Introduction
The world of cryptocurrencies is no stranger to meme coins. One that has recently taken the market by storm is Pepecoin. Launched in April 2023 and inspired by the iconic Pepe the Frog internet meme. This Ethereum-based token has seen a meteoric rise, surging over 18,000% till today.
Pepecoin’s meteoric ascent can be attributed to its deflationary mechanisms and redistribution system that incentivizes holding. With no formal team or roadmap, and experts cautioning against its lack of intrinsic value, but… Pepecoin embodies the essence of a true meme coin – a speculative asset fuelled by community hype and viral internet culture.
In todays article I write all about Pepe memecoin and will take a look close to this project.
Please read it, comment it and of course, share it.
The Rise of Pepe Coin
Pepecoin (PEPE) has recently gained significant traction, outperforming Bitcoin in terms of social media buzz and hype. Its community-driven approach and unique branding have attracted a loyal following, helping it gain momentum on platforms like X and Reddit.
Remarkably, Pepecoin achieved a $1 billion market cap much faster than Shiba Inu did. It indicating significant room for growth in its social media presence and search volume compared to other popular meme coins.
Within just two weeks of its launch in April 2023, PEPE coin has entered the top 100 cryptocurrencies by market cap, currently ranking at #29 with a market cap of over $4.38 billion.
This meteoric rise can be attributed to its strong social media presence, listing on major exchanges, and the general hype surrounding meme coins.
The Pepe Meme Origins
Pepe the Frog was originally created in 2005 by cartoonist Matt Furie as a character in his comic series “Boy’s Club”. The character gained widespread popularity as an internet meme in 2008, particularly on websites like 4chan.
Over time, various variations of the Pepe meme emerged, including “Sad Frog”, “Smug Frog”, “Angry Pepe”, “Feels Frog”, and the infamous “You will never…” Frog.
The Rise of Rare Pepes
A unique phenomenon surrounding Pepe was the emergence of “Rare Pepes”, where people began trading and selling unique Pepe images, treating them as collectibles.
This trend further fuelled the meme’s popularity and solidified its place in internet culture.
Pepe’s Controversial Associations
In 2015-2016, Pepe the Frog was co-opted by the alt-right movement and used as a symbol, leading to its inclusion in the Anti-Defamation League’s hate symbol database, despite the creator’s intentions.
Matt Furie, the creator of Pepe, expressed dismay at the character’s association with hate groups and has taken legal action against organizations using it in such contexts.
Interestingly, in 2019, Pepe was also used as a symbol of resistance during the 2019-2020 Hong Kong protests, dissociating it from the alt-right ideology.
Despite its controversial associations, the Pepe the Frog character did not originally have racist or antisemitic connotations. Its widespread popularity and adaptability led to its adoption by various groups, both positive and negative, shaping its complex cultural significance.
Pepe Coin’s Mechanisms
Pepecoin was initially designed with unique mechanisms to drive its growth and adoption. At its core, it featured a deflationary mechanism and a redistribution system.
Deflationary Mechanism
A small percentage of Pepecoin tokens were burned with each transaction, gradually reducing the overall supply. This deflationary mechanism aimed to create scarcity and potentially increase the token’s value over time.
Redistribution System
Initially, a portion of each transaction was redistributed to existing Pepecoin holders. This system incentivized holding the token by rewarding long-term holders with a share of the transaction fees.
However, Pepecoin faced challenges with token transfers from the multi-signature wallet, leading to concerns within the community. In response, the project announced token burns and brought on new advisors to address these issues.
Whole project has deflationary mechanism what mean a percentage of tokens are burned with each transaction. In case of redistribution system, a portion of each transaction are redistributed to existing holders. It brings motivation to actual holders, for sure.
Token Supply
420,690,000,000 tokens, with 93.1% in a liquidity pool and 6.9% in a multi-signature wallet
It’s important to note that Pepecoin has no formal team, roadmap, or intrinsic value. It was created as a tribute to the popular internet meme character ‘Pepe the Frog’, and its growth has been fuelled by community hype and viral internet culture.
PEPE Price in Depth
Since PEPE is a phenomenon on the cryptocurrency market, its price increase is mainly due to the hypo in social media.
This token has no history that would allow assessing the behaviour of traders/investors in previous cycles. Therefore, assessing how the token price will behave in this and subsequent cycles is pure speculation.
Due to this fact, I will leave this section only describing a few facts. However, I would like to add that these facts do not have to be confirmed in subsequent Bitcoin cycles. The token is deflationary and its price has increased by 18,000% in just a few months! This is really impressive, but… investing/trading this token is 100% risky. Allocating capital to this token is speculation. The foundations are still missing, although this may change, there is currently no basis for this. Trading this token is more like a lottery than common sense investing or trading.
Project Challenges and Changes
Despite the initial hype and social media buzz, Pepecoin faced several challenges that led to changes in its mechanisms and project management.
Token Transfer Concerns
In August 2023, a significant amount of 16 trillion $PEPE tokens, worth approximately $15 million, were unexpectedly transferred from the project’s multi-signature wallet to various exchanges. This move raised concerns within the Pepecoin community, as it contradicted the project’s initial claims of being a decentralized and community-driven initiative. The unexpected transfer led to a sharp decline in PEPE’s price, reflecting the community’s loss of trust.
Token Burn and Advisors
To address the concerns and regain community trust, the project announced a token burn in October 2023. A substantial 6.9 trillion $PEPE tokens, worth around $6 million, were burned, effectively reducing the overall token supply.
Additionally, the project brought on new advisors to provide guidance and oversight, aiming to restore transparency and credibility.
Despite these efforts, Pepecoin’s price continued to experience volatility, with CoinGecko reporting a price of $0.00001 as of 22 September 2024, an 2.1% decrease in the past 24 hours. This decline is particularly noteworthy given the recent surge in social media activity surrounding the coin, which may signal a correction after the initial hype.
The Future of Pepe Coin
The future of Pepecoin (PEPE) remains uncertain, with both optimistic projections and cautionary warnings from experts. According to price predictions, PEPE could potentially reach a high of $0.000010 by April 2024 and $0.00000237396 by the end of 2024.
However, these figures should be taken with a grain of salt, as Pepecoin is a highly speculative asset with no intrinsic value.
Conclusion
While these projections paint a promising picture, experts caution that Pepecoin is a highly speculative investment with no intrinsic value. Therefore, investors should be wary of its lack of fundamentals and the potential for a sudden crash.
Pepecoin has been listed on several major cryptocurrency exchanges like Binance, Uniswap, and KuCoin. Those exchanges has contributed to its rapid growth.
