- The pepe memecoin (PEPE) burned 6.9 trillion tokens worth $5.5 million, causing the price to rise 31%.
- Burning tokens permanently removes them from circulation and was done to quell concerns over the team’s multisig wallet.
- The team now holds 3.79 trillion tokens worth $3.72 million, which is a small portion of daily trade volume.
- The burn comes after controversy in August when developers allegedly stole millions from the project’s multisig wallet.
- The rise coincided with bitcoin rallying to $35k, fueled by optimism around a potential spot ETF approval.
- The 1.6% total supply burn has pushed the memecoin to a two-month high.
The token burn was conducted to permanently remove tokens from circulation and ease concerns around the developers’ multi-signature wallet holdings. The wallet previously held 10.69 trillion PEPE but now only holds 3.79 trillion PEPE worth $3.72 million after the burn.
“The burn quells concerns over the team’s token holdings. The team now holds 3.79 trillion tokens ($3.72 million), which would have minimal impact if sold on the open market as 24-hour trading volume has surged to $397 million,” said Oliver Knight, cryptocurrency analyst.
The controversy first erupted in August when rogue developers allegedly siphoned millions of dollars worth of PEPE coins out of the project’s multisig wallet. The team burn aims to reassure investors following the alleged theft.
At 1.6% of total supply, the significance of this burn cannot be understated. It represents a real commitment from developers to limit their control over the circulating PEPE supply.
The memecoin’s ascent also coincided with bitcoin breaching $35,000 for the first time in 17 months, as optimism builds around a potential spot bitcoin ETF approval in the US.
But PEPE has notably outperformed the broader crypto market over the past day, highlighting the impact of the developer’s actions to address community concerns and boost trust. The memecoin is now trading at its highest level since early September as a result.