According to CryptoPotato: The memecoin Pepe (PEPE) experienced a 13% drop in value on Thursday after the crypto community observed unusual modifications to the multi-signature wallet used to promote the token's adoption. The multisig wallet's threshold for token transfers was changed from 5 of 8 to just 2 of 8 wallet signatures, which is significantly lower than what is typically expected for storing reserves for popular coins. The multisig wallet is designed to reserve a portion of Pepe's supply to provide liquidity for future exchange listings, liquidity pools, and bridges.

Onchain investigator ZachXBT supported the claim, noting that the wallet has now sent $15.6 million worth of PEPE tokens to various exchanges, including Binance, OKX, and Bybit. The remaining amount in the multisig is 3.8% of the token's supply ($10.4 million). The analyst also pointed out that the unlocked PEPE tokens were held in a multisig with unknown signers, meaning they could sell the tokens at any time. It is currently unclear whether all wallet signers initially belonged to the same two individuals as now.

Compromised keys were responsible for the $600 million Ronin Bridge hack last year, which remains the largest DeFi hack in history. PEPE is currently trading at $0.0000009472, down 13.74% on the day and 29.61% from last month.