Influencers Double Down on PepeCoin Despite Recent Rug Accusations

Even while crypto commentators are declaring PepeCoin kaput, some of the meme coin's most vocal proponents on Crypto Twitter are doubling down despite dour vibes after a 16 trillion PEPE liquidation that spooked investors days ago.

Jason Williams, a pro-Bitcoin influencer who’s emerged as one of PepeCoin’s most emphatic cheerleaders, reprised his dedication to the meme coin on Sunday.

“I’m a Pepe maxi,” he said on Twitter. “Pepe is fine and always will be.”

The amphibious phenomenon that tantalized degens this spring tumbled last Thursday after on-chain sleuths spotted $16 million worth of PepeCoin being sent to crypto exchanges from one of the project’s key wallets. Then—the worst-case scenario—the tokens were sold.

A pseudonymous PepeCoin founder later apologized and explained that a few team members had gone rogue. They added that 10 trillion PepeCoin remaining in the wallet—worth $8.7 million, as of this writing—is “in safe hands” and that the project can proceed with “clear roads ahead” after the leftover tokens are burned and removed from circulation.

Still, the debacle prompted accusations of a “rug pull,” or a scam involving developers who vanish with funds after pumping a token’s price. And PepeCoin has slipped 20% over the past week to under one-millionth of a cent since insider trading accusations flew. 

Williams’ affirmation on Sunday followed criticism from Swan CEO Cory Klippsten, who had called out PepeCoin’s vocal supporters hours before. Klippsten took a swipe at self-described Bitcoiners who’ve cozied up to the meme coin and said, “Bitcoiners don’t promote shitcoins.”

Williams declined a request for comment to Decrypt.

PepeCoin’s newfound headwinds come in stark contrast to high-flying days earlier this year, whether that’s its all-time high market capitalization of $1.5 billion on May 5 or a plane-pulled banner in Miami weeks later that said: “$PEPE IS THE NEXT $BITCOIN.”

The meme coin’s market cap is currently $371 million, according to CoinGecko. And it’s currently the 98th largest compared to all other cryptocurrencies.

Williams’ pro-Pepe sentiment was echoed on Monday by other prominent accounts that have taken to the meme coin, like Twitter influencers Pauly and Alchemenest. Pauly said on Monday that PepeCoin is still in a position of strength and experiencing price action that’s far from a “downfall.”

“I believe that we can bring the OG $pepe vibes back,” Alchemist affirmed.

Alchemist told Decrypt that they do not view the recent insider transactions as negatively as the public may portray. “I don’t look at it like a rug,” the pseudonymous trader said in a Twitter DM.

Mando, the pseudonymous co-founder of NFT analytics and research provider DegenzNFT, defended his support of PepeCoin on Monday. While the founders deserve flack for selling, he said it puts the token’s community in a more prominent role.

“Now at least they barely have any left (might burn) and it's basically all community,” they said, referring to the aforementioned 10 trillion PepeCoin. “I think you are far more likely to get dumped on in other coins.”

However, negative sentiment surrounding PepeCoin has outpaced the token’s positive portrayal on social media, according to the social analytics platform LunarCrush.

Bearish sentiments surrounding PepeCoin have increased more than 250% over the past week, while bullish sentiments have increased 160% during that same span, according to LunarCrush data.

Despite the recent selloff, a research note from Kaiko said PepeCoin has held up surprisingly well. Even though PepeCoin dipped 20% in just a few hours, the firm said on Monday that there are 300,000 more bids than asks on centralized exchanges within 0.5% of the mid price.

“Despite the price drop, liquidity has remained steady across centralized exchanges,” Kaiko wrote. “It seems that the team’s potential abandonment of the project is not yet the death sentence that some have proclaimed.”