$MPEPE Investors Cry Foul as Project Allegedly Fails to Deliver Promised Tokens

Investors are left empty-handed as blockchain data reveals suspicious activity and no token distribution from the Mpeppe project.

Mpeppe, a hybrid project combining gambling, memecoins, and decentralized finance (DeFi), is under scrutiny after investors accused it of conducting a fake presale. The project, which promised to use the funds to build a casino, player card NFTs, and a DeFi protocol, has yet to distribute any tokens to those who invested in its initial offering.

According to blockchain data, the entire supply of Mpeppe tokens remains in the project’s deployer account, with no evidence of distribution to investors. Despite these red flags, Mpeppe continues to advertise itself through its website, which prominently features a "Buy $MPEPE" button encouraging new users to participate.

One investor, who chose to remain anonymous and goes by the name "Chosen," reported sending $1,996 worth of the USDT stablecoin to the project's deposit address, only to receive nothing in return. "Chosen" discovered the project through a promotion on a trusted crypto news aggregator, which led them to believe that Mpeppe was a legitimate investment opportunity.

Efforts to contact the Mpeppe team for an explanation have been futile. When a Blockonome reporter attempted to reach out through the project's official Telegram channel, they were met with an immediate error message stating, "sorry, this group is not accessible," raising suspicions of potential censorship or technical manipulation.

The Mpeppe website's purchasing process adds further cause for concern. Investors are required to provide personal information, such as their email address and phone number, before being prompted to send funds manually to an external account. Unlike typical token sales, which involve a smart contract that automatically distributes tokens, Mpeppe's method relies entirely on the project's team to manually send the tokens, a process fraught with risks and potential for fraud.

Blockchain analysis of the transaction data reveals that funds sent by investors like "Chosen" were transferred to another address, which has since conducted over 33,000 transactions and frequently moved funds to major exchanges like Coinbase, ChangeNOW, and BitMEX. The address holds over $450,000 worth of tokens, but none of these funds have been used to fulfill the promises made to Mpeppe investors.

The lack of transparency and token distribution, coupled with the pseudonymous nature of the Mpeppe team, has led to growing concerns that the project may be preparing for an exit scam. While the Mpeppe white paper outlines ambitious plans for a casino, NFTs, and a DeFi staking protocol, the project's actions—or lack thereof—suggest otherwise.

Mpeppe's presale practices deviate significantly from industry norms, where smart contracts typically handle token sales, ensuring that investors receive what they paid for. Instead, Mpeppe's reliance on manual transactions controlled by an unknown individual or team leaves investors vulnerable, with no automatic guarantee of receiving their tokens.

While there is a slim chance that the Mpeppe team may eventually distribute the tokens and fulfill their promises, the current situation paints a grim picture for those who invested in the project. Potential investors should exercise extreme caution and be aware of the significant risks involved in interacting with Mpeppe.

photo source / Blockonome - Website of Mpeppe