What is PEPE? Could This Be the Next Major Memecoin?

The PEPE memecoin appears to be a manifestation of the cyclical trends observed in the cryptocurrency market, where new memecoins frequently emerge, capturing significant attention and excitement.

In just a few months since its inception, the PEPE memecoin has successfully entered the top 100 projects, achieving a market capitalization exceeding an impressive $400 million.

This guide will provide an in-depth examination of the PEPE memecoin, its creators, and the motivations behind its launch. We will also explore accounts of individuals who became instant millionaires and whether they can truly enjoy their newfound wealth. Let’s get started.

What is a Memecoin?

Memes have become an integral part of the Internet culture. They have been around since the early days of Web1 and are likely to persist well into the future.

It is not surprising that they have intersected with the cryptocurrency sector. While most coins typically emphasize some form of utility, memecoins aim to achieve virality through the rapid dissemination of memes.

Notable examples include Dogecoin (DOGE) – the pioneering memecoin that garnered widespread attention and has maintained its status among the leading cryptocurrencies for several years. Other examples include Shiba Inu (SHIB), Floki Inu (FLOKI), and others.

Lastly, we have the PEPE memecoin – a cryptocurrency that has surged in popularity in a manner that perhaps no other memecoin has achieved before.

Brief History of the PEPE Memecoin

The PEPE memecoin was introduced around mid-April 2023, with its first recorded entry on Etherscan dated April 18th.

Within less than three weeks, the cryptocurrency reached a market cap exceeding $420 million, making its way into the list of the top 100 coins based on total market capitalization.

As of this writing, PEPE is available on major exchanges such as Huobi, MEXC, OKX, and others. Additionally, it can be found on various decentralized exchanges like Uniswap.

What is PEPE Memecoin?

Definition and Background

According to its official website, the PEPE memecoin aims to be “the most memeable memecoin in existence.” The site includes multiple references to other well-known tokens such as Shiba Inu (SHIB), Floki Inu (FLOKI), Dogecoin (DOGE), and others.

By its very nature, PEPE has no intrinsic value, a fact clearly stated on the website:

“PEPE is a meme coin with no intrinsic value or expectation of financial return. There is no formal team or roadmap. The coin is completely useless and for entertainment purposes only.”

This lack of intrinsic value is not a novel concept in the cryptocurrency space. Numerous memecoins have emerged in the past, making no claims and explicitly warning users of their lack of value.

Connection to Pepe the Frog Meme

While leveraging the well-known meme for its viral potential, the team behind PEPE does not assert any affiliation with Pepe the Frog.

“PEPE coin has no association with Matt Furie or his creation Pepe the Frog.”

Instead, the token’s objective is to “simply pay homage to a meme we all love and recognize.”

For context, Pepe the Frog is a cartoon character created by cartoonist Matt Furie, who first appeared in Furie’s comic Boy’s Club in 2005.

Purpose and Vision of the PEPE Memecoin

While humorously stating that there are no plans, the team has outlined some expectations through three distinct roadmap phases, which can be viewed below:

Source: Official Website

Tokenomics

The total supply of PEPE tokens is 420,690,000,000,000. This figure pays tribute to the popular meme numbers 4:20 and 69.

93.1% of the supply has been allocated to the liquidity pool, with the LP tokens burned and the contract renounced.

The remaining 6.9% of the total supply is held in a multi-sig wallet for future listings on centralized exchanges, liquidity pools, and bridges, according to the official website. This wallet can also be tracked using the ENS name “pepecexwallet.eth.”

PEPE Memecoin Ecosystem

The ecosystem surrounding the PEPE memecoin is expanding daily. As of May 1st, approximately two weeks post-launch, the token had already amassed around 65K holders, as reported by Etherscan.

Source: Etherscan

Its official Telegram group has over 25,000 members, generating tens, if not hundreds of thousands of messages daily.

Its official Twitter account, created in April, has already attracted more than 133,000 followers.

Source: Twitter

Risks and Challenges

Like many memecoins that gain rapid popularity, PEPE also presents certain risks and challenges.

Market Volatility

Since its launch, PEPE has exhibited significant volatility, with substantial price fluctuations.

For instance, on May 1st, it more than doubled in value, increasing over 100% in a single day. While this may seem appealing, it is crucial to recognize the associated risks.

There is a common saying in the crypto community:

“The price takes the stairs up and the elevator down.”

This implies that although PEPE may appear to be on an upward trajectory, it could just as swiftly lose all its current value. It is important to remember that the creators have stated it has no intrinsic value, meaning it is worth only what someone is willing to pay. While this notion applies to many assets, the risks are particularly heightened with newly launched memecoins that emerge unexpectedly.

Additionally, there are challenges on many centralized exchanges due to insufficient liquidity for cashing out gains. This means that even if someone executes a highly profitable trade, they may lack the liquidity to fulfill their position.

This was the case for an individual who turned a $27 investment in PEPE into an impressive $1 million but faced difficulties in fully cashing out due to liquidity issues.

However, if PEPE endures and gains listings on more centralized exchanges with deeper liquidity, this concern may diminish.

Security Risks

As a memecoin gains traction, it often attracts malicious actors seeking to exploit it and defraud individuals of their funds.

For instance, a message from the official PEPE Telegram group states:

A few community members have reached out to us regarding dusting/token scams that are occurring in our deployer wallet as well as the CEX wallet. Anyone can spoof a transaction and send these tokens to our wallets. I would advise that every single coin doing this is a SCAM. Numerous scam developers are dusting our wallets to create the illusion that we are airdropping or transacting with their tokens to deceive individuals into interacting with them. Do not purchase any of these tokens or engage with the contracts, as they pose a risk of draining your wallet.

In general, when engaging with the DeFi ecosystem, it is crucial to adhere to basic crypto security practices to avoid scams.

Further information on this topic can be found in our comprehensive guide here.

Conclusion

In summary, the PEPE memecoin has certainly made a significant impact in the cryptocurrency market, achieving a total addressable capitalization exceeding $400 million within just two weeks of its launch.

Many are drawing parallels between PEPE and other memecoins like SHIB, DOGE, FLOKI, and others, but only time will reveal whether this meme-inspired token will endure.

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