22% on their share of the Ethereum staking market.

This strategic move aims to prevent any single entity from gaining too much control over the network.

Among the providers embracing or considering this self-limitation approach are Rocket Pool, StakeWise, Stader Labs, Diva Staking, and Puffer Finance.

Ethereum core developer Superphiz reported these commitments. Puffer Finance, a liquid staking service, also declared its dedication to the self-imposed cap.

Notably, Rocket Pool, StakeWise, Stader Labs, and Diva Staking are actively engaged in committing to this limitation.

The motivation behind setting the cap at 22% is linked to Ethereum’s consensus mechanism, which requires 66% agreement among validators to establish the state of the network.

By capping at 22%, the goal is to ensure that at least four significant entities must conspire in order to influence the finalization of transactions on the blockchain.

Finality signifies the point at which transactions become unalterable within a block.

Superphiz introduced this concept in May 2022, raising questions about whether staking pools would prioritize the network’s well-being over their profits.

Notably, Lido Finance, the largest Ethereum liquid staking provider, did not align with the proposal, voting with a 99.81% majority against self-imposed limitations in June.

Lido Finance currently dominates the Ethereum staking market, controlling 32.4% of staked Ether, in contrast to Coinbase, which holds only an 8.7% market share.

Data from Dune Analytics illustrates the distribution of Ethereum stakers by staking amount and market share, with Lido being the sole entity above the 22% threshold.

READ MORE: BlockFi Advances Fund Recovery Efforts with Court Application

Industry commentators have offered differing perspectives. Some, like “Mippo,” argue that the self-limitation proposal doesn’t concern Ethereum’s alignment principle.

Mippo claims that those pushing for this proposal wouldn’t adopt the same stance if they were in Lido’s position. In their view, these actions reflect rational economic decisions based on market dynamics.

Another observer urges the Ethereum community not to label more user-friendly solutions as greedy products.

Yet, some express apprehensions about potential centralization risks, criticizing Lido’s substantial market share dominance as “disgusting and selfish.”

In summary, multiple Ethereum liquid staking providers are embracing or considering a self-imposed cap of 22% on their Ethereum staking market share.

This initiative aims to maintain decentralization and prevent any single entity from gaining excessive control over the network.

The rationale behind the 22% cap is tied to Ethereum’s consensus mechanism, which necessitates agreement among validators for network state confirmation.

While some observers view these actions as economically rational, others express concerns about centralization and dominance within the market.

Other Stories:

What’s New in Crypto Staking This Year

Bitcoin Holds Strong Above $27,000 as Traders Maintain Bullish Outlook

South Korean Parliamentary Subcommittee Rejects Expulsion Motion Over Cryptocurrency Controversy

Pepe Memecoin’s Price Plummets After Devs Sell $16 Million Worth of Tokens

In 2023, Pepe (PEPE), a prominent memecoin, faced a significant setback as its anonymous creators abruptly sold nearly $16 million worth of tokens on August 24, resulting in a partial rug pull.

The incident prompted a drop of up to 26% in Pepe’s value, causing confusion and concern among cryptocurrency investors and memecoin enthusiasts.

The official Pepe X (formerly known as Twitter) account attributed the decline to three former team members who sold tokens without authorization, exacerbating the token’s already volatile nature.

Despite the turmoil, opinions on Pepe’s future diverged. Reetika Trades, a crypto trader, suggested that the impact of the developers’ departure might be limited due to Pepe’s lack of utility and inherent value.

The sudden sell-off potentially reduced the risk of future coin dumps, which could bode well for the token’s long-term health.

However, the extreme volatility of memecoins, coupled with their speculative nature, underlines the risk inherent in such investments.

Horse, an anonymous trader, emphasized the benefits of removing remaining token supply from the hands of the selling developers.

Drawing parallels to Dogecoin, Horse expressed optimism about Pepe’s potential resurgence and comeback.

Kaiko, a crypto data provider, noted that despite the sudden price crash, Pepe’s liquidity held up surprisingly well, suggesting that the project’s abandonment might not be as dire as initially presumed.

Contrasting viewpoints emerged as Santiment analysts predicted increased volatility for Pepe despite its surge in popularity post-rug pull.

READ MORE: Grayscale Bitcoin Trust’s Negative Price ‘Discount’ Expected to Reverse by 2024

In contrast, prominent trader Kaleo took a more pessimistic stance, expressing a desire for Pepe to collapse entirely.

Following the turmoil, an anonymous team introduced a new spin-off of the original Pepe token, highlighting its alignment with the principles of decentralized finance (DeFi).

The team described the new PEPE token as a truer representation of what the initial Pepe token should have been, characterized by decentralization, community involvement, absence of team tokens, and deflationary mechanisms.

In summary, the eventful saga of Pepe’s rug pull in 2023 underscored the inherent risks and volatility associated with memecoins.

While opinions on Pepe’s future varied, the incident prompted the emergence of a new token striving to embody the ideals of decentralized finance.

The broader memecoin ecosystem continues to be a space marked by excitement, speculation, and uncertainty.

Other Stories:

Digital Currency Group Reaches Agreement with Genesis Creditors for Potential Recovery

dYdX Unlocks $14.02 Million in DYDK Tokens for Community and Trader Rewards

Federal Judge Overturns SEC’s Denial of Grayscale’s Bitcoin ETF

Anticipation Grows as Bitcoin Halving Nears, Experts Predict Surge Beyond $100,000

/

The upcoming Bitcoin halving event, anticipated in less than nine months, has sparked a prevailing belief among analysts and investors that Bitcoin’s value will soar to new heights, potentially exceeding $100,000.

However, the prevailing macroeconomic challenges, the absence of fresh investments into the crypto market, and Bitcoin’s recent price performance, dipping below $30,000, cast doubt on this optimistic projection in the immediate future.

Sue Ennis, the Vice President of Hut 8, shared her insights on the matter during a recent interview with Paul Barron.

Ennis discussed how Bitcoin’s value could breach the $100,000 mark in the coming year and how the halving might impact Bitcoin miners.

Hut 8 presently holds a reserve of 9,152 BTC, with 8,305 unencumbered. The company boasts an installed ASIC hash rate capacity of 2.6 exahashes per second and mined 44.6 BTC in July.

The discussion revolved around whether the increasing complexity of Bitcoin mining could prompt miners to flood the market with Bitcoin.

Notably, Hashrate Index data revealed that surges in mining complexity were often succeeded by drops in Bitcoin’s value.

The interview raised questions about whether miners were selling off Bitcoin due to the impending halving, necessitating more efficient ASICs.

Ennis suggested that the pre- and post-halving price action of BTC might not align with investors’ bullish expectations.

Ennis highlighted unique dynamics within the mining sector, noting that hash rates continued to rise despite Bitcoin’s trading within a particular range. This trend defied conventional wisdom.

READ MORE: Casino Gender: Which Games Do Men and Women Prefer?

She underscored the emergence of new participants in the global Bitcoin network, driven by substantial energy generation, particularly nuclear and renewable, in the Middle East. Unlike US-based miners, these newcomers demonstrated price-agnostic behavior.

To endure the halving’s impact, Ennis proposed diversifying revenue streams for miners.

Beyond Bitcoin mining, miners could explore artificial intelligence applications, allocate warehouse space for GPU-focused AI training firms, offer industrial-level ASIC repair services, or participate in energy initiatives.

Ennis also discussed the potential impact of a spot Bitcoin exchange-traded fund (ETF) launch.

While investors have long anticipated this, regulatory approval has remained elusive.

Ennis believed a spot ETF’s approval would benefit the asset class, yet cautioned that miner equities might face sell pressure as they often functioned as proxy investments for Bitcoin.

Ennis projected a positive outlook for Bitcoin, suggesting a potential price target of $100,000.

She based this on Bitcoin capturing even a small portion of gold’s $13 trillion institutional portfolio, potentially pushing Bitcoin’s price northward.

Notably, the involvement of financial giant BlackRock signaled increased credibility to this outlook.

In summation, as the next Bitcoin halving approaches, predictions of a price surge above $100,000 dominate discussions.

However, economic challenges and recent price trends cast doubt on these predictions, making the future of Bitcoin’s value uncertain in the short term.

Other Stories:

Former FTX CEO Sam Bankman-Fried’s Legal Team Deems Trial Preparations Inadequate

Three Former Team Members Accused of $16 Million Theft from Pepecoin (PEPE) Multisig Wallet

Hashdex Challenges Status Quo with Innovative Approach in Pursuit of Bitcoin ETF Approval

Indian PM Narendra Modi Leads G20 Call for Global Collaboration on Cryptocurrency Regulations

Indian Prime Minister Narendra Modi has emphasized the need for worldwide cooperation in shaping regulations for cryptocurrencies during the annual Group of 20 (G20) summit.

As the current president of the G20, India has taken on the responsibility of championing the establishment of a comprehensive global structure to oversee the use of cryptocurrencies.

Comprising 19 nations and the European Union, the G20 represents major developed and emerging economies globally.

Its role in fostering international economic collaboration is crucial for fortifying the global economic architecture and governance concerning key international economic matters.

In an interview with a local newspaper, Modi discussed the significance of emerging technologies like blockchain and cryptocurrency.

He highlighted that the far-reaching impact of these technologies necessitates a global approach to their regulation.

Rather than being the domain of a single nation or a select group of countries, the rules, regulations, and framework should transcend borders.

Modi drew a parallel with the aviation sector to underscore his point. He likened the unified regulations governing air traffic control and air security to the regulation of emerging technologies like cryptocurrency.

Modi also stressed India’s active role in the discourse on cryptocurrency regulations:

“Under India’s leadership of the G20, discussions around cryptocurrency were broadened beyond merely ensuring financial stability to encompass its wider macroeconomic consequences, especially for economies that are still developing.

READ MORE: Bitcoin’s $20,000 Value Holds Steady Over Six Years When Adjusted for Inflation

Our leadership also organized informative seminars and dialogues that enhanced our understanding of crypto assets.”

On August 1, India issued a statement as part of its G20 presidency, outlining its perspectives on the global cryptocurrency framework.

The proposed guidelines align with existing recommendations put forth by the Financial Stability Board, the Financial Action Task Force, and the International Monetary Fund.

Furthermore, the statement included supplementary suggestions tailored to address the concerns of developing economies.

India’s pursuit of an international cryptocurrency framework has persisted despite its own domestic crypto regulatory landscape being marked by complexities, ambiguity, and substantial taxation.

In 2022, the nation imposed a 30% tax on cryptocurrency gains, triggering an exodus of emerging crypto enterprises and a steep decline in crypto trading activities.

Other Stories:

Co-founder of Tornado Cash Cryptocurrency Service Released on Bail

Former Worldcoin Insider Alleges Unlawful Practices and Mismanagement

IRS Proposes Simplified Reporting for Digital Asset Taxes, Faces Industry Scrutiny

Bitcoin’s On-Chain Activity Echoes Pre-2021 Highs Amidst Reduced Velocity and Investor Caution

/

Bitcoin’s on-chain activity is mirroring patterns reminiscent of its surge to record highs in 2021, recent data reveals.

Ki Young Ju, CEO of CryptoQuant, shared insights on the 25th of August indicating a decline in Bitcoin velocity over several years.

At present price levels, Bitcoin has become relatively stagnant, with the absence of any distinct price trend over recent months leading to reduced buying and selling activity.

This inertia is emphasized by the concept of velocity, which gauges the movement of BTC units within the network.

CryptoQuant’s analysis illustrates that, when viewed on a daily basis, this metric is now at levels that were last observed back in October 2020.

The interpretation of this situation can be bifurcated, according to Ki Young Ju. On one hand, it can be construed as positive, as it signifies that larger holders, often referred to as whales, are retaining their holdings.

Conversely, it can be seen as negative since the lack of transfers to new investors could indicate a potential lack of fresh interest.

READ MORE: IRS Proposes Simplified Reporting for Digital Asset Taxes, Faces Industry Scrutiny

Ki Young Ju pointed to a comparable scarcity of substantial trading activity among high-volume investors, suggesting that the market is currently adopting a “wait and see” approach towards Bitcoin.

Earlier this year, the influx of new capital into the crypto space was evident as BTC/USD initiated a winning streak during the first quarter, eventually resulting in a 70% increase.

Notably, the volume data carries added significance.

In late 2020, after hitting a long-term bottom, the rebound in this metric coincided with Bitcoin’s initial ascent beyond the $20,000 mark, ultimately culminating in new all-time highs a year later.

However, a distinction is drawn between the present circumstances and that of the past.

Bitcoin’s current price of $26,000 is marked by a state of overselling, indicated by its daily relative strength index (RSI), as measured by Cointelegraph Markets Pro and TradingView.

As previously reported, the 12-hour RSI reached its lowest point in five years this month and has yet to recover, underscoring a delay in the resurgence of investor interest.

In conclusion, Bitcoin’s on-chain activity is mimicking the prelude to its meteoric 2021 rally, with reduced movement of BTC units and a potential shift in investor sentiment indicating either a cautious optimism or a lack of fresh enthusiasm in the market.

Other Stories:

Co-founder of Tornado Cash Cryptocurrency Service Released on Bail

Bitcoin’s $20,000 Value Holds Steady Over Six Years When Adjusted for Inflation

Former Worldcoin Insider Alleges Unlawful Practices and Mismanagement

Three Former Team Members Accused of $16 Million Theft from Pepecoin (PEPE) Multisig Wallet

In a recent turn of events, the enigmatic withdrawal of $16 million from the Pepecoin (PEPE) project’s multisig wallet has shed light on its mystery, implicating three former team members in the maneuver.

The value of PEPE experienced a sudden plummet of approximately 15% on August 24, stoking concerns within the community about a potential rug pull.

These fears arose when it became apparent that a substantial amount of PEPE tokens, totaling $16 million, had been withdrawn from the Pepe multisig wallet and promptly dispatched to multiple cryptocurrency exchanges.

Addressing these concerns in an announcement shared on August 25 via X (formerly Twitter), a key anonymous figure from the project’s inception revealed insights into the situation.

According to the statement, three ex-team members executed an unauthorized withdrawal from the multisig, subsequently departing from the project, thereby leaving it solely under the control of the remaining team member.

The announcement detailed the mechanics of the breach: “The multi-sig was set up to require 3/4 signers present for an approval.

Yesterday these 3 ex-team members came back behind my back, logged onto the multi-sig, stole 16 Trillion/ 60% of the 26 trillion multi-sig tokens, and sent them to exchanges to sell.”

The defectors then distanced themselves from the multisig, erasing any links to $PEPE and even vanishing from social platforms, save for a message asserting the transfer of control.

The founding member further asserted that the X account and the remaining 10 trillion PEPE tokens in the multisig were now safeguarded, destined for relocation to a new wallet until a purpose or reduction strategy emerged.

READ MORE: XRP Faces Investor Sell-Off as Whale Transfers 29 Million Tokens Amid Price Dip

The statement also emphasized the disruptive influence of these rogue members on Pepecoin’s progress since its April launch, while expressing a renewed commitment to the project’s positive trajectory in the absence of such hindrances.

While the discordant telegram group for $PEPE remains inaccessible due to hacking, the remaining member pledged to align with the community and prioritize the tokens’ welfare, now that the rogue actors have departed.

Amid a diverse array of reactions to this revelation, which ranged from supportive to skeptical, the value of PEPE has displayed fluctuations.

At the present juncture, the token’s price has surged by 5.7% over the past 24 hours, settling at $0.000000895278.

CoinGecko data confirms a current market capitalization of $382.7 million.

Other Stories:

Bitcoin’s Evolution Accelerates: Recursive Inscriptions Unveil New Horizons Beyond Cryptocurrency

Galaxy Digital Poised to Manage FTX’s Recovered Cryptocurrency Holdings

Binance’s Russian P2P Crypto Exchange Renames Sanctioned Banks Amidst Controversy

1 2 3 4 5 6 33