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Pepecoin Controversy Unfolds: Insider Trading Claims Emerge Amid Token Theft
In a developing crypto saga, former Pepecoin promoter turned crypto influencer, Jeremy "Pauly" Cahen, has brought insider trading allegations against the Pepecoin team. The allegations surfaced following the reported theft of a staggering 16 trillion PEPE tokens. Pauly's exposé sheds light on the identities of team members and their wallet activities, while on-chain analysts reveal additional significant Pepecoin transactions involving insiders.
In a recent update on August 26, Pauly unveiled that the Pepecoin team holds a substantial sum of approximately $16–17 million in PEPE tokens, spread across nine wallets. Surprisingly, these insiders chose not to sell their holdings outright. Instead, they strategically executed sales from a centralized exchange (CEX) wallet, setting up a considerable short position.
Pauly expressed his intentions to collaborate with law enforcement to bring the alleged culprits within the Pepecoin team to justice. He accused them of causing harm through greed and illicit actions.
Moreover, Pauly disclosed personal information about the implicated Pepecoin team members and meticulously documented their transaction activities. He vehemently refuted the team's explanations involving multisig wallets and their claimed PEPE holdings, asserting their falsehood.
Insider selling of PEPE holdings has reportedly begun, with nearly 400 billion PEPE tokens already sold, correlating with Pauly's revelations about the team members. On-chain analyst Yazan has called for exchanges like Binance and OKX to institute preventive measures against transactions originating from insiders.
The unfolding controversy has impacted Pepecoin's market price, resulting in a 15% decline due to team-led selloffs. Despite a brief 10% surge, PEPE's value couldn't sustain its momentum, contributing to the prevailing negative sentiment within the Pepecoin community.
At present, according to CoinMarketCap, the PEPE price hovers around $0.00000090, reflecting a 7% decrease in the last 24 hours.
As the Pepecoin turmoil continues to evolve, the crypto community watches with interest as the allegations and their implications unravel.
