Since getting listed on Binance on May 5, 2023, Pepecoin (PEPE) saw its market cap plunge by more than $1.2 billion, or 70%. The latest decline comes from the slump in the wider crypto market triggered by the Securities and Exchange Commission’s (SEC) lawsuit against Binance and its CEO, Mr. Changpeng Zhao (CZ).
PEPE Plummets 14% on SEC-triggered Crypto Market Drop
PEPE, one of the hottest meme coins in the crypto space, hit $1.65 billion in market cap on May 5 – the day it was listed in Binance’s innovation zone – after witnessing one of the most astounding price increases among crypto tokens. However, since then, PEPE has experienced a steep decline, exacerbated amid the latest legal dispute between Binance and the SEC.
More specifically, PEPE’s market cap currently stands just below $400 million, meaning that the meme coin lost more than $1.25 billion in market valuation over the past month. In percentage terms, this represents a drop of nearly 70%.
Over the past 24 hours, PEPE tumbled more than 14%, making it one of the top losers the day after the SEC filed a lawsuit against Binance and its CEO Changpeng “CZ” Zhao, alleging the violation of securities law.
However, PEPE was on a sharp downward trajectory even before the regulator’s legal action. While its decline can be attributed to a mix of factors, it is important to remember that PEPE is a meme-inspired cryptocurrency. Meme coins are inherently significantly riskier than other crypto assets because they are based on internet cultural references, capitalizing on social media hype.
SEC Lawsuit Results in $700M+ Binance Outflows
The SEC’s lawsuit against Binance and CZ caused havoc in the broader crypto market, with the world’s biggest crypto exchange facing many charges. Those include offering unregistered securities, comingling of investors’ funds, and an unsuccessful attempt to prevent US-based customers from trading on Binance’s international marketplace.
According to data from blockchain analytics platform Nansen, the lawsuit led to $719 million in withdrawals over the past 24 hours. Meanwhile, net outflows surged to $230 million after the securities watchdog announced its lawsuit.
The SEC’s litigation marks the latest regulatory issue for Binance, which has been scrutinized for several months. Earlier this year, the leading crypto exchange was charged by Commodity Futures Trading Commission (CFTC) for “willful evasion of federal law and operating an illegal digital asset derivatives exchange.”
This article originally appeared on The Tokenist
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