In a significant update, the Pepe Unchained crypto project has announced the migration of its Layer-2 blockchain due to infrastructure issues related to its previous provider, Conduit. In an official Medium post, the anonymous team behind Pepe Unchained informed the community that all $PEPU token holders must bridge their assets back to Ethereum before May 29th to prepare for the upcoming deployment on Arbitrum.
The decision follows revelations about the deprecation of Custom Gas Tokens (CGT) functionality in OP Rollups, a feature critical to Pepe Unchained’s Ethereum layer-2 blockchain architecture. The team stated that Conduit did not inform them that CGT was still considered a beta feature, which they described as critical for their chain’s long-term sustainability.
Nevertheless, the team is framing the move to Arbitrum as an opportunity to build on a more secure and scalable foundation.
Custom Gas Token Deprecation Forces Layer-2 Blockchain Migration for Pepe Unchained
Pepe Unchained's announcement revealed that Custom Gas Tokens, a key part of their layer-2 network, will be deprecated. The team expressed that Conduit’s decision to sunset the infrastructure left them with no viable option but to decommission the existing chain.
In the Medium post, Pepe Unchained emphasized that they had no choice but to move, citing concerns over the sustainability and security of continuing under the existing framework.
The migration plan arrives after a period during which the Pepe Unchained team acknowledged slower communication and limited updates, which the team attributed to internal resource constraints and ongoing efforts to find a new blockchain partner.
$PEPU Coin Holders Must Bridge to Ethereum Ahead of Arbitrum Relaunch
In addition to the migration announcement, Pepe Unchained instructed holders and stakers to bridge their $PEPU tokens back to the Ethereum network. The deadline for the bridging process has been set for May 29, 2025.
The team indicated that a detailed migration walkthrough would be released soon. Meanwhile, crypto investors and $PEPU token holders are encouraged to initiate the process using the official bridge website.
As part of this transition, the project also confirmed a temporary pause on staking rewards. The team stated that it was necessary to ensure stability during the migration phase, despite the difficult decision. Staking rewards will be temporarily suspended, although no permanent changes to the staking system have been announced.
Pepe Unchained Announces Collaboration with Escape Following Migration
Pepe Unchained also announced a new collaboration with the Escape project, which was launched through their Pump Pad initiative. In their statement, the team described Escape as one of the most successful projects on their platform, citing its achievement of a $10 million all-time high.
The Medium announcement explained that the partnership will go beyond traditional marketing efforts, suggesting a closer development collaboration between the two projects. Further information about the scope and structure of this partnership will reportedly be disclosed after the migration is completed.
According to the team, this collaboration reflects ongoing efforts to strengthen the Pepe Unchained ecosystem and offer more opportunities through their revamped PumpPad.
Arbitrum Becomes New Home for the Pepe Unchained Ecosystem
The team confirmed that Arbitrum will be the new home for Pepe Unchained’s layer-2 blockchain infrastructure. They highlighted that the move would provide a more stable environment for future developments, including the ongoing work on the PumpPad, PepuSwap, and a planned cross-chain bridge.
Pepe Unchained described the migration as a necessary response to technical setbacks and a strategic step toward creating a faster, more secure, and fully Ethereum-aligned network.
The Medium post emphasized that the upcoming chain on Arbitrum will benefit from recent scalability advancements, ensuring better operational security for the $PEPU token and related products.
Transparency and Investor Protection Questions Remain
While the migration addresses immediate technical challenges, broader questions about Pepe Unchained’s transparency and governance remain unanswered.
Throughout the presale fundraising and the development of the original crypto chain, the project’s team remained anonymous, and there have been no public announcements regarding any intention to disclose team identities or enhance investor protection mechanisms. We have previously published a detailed investigation providing additional background on the individuals and entities associated with the Pepe Unchained team.
Additionally, the timing of the migration announcement raises questions about whether the decision to take PumpPad offline was solely due to content issues or also influenced by the project’s awareness of the upcoming infrastructure deprecation. In late March 2025, Pepe Unchained shut down its PumpPad launchpad platform, officially citing inappropriate user-generated content and technical issues as the reasons for the shutdown. However, it remains unclear whether internal knowledge of Conduit's plans to sunset the existing layer-2 network may have contributed to the platform's temporary suspension.
No official statement has confirmed a direct link between the PumpPad incident and the broader chain deprecation.
