Former Pepecoin promoter turned crypto influencer, Jeremy “Pauly” Cahen, has thrown a spotlight on alleged insider trading within the Pepecoin team in the Pepecoin scandal. This controversy emerged following the reported theft of approximately 16 trillion PEPE tokens.
Also, Pauly has taken matters into his own hands by revealing the identities of team members and divulging their wallet activities. This triggered on-chain analysts to scrutinize significant Pepecoin transactions involving insiders.
Allegations and Legal Actions
In an update on August 26th, Pauly disclosed a staggering revelation. He stated that the Pepecoin team is in possession of approximately $16-17 million worth of PEPE tokens, distributed across nine separate wallets.
Contrary to expectations, these insiders have chosen not to liquidate their holdings on the open market. Instead, they have skillfully offloaded their PEPE tokens from a centralized exchange (CEX) wallet, thereby establishing a significant short position.
Pauly has not shied away from pursuing justice in the face of these allegations. He boldly stated,
“I’ll likely be working with multiple branches of law enforcement to ensure that @degenharambe and the rest of his partners on the @pepecoineth team get brought to justice as soon as possible. Their greed and crimes have caused undue harm to many.”
Alongside these claims, Pauly has publicly shared personal information about several individuals associated with the Pepecoin team. He further meticulously detailed their transaction activities. He adamantly asserts that the team’s explanations concerning multisig wallets and PEPE holdings are entirely false and misleading.
Insider Trading Exposed
On-chain analyst Yazan corroborates these allegations, revealing that insider selling of PEPE holdings has already commenced. An astonishing 400 billion PEPE tokens have been sold, a development that coincides with Pauly’s exposé of Pepecoin team members.
In response, Yazan has called upon major crypto exchanges, including Binance and OKX, to enforce stringent measures to prevent unauthorized transactions from insiders.
Impact on Pepecoin’s Price
The ripple effect of this scandal has taken a toll on Pepecoin’s value. The token’s price experienced a sharp 15% decline due to selloffs executed by implicated team members. Despite a brief 10% surge, the PEPE price struggled to maintain momentum and ultimately faced a decline. This further amplified the already prevailing negative sentiment within the community.
As of the time of writing, CoinMarketCap reports the PEPE price at $0.00000090, reflecting a 7% decrease over the past 24 hours. The aftermath of this scandal continues to reverberate across the Pepecoin community and the wider cryptocurrency landscape, prompting both introspection and calls for heightened transparency and ethical conduct within the industry.
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