PEPE founder blames unethical former members for the unexpected $16 million withdrawal — News 28 August 2023

Good day, Torekko readers!

Here’s a brief rundown of the latest updates from the world of Web3 on Monday 28th of August.

Bitcoin price: $25 942 (-0.34%)

24 hour trading volume: $7 930 138 356 USD

CFGI Indicator: Fear (39/100)

CRYPTO

1. PEPE’s founder blames ex-members for $16M surprise withdrawal

On August 24th, a large number of Pepe tokens (called PEPE) were taken from the project’s digital wallet, and they were worth about $15.7 million back then. This happened unexpectedly and raised suspicions that something unfair was going on. The person who created Pepe blamed three former team members for doing this. He said they were the ones who moved the tokens and sold them on different online platforms. This caused the value of Pepe tokens to drop by about 15% because people got worried.

The founder of Pepe explained that there were issues within the team from the beginning, with some members causing problems due to their selfishness and disagreements. He said most of the original team distanced themselves just after a week of starting the project. These members made it hard to use the tokens as intended, and they even ignored communication.

The three ex-team members came back without permission, took a large portion of the tokens, and sent them to be sold. After that, they tried to erase their connection to Pepe by leaving the wallet and deleting their social media accounts.

The founder assured investors that the remaining tokens were safe and apologized for the confusion caused by these actions. He said the tokens that were taken were not meant to be sold, and he planned to do positive things with them. He also mentioned that he’s working with others in the community to make Pepe better and that the tokens left would be moved to a different wallet for safekeeping. He plans to use some of them for good causes and get rid of the rest.

In summary, there was a situation where a large amount of Pepe tokens were taken without permission, causing their value to drop. The founder blamed former team members and explained his plan to make things better and use the remaining tokens for positive purposes.

EXCHANGE

2. FTX Faces Cybersecurity Concerns Over Client Data

FTX, the cryptocurrency exchange, has announced that its bankruptcy claims agent, Kroll, suffered a cybersecurity attack compromising non-sensitive customer data of some claimants. This incident comes amid bankruptcy proceedings and the upcoming trial for FTX’s Sam Bankman-Fried. Since July, former FTX users have been able to use Kroll’s platform to claim their blocked funds, with a total of $10 billion reportedly owed. Kroll confirmed that the incident was quickly contained and eradicated, and continues to monitor the situation. Users have been warned to remain vigilant against scams, and the situation serves as a reminder of the importance of using “self-hosted” wallets to ensure secure access to funds. FTX accounts and passwords were not affected by this attack.

WEB3

3. Western Union Explores Ripple Partnership for Blockchain Integration

Western Union, a global leader in money transfers, has entered the cryptocurrency space by exploring the use of Ripple’s blockchain technology and its native token, XRP. CEO Hikmet Ersek announced this move during a conference call with analysts. Western Union aims to optimize capital and transaction settlements using Ripple’s technology and is also testing the XRP token. Ripple has confirmed its partnership with Western Union and highlighted the trial launch of xRapid, a solution that incorporates XRP into payment processes. This strategic move aligns with a trend of financial institutions considering cryptocurrency integration. The potential success of these efforts could position Ripple as a strong contender in the growing cryptocurrency industry, with CEO Brad Garlinghouse highlighting the speed advantages of XRP transactions compared to Bitcoin. Additionally, research from South Korea’s Bitsum crypto exchange reveals that XRP is preferred by over 20% of investors in their twenties.

BITCOIN

4. Hashdex enters the race for Bitcoin Spot ETFs with a slightly different proposal

Hashdex, a company that manages funds, has asked for permission to create a special type of investment called a Bitcoin spot ETF. This is similar to what another big company, BlackRock, is trying to do. But the interesting thing is that Hashdex’s plan is a bit different. Unlike BlackRock, Hashdex won’t use platforms like Coinbase that are specific to cryptocurrencies. They want to use a different method to buy and sell Bitcoin. Instead of using places that aren’t closely watched by regulators, they will use a well-known exchange called the Chicago Mercantile Exchange. This could be important because the government agency that watches over these things, the SEC, has been taking actions about how cryptocurrencies are used.

If they get permission to do this, the investment they’re creating will be available for people to buy on the New York Stock Exchange Arca, and it will be called Hashdex Bitcoin ETF. This is not just a new thing — it’s actually a change to their existing Hashdex Bitcoin Futures ETF, which has been available since September 15, 2022.

Before we end

Here’s a term that will boost your Web3 vocabulary

A blockchain is a digital ledger of transactions that is distributed across a network of computers. It uses cryptography to secure and verify transactions, and once recorded, the data on the blockchain cannot be altered. This makes it a highly secure and transparent method of recording transactions, which can be used for a wide range of applications beyond just financial transactions. Some of the most well-known blockchains include Bitcoin and Ethereum, but there are many others in existence with unique features and benefits.

📢 Let us know your thoughts

That’s it for the daily Torekko News. Stay tuned for Tuesday’s edition, where we’ll keep you updated on the latest news and trends from the world of cryptocurrencies and digital technologies.