Launched in April 2023 on the Ethereum blockchain, PEPE represents the fusion of internet meme culture and cryptocurrency. This memecoin is a nostalgic nod to a web phenomenon: Pepe the Frog, a fictional character that is a cartoon frog. How did the PEPE crypto conquer the world of memecoins? And why is this frog valued at several billion dollars ?

What is the crypto PEPE ?

Created in April 2023 on Ethereum, the PEPE cryptocurrency is deeply rooted in the trend of memecoins, digital assets inspired by internet meme culture.

Pepe the Frog, created by illustrator Matt Furie in 2005, lies at the core of this project.

The frog meme emerged on platforms like Myspace and 4chan in 2008, evolving into “Sad Frog” or “Smug Frog.”

Regarding PEPE, the creators remain anonymous, a common feature in the memecoin world. This ERC-20 token, with no development plan or roadmap, positions itself as a purely community-driven project with no claims of becoming a serious cryptocurrency.

From its launch, PEPE generated immediate enthusiasm, quickly reaching a market capitalization of over $420 million and ranking among the top 100 cryptocurrencies in just a few weeks.

The PEPE cryptocurrency saw rapid growth in 2023, largely due to the influence of social media platforms like Twitter and Telegram, and the popularity of the Pepe the Frog meme. Surprisingly, PEPE’s market capitalization surpassed one billion dollars just three weeks after its launch, a milestone that took almost four years for Dogecoin (DOGE), the most well-known memecoin, to achieve.

Despite this impressive valuation, the project has also faced some dark moments. For example, in August 2023, the PEPE community was alarmed by the unexplained transfer of 16 trillion tokens (worth about $15 million) from the project’s multi-signature wallet to several centralized exchanges.

The incident led to a sharp decline in PEPE’s value, sparking worry among its holders and the community.

To address the confusion, a message on the project’s official X account attempted to clarify the situation. The message stated that certain developers who had left the project were responsible for these fund movements, under the guise of a purported wallet update.

The seemingly straightforward transaction actually involved embezzlement, as the developers sold the misappropriated PEPE tokens. Following this incident, PEPE’s price continued to decline for several months.

Nevertheless, a revival began in October 2023 with a message on PEPE’s official X account. This post revealed the arrival of a new team determined to revitalize the cryptocurrency. The announcement also included news of burning 6.9 trillion PEPE tokens, valued at approximately $6 million.

What are the roles and tokenomics of the PEPE token ?

Like most memecoins, the PEPE token doesn’t have much practical use beyond uniting a community around a shared project.

However, PEPE stands out in the memecoin world thanks to unique features that contribute to its long-term success.

Indeed, the PEPE token differentiates itself from other memecoins through :

• A deflationary mechanism: with each PEPE transaction, a small percentage of tokens is burned, gradually reducing the total supply of PEPE in circulation;
• A redistribution system: a portion of each transaction is redistributed to PEPE holders. This encourages long-term holding to accumulate PEPE passively;
• A no-fee policy: this allows users to trade and conduct transactions with PEPE without additional fees, promoting smoother exchanges.

PEPE had a total supply of 420,690 trillion tokens, with 93.1% in liquidity and 6.9% reserved.

If you’re considering buying PEPE, keep in mind that it’s a memecoin, and this cryptocurrency is not like the others. Its creators are unknown, there’s no roadmap, and nothing is developed around PEPE except for its community. Therefore, only the community aspect plays a role in the token’s popularity.

Memecoins are highly volatile and uncertain, as their value isn’t based on tangible fundamentals, a roadmap, or concrete projects.

Investing in memecoins like PEPE carries significant risks, despite potential benefits from the cryptocurrency market’s momentum.

Let me know what you think in the comments.

David Crypto