Contents

Introduction

Meme coins appear to be making a big comeback, and one of the hottest ones right now is Pepecoin (PEPE), a token inspired by the infamous Pepe the Frog meme. There have been other Pepe-themed meme coins before now, but this has been the leader of the pack.

In just a month after its launch, PEPE reached a $1 billion market cap, making it the third-largest meme coin by market capitalization and the fastest-growing memecoin ever. The token has also remarkably surpassed utility tokens such as ADA, ARB, BNB, and SOL in terms of trading volumes over the past weeks.

Image showing PEPE's cross to $1 billion in trading volume in May 2023 — Source: coinmarketcap

This article comprehensively explores Pepecoin and its Pepe-themed origins, analyzes the factors contributing to its recent success, and offers insights into its future prospects.

Origins and the Meteoric Rise of Pepecoin

Pepecoin (PEPE) is an Ethereum-based cryptocurrency inspired by the famous Pepe the Frog meme. Pepe started as a comic character in 2005 and has since become very popular on the internet. Pepecoin uses the Pepe meme as its logo, similar to how Dogecoin uses the Doge meme. However, it’s important to note that Pepecoin is not directly affiliated with the creator of the original Pepe the Frog character.

An Image of Pepe the Frog, the comic character from Matt Furie's Boy's Club — Source: law.com

Like other meme-based cryptocurrencies such as Shiba Inu and Dogecoin, Pepecoin was created for fun and doesn’t have any practical use. It was launched on April 15th, 2023, without much attention at first. But soon after, early investors started making significant profits as the price surged. They shared their success stories on social media, which attracted more people who wanted to join the action.

Within just four days of its launch, the value of Pepecoin skyrocketed. The wildest “strike-it-rich” story from the token’s annals, perhaps, is that of an early investor who raked in a mind-boggling $1 million profit from a $250 investment in just a few days; that’s an incredible 400,000% return on investment.

This event caught the attention of the crypto community, especially those interested in meme-based cryptocurrencies. More people jumped on board, hoping to make quick profits and become “overnight millionaires.”

While the wallet that earned $1 million in PEPE profits played a role in generating further interest, there were other factors that contributed to the popularity of Pepecoin. Let’s take a look at some of those factors.

1. Social Media Hype

Pepecoin’s popularity and increased value primarily stemmed from individuals seeking quick financial gains and the viral impact it generated on social media. Numerous Twitter accounts flaunted their Pepecoin profits, enticing others to participate with hopes of similar returns.

2. Meme Culture

Pepe the Frog, a widely recognized internet meme, significantly contributed to the success of Pepecoin. It appealed to both cryptocurrency enthusiasts and individuals unfamiliar with digital currencies, resulting in a substantial influx of purchases within a short period.

3. Vibrant Community

PEPE distinguished itself from other memecoins such as Dogecoin and Shiba Inu by virtue of its community-driven growth. The success stories shared by current community members effectively attracted new investors to engage with PEPE, without heavily relying on prominent influencers. Consequently, new investments in PEPE occurred more organically.

How to Buy PEPE

Pepecoin boasts a maximum supply of 420 trillion PEPE coins, with 93.1% already in circulation. The remaining 6.9% of coins are securely held in a multisig wallet under the domain name “pepecexwallet.eth,” which currently holds over $51 million worth of PEPE coins to support the project’s development. Currently, there are 110,276 unique wallets actively holding PEPE.

Where to buy PEPE

You can buy PEPE on a decentralized exchange like Uniswap. You will need some ETH to buy the token and pay for gas.

Alternatively, you can buy PEPE on popular exchanges like Binance, OKX, and Kucoin.

PEPE Airdrop

At the time of writing, the official Pepecoin team does not offer any direct airdrops. However, it’s possible that some generous PEPE holders may decide to give away some of their tokens to the crypto community through airdrops. If you come across such “airdrops,” exercise caution and use your judgement before participating.

Pepecoin vs. Other Memecoins

The team behind Pepecoin takes pride in positioning it as “the most memeable memecoin in existence.” Their website boldly states, “The dogs have had their day, it’s time for Pepe to take reign,” which is a clear reference to the popularity of dog-themed memecoins like Dogecoin that have dominated the meme market for a long time. Pepecoin aims to establish itself as a prominent player in the memecoin world.

Despite its relatively short run, Pepecoin has achieved significant milestones. When compared to well-established memecoins like Dogecoin, Shiba Inu, and Floki, it’s worth noting that Pepecoin reached a $1 billion market cap faster than both Shiba Inu and Dogecoin.

Within a few weeks of its launch, Pepecoin’s valuation reached $1.8 billion, which accounted for approximately 10% of Dogecoin’s market cap.

The table below provides a comparison between Pepecoin and more established memecoins like Dogecoin, Shiba Inu, and Floki:

While Pepecoin’s initial success is impressive, its ability to sustain its position in the long run remains untested. The sustainability of its hype and the strength of its community will be crucial factors in determining whether Pepecoin can maintain its standing alongside memecoins like Shiba Inu and Dogecoin.

Is PEPE a Good Investment?

Pepecoin has its fair share of concerns and criticisms, and potential investors must consider these issues before investing. Some of these include:

1. Lack of Utility

Unlike other cryptocurrencies that offer practical applications or financial returns, Pepecoin’s official website explicitly states that it is purely meant for entertainment purposes. It lacks intrinsic value and doesn’t have a formal team or roadmap, which raises doubts about its long-term viability.

Many PEPE holders are primarily interested in profiting from the token and may sell off their holdings once significant gains are made. This motive creates a selling pressure that mostly leads to a decline in the token’s value, potentially rendering it worthless.

2. Whale Concentration

A small number of accounts hold a substantial portion of the circulating supply of PEPE. These holdings are worth more than $100 million of PEPE’s entire market capitalization.

If these whales decide to sell off their coins, it would result in a sharp drop in price and leave other holders vulnerable.

Image showing whales holdings of the circulating supply of PEPE coin — Source: Coinmarketcap.

3. Possible Short Lifespan

Pepecoin could lose popularity quickly, just like other memecoins that came before it. This has happened before with different Pepe-themed memecoins. If Pepecoin follows this pattern, investors could lose money as there may not be any reason for the coin to grow. Pepecoin could end up becoming just another memecoin that fades into obscurity.

4. Lack Of Transparency

The Pepecoin team is mostly anonymous. However, unlike other projects with real-world use cases, managing a memecoin project may require more transparency. While the project’s tokenomics do not explicitly mention large token distributions to the founding team, the lack of transparency raises questions.

The largest PEPE wallets, which the founding team members could potentially own, have been allegedly linked to insider trading. If these large tokens are indeed linked to the team, it could lead to problems for the entire community, as they could easily dump the tokens and cause a market crash.

PEPE’s Future Outlook

The future of a typical memecoin like Pepecoin is heavily influenced by social hype and how the community responds. It’s still too early to determine if PEPE will achieve the same level of success as other popular memecoins like Dogecoin and Shiba Inu. While it has generated initial excitement and gained support from the community, PEPE has a long way to go before it can establish a strong and lasting presence.

Ongoing regulatory concerns and other external factors affecting the broader cryptocurrency market could also impact PEPE. However, other intrinsic factors could influence the token’s value. For example, the actions of large wallet holders, known as whales, could have a significant impact.

Given the nature of memecoins, smaller holders are likely to follow suit if they observe larger holders dumping their holdings, leading to a potential market collapse.

In Conclusion,

PEPE is quite an interesting memecoin; however, it’s important to acknowledge that investing in it also comes with considerable risks. Those who got in early on the action may have enjoyed fast profits, but latecomers might face significant losses.
Given the unpredictable nature of the crypto market, the future of PEPE remains uncertain. The developers could assign the token a practical utility that can make it more sustainable in the long run. Conversely, it could just as easily fade away into obscurity as quickly as it gained popularity.
Ultimately, investing in PEPE requires careful consideration of the associated risks and an understanding that it’s a speculative venture with no guarantees.

Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence.

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