Concerns Arise over Centralization as PEPE Token's Contract Allows for Modification of Transaction Tax and Blacklist Function by Owner
The cryptocurrency market has seen the rise of a new meme coin asset called Pepe (PEPE), named after the infamous meme and cartoon character, Pepe the Frog. Matt Furie, the creator of Pepe the Frog, inspired the token, and it has quickly become the sixth-largest meme coin asset in terms of market capitalization, valued at just over $119 million at the time of writing.
PEPE's market performance has been impressive, with the token's value increasing by more than 400% from its all-time low on April 18, 2023, to reach a high of $165 million just two days later on April 20. The token's circulation includes 420.69 trillion pepe tokens, and there are currently 28,647 PEPE holders.
Additionally, it has come to attention that the Twitter account associated with Pepe has been suspended for the second time within a period of two days.
Despite its fast rise, concerns have been raised about the token's underlying contract, which includes suspicious functions that could lead to centralization. One such feature is the ability to blacklist users, which is intended to prevent a single wallet from gaining too much control over the token's supply and causing market manipulation. However, this feature has raised questions about the token's decentralization, as the contract owner has the power to control it through the onlyOwner modifier.
Both coinmarketcap.com and Gopluslabs have warned about the token's contract modification, as the contract owner may be able to modify the transaction tax and blacklist function. This level of control is seen as a limitation on decentralization, which is a core principle of blockchain technology.
In conclusion, the rise of Pepe (PEPE) in the meme coin economy has been remarkable, but it remains to be seen how its contract's centralization will affect its future growth and sustainability. Investors should be cautious and conduct their due diligence before investing in any cryptocurrency.