Pepe Coin (PEPE) kickstarted another memecoin frenzy in the crypto space. The frog-themed token, launched in Mid-April, skyrocketed to a peak of $0.00000420 on May 5. However, the token seems to have run its course and is now on the back foot. Since its peak on May 5, PEPE has fallen by almost 60%. The token has fallen by 10.3% in the last 24 hours.
However, the falling value of Pepe Coin (PEPE) seems to be the least of its concerns, compared to the fact that investors are not being able to withdraw their profits. The project was always plagued by liquidity issues, but now those problems seem to have caught up with the project. One user, in particular, bought 2.52 trillion PEPE tokens for 0.013 ETH, or about $26. However, the value of the 2.52 trillion PEPE tokens has skyrocketed to $4.6 million.
Apart from PEPE, the investor also held $4.9 million worth of LADYS, which also cannot be withdrawn. LADYS has also banned the investor due to being too early. However, the investor is not being able to withdraw profits because they were blacklisted by PEPE.
Why did Pepe Coin ban the investor?
According to unconfirmed claims, the trader is connected to a maximal extractable value (MEV) bot. Despite this setback, the trader’s inability to sell their PEPE and LADYS tokens may impact prices if one takes into account the quantity the dealer holds. Liquidity could suffer from a block sale.
Since MEV bots can affect gas fees, front-run transactions, and clog the network, worries about their effects on Ethereum’s security and fairness have risen. The blacklisting of the trader happens amid PEPE and LADYS experiencing an activity surge on Ethereum. More bots will probably be used when trade volumes of meme tokens increase in order to take advantage of their popularity. At press time, PEPE was trading at $0.00000172, down by 0.6% in the last hour.