Cryptocurrency, which grew by 39,000% in a few weeks, turned out to be dangerous

Researchers at GoPlus analyzed the PEPE memcoin smart contract and found three suspicious features. The data aggregator CoinMarketCap even added a note about the possible danger of the token, but later removed it.

As it became known, PEPE developers can:

• blacklist an unlimited number of addresses;
• change the number of tokens available for trading;
• limit the number of transactions with an asset.

Such functions allow creating conditions for blocking, theft, and large-scale dumping of a digital asset by its creators. Any fraudulent actions can significantly affect the wallets of investors who continue to invest in a little-known but rapidly growing digital asset.

At the beginning of the week, PEPE reached a new all-time high, up 39,000% since its launch. While well-known memecoins, Dogecoin and Shiba Inu, repeated the price movement of bitcoin, dropping in value, PEPE managed to take 17th place in terms of trading volume over 24 hours and enter the top 125 digital assets by market capitalization. Currently, PEPE is ranked 3rd in the memecoin category, ahead of Floki and Baby Doge Coin, and 61st in the cryptocurrency ranking.

There is a possibility that the founder of PEPE and the millionaire investor are one person or a team that decided to make money on an «incredible success story» and naive investors. In any case, experts do not advise users to rush to invest in a little-known digital asset, as bots and a ponzi scheme are behind its growth.