Pepe has recently emerged as one of the most popular meme coins, pushing its price to new ATH in 2024. But what exactly is Pepe? What sets this meme coin apart from others? Can Pepe maintain its momentum and compete with established meme coins like Dogecoin? Explore these questions and discover the answers in the following article.
Article Summary
- 🐸 Pepe is a meme coin built on the Ethereum blockchain. It is inspired by Matt Furie’s Pepe the Frog character.
- 🏆 Pepe the Frog’s popularity as a meme has helped Pepe to become the third largest market cap in the memecoin sector.
- 🪙 Like any memecoin, PEPE has no fundamentals and no utility at all.
- 🔥 Pepe’s attachment to ETH makes its price movement follow the ETH price actions. After the announcement of the spot ETH ETF, the PEPE price managed to reach the ATH level at $0.000016.
What is PEPE?
Pepe is a meme coin built on the Ethereum blockchain, inspired by the iconic Pepe the Frog character. It aims to harness memes’ humor to create a unique digital asset that appeals to the crypto community.
Launched in April 2023 with the goal of dethroning Dogecoin (DOGE) as the top meme coin by market cap, Pepe quickly garnered attention within the crypto community. One notable milestone was Pepe’s surpassing a $1 billion market cap within three weeks of its launch, which took DOGE four years to accomplish.
Today, Pepe boasts a market capitalization of $4.88 billion, positioning it as the third-largest meme coin. It trails only DOGE and SHIB, which hold market capitalizations of $18.04 billion and $10.95 billion, respectively.
The Connection to Pepe the Frog
Pepe the Frog, a character from Matt Furie’s comic book “Boy’s Club,” first appeared in 2005. This expressive frog with large eyes and a wide red mouth quickly became a popular meme. It gained mainstream recognition and solidified its place in meme pop culture.
Capitalizing on Pepe’s internet fame, developers launched a tribute meme coin simply named Pepe. Its popularity on social media like Telegram and Twitter fueled its growth within the crypto community, creating a distinct Pepe memecoin culture.
Pepe’s success inspired a wave of Pepe-themed memecoins like BOME, APU, PEPECOIN, and various other PEPE variations. However, none captured the same level of attention. Some memecoin projects have been scams or lost their value entirely.
As meme coins are often associated with rug pulls and other scams, it is crucial to identify and avoid such projects. The following article provides effective strategies for selecting trustworthy meme coins.
PEPE’s Unique Features
To attract the crypto community’s interest, PEPE has a no-tax policy, a lucrative retribution system, and a deflationary mechanism to maintain its scarcity. These unique features not only differentiate PEPE from other memecoins but also contribute to its long-term stability and success.
- 🔥 Deflationary mechanism. A mechanism to burn a small portion of PEPE tokens from each transaction. This ensures the supply of PEPE will be reduced in the long run and is expected to lift its value.
- ♻️ Redistribution system. In addition to being burned, a small portion of PEPE tokens from each transaction will be distributed to PEPE token holders. This reward mechanism incentivizes PEPE token holders to hold their tokens for the long term.
- 🤑 No Tax Policy. Pepe does not impose any additional fees when users trade Pepe. This is different from other tokens that charge extra fees when trading.
PEPE Tokenomics
From a tokenomics perspective, PEPE has a total supply of 420.69 trillion tokens. Similar to other meme coins, PEPE has no intrinsic or fundamental value. It is entirely useless and created solely for entertainment purposes. The only factor that can drive up the price of PEPE is if someone else buys it.
PEPE does not have an official developer team or a clear roadmap for development. According to its official website, its roadmap consists of only three phases: Meme, Vibe and HODL, followed by Meme Takeover. Considering this situation, holding PEPE carries a high risk, especially in the long term.
PEPE’s Journey
Before reaching its current point, PEPE’s journey as a meme coin has experienced ups and downs. In August 2023, for example, the Pepe community was shocked when 16 trillion PEPE tokens (equivalent to $15 million) were transferred from the protocol’s multi-signature wallet to various CEXs. Immediately, the value of PEPE dropped drastically as many people became skeptical about PEPE’s future.
Then, the person in control of the X Pepe account confirmed that some former developer team had stolen and sold the tokens. In October, the Pepe account on X announced that it had appointed a new team of advisors for Pepe. The announcement was accompanied by burning 6.9 trillion PEPE tokens to reduce the supply.
The reduced supply of PEPE and the hope for Pepe’s future lifted the price of its token again. However, in September 2023, the official Pepe Telegram account was hacked. As a result, since then, all official announcements and communications from Pepe have been made through the X account.
Surprisingly, this has made Pepe’s image associated with X and has given it some advantages. One example is when Elon Musk posted a meme that included the Pepe the Frog character in March 2024. Immediately, there was an assumption that the post was a form of Elon’s support for PEPE.
The tweet from Elon occurred during a period of PEPE’s price revival. After being relatively stagnant, entering late February, the price of PEPE began to experience a very significant increase. It peaked on May 28, 2024, when PEPE hit $0.000016, its all-time high.
Do you want to know how to safely invest and trade meme coins with high potential? Read more here.
PEPE’s Future
Since its launch in April 2023, Pepe has remained unchanged. It is still a meme coin with no utility or fundamentals and is purely speculative. It is difficult to see this change in the future. However, the lack of fundamentals and utility is considered to make meme coins have no long-term prospects.
Considering the many meme coins that lost value, this is a reasonable assumption. So far, DOGE, as the first memecoin, has at least managed to break this assumption by surviving bear markets. To some extent, the same is true for Pepe, as it has survived various negative catalysts.
Despite these opposing views, meme coins have proven to play an essential role in the crypto economy. Galaxy research states that the total market capitalization of meme coins has reached $60 billion. The lack of fundamentals and utility, combined with the small denomination, makes meme coins an attractive option for some retail investors.
In addition, the character of meme coins that have an abundant supply from the start can be one of the positive values. Pepe will not do token unlocking, thus eliminating the potential for increased sell pressure. Moreover, as the third largest meme coin by market capitalization, Pepe is protected from scams and hacking risks that new-generation meme coins face.
Pepe, the largest meme coin on the ETH network, makes it the primary choice for many traders as its price follows the movement of ETH. For example, the issue of the approval of the Ethereum spot ETF. This issue has triggered a price rally for ETH and tokens in its ecosystem, including Pepe. This issue was one of the drivers that led Pepe to record its ATH.
With strong community support and a large market capitalization, Pepe has successfully become one of the “blue chip” meme coin tokens. As the alt season has begun, it will be interesting to see how Pepe performs in the future. However, the risk of Pepe losing its value will still loom due to the inherent nature of meme coins, which lack fundamentals and utility.
DEXs are the best place to find and buy various newly launched meme coins. Here is a guide on how to buy meme coins on DEXs with Pintu Web3 Wallet.
Conclusion
Pepe, the meme coin inspired by Pepe the Frog, has emerged as the third-largest meme coin by market cap. Its popularity is driven by a strong community, deflationary and redistribution mechanisms, no tax policy, and the positive momentum of meme coins. Pepe’s journey has been marked by ups and downs, including token theft and account hacks. However, on May 28, 2024, it reached an ATH of $0.000016.
Despite lacking fundamentals and utility, meme coins have become popular with retail investors. It’s due to their accessibility and affordability. Moreover, their small denominations, strong community support, and the absence of token unlock further enhance this appeal.
Pepe’s position as the largest memecoin on Ethereum makes it particularly attractive. As an Ethereum-based asset, it benefits from positive price movements in ETH. The positive sentiment surrounding the Ethereum spot ETF is a testament to this correlation. However, Pepe remains an inherently big risk due to its speculative nature and the lack of underlying fundamentals and utility.
How to Buy PEPE Token on Pintu
You can start investing in PEPE by buying it on Pintu app. Here is how to buy PEPE on Pintu apps:
- Create a Pintu account and follow the process of verifying your identity to start trading.
- On the homepage, click the deposit button and top up the Pintu balance using your preferred payment method.
- Go to the market page and look for PEPE.
- Click buy and fill in the amount you want.
- Now you have PEPE!
In addition to PEPE, you can safely and conveniently purchase a wide range of cryptocurrencies such as BTC, ETH, SOL, and others safely and easily on Pintu. Pintu diligently evaluates all its crypto assets, highlighting the significance of being cautious.
Pintu is also compatible with popular wallets such as Metamask to facilitate your transactions. Download Pintu app on Play Store and App Store! Your security is guaranteed because Pintu is regulated and supervised by Bappebti and Kominfo.
Aside from buying and trading crypto assets, you can expand your knowledge about cryptocurrencies through various Pintu Academy articles. Updated weekly, all Pintu Academy articles are made for knowledge and educational purposes, not as financial advice.
References
- Michael William, What is Pepecoin (PEPE)?, Watcher.Guru, accessed on 19 June 2024.
- David C, The Rise of PEPE, Bankless, accessed on 19 June 2024.
- Ally Zach, “Navigating Memecoin Mania”, Messari, accessed on 19 June 2024.
- Zack Pokorny, The Evolution of Memes and Their Place on Blockchains, Galaxy, accessed on 19 June 2024. ****