The PEPE memecoin is a continuation of the cyclical trend in the cryptocurrency market, when a completely new memecoin appears from time to time and the hype around it completely dominates.
The PEPE memecoin entered the top 100 projects in less than two weeks after its first appearance, reaching a market value of over $400 million.
In this tutorial, we will dive deeper into the definition, creator, and motivation of the PEPE memecoin. We will also explore the stories of other people who became overnight billionaires to see if they were able to enjoy their wealth. Let’s start right now.
▌What are Memcoins?
Memes have taken root on the Internet. They’ve been around since the beginning of Web1 and are likely to be around for a very long time.
Unsurprisingly, they have also had disagreements with the bitcoin sector. Memecoins, unlike other coins, are focused on going viral due to the explosive nature of memes and their rapid spread.
Dogecoin (DOGE), the first memecoin to attract widespread attention and secure its place among the leading cryptocurrencies for years to come, is one example. Also available are Shiba Inu, Floki Inu and others.
And last but not least, the PEPE memecoin, a cryptocurrency that has experienced an unprecedented surge in popularity.
▌A brief overview of the history of PEPE memecaine
The initial entry point for Etherscan was April 18, 2023, when PEPE memecoin was released around the middle of the month.
Less than three weeks later, the cryptocurrency entered the top 100 coins by total market capitalization with a market value of almost $420 million.
▌What is PEPE Memecoin?
History of the foundation
According to the official PEPE website, the PEPE memecoin is set to become “the most memorable memecoin ever”. The website contains several allusions to other well-known tokens such as Dogecoin (DOGE), Floki Inu (FLOKI), Shiba Inu (SHIB), etc.
At its core, PEPE has no intrinsic value, and the website clearly states this:
“PEPE is a meme coin with no hope of financial gain and no intrinsic value. There is no official team or roadmap. The coin is just for fun and is worth absolutely nothing.
It is important to remember that this is not new in the world of cryptography. In the past, there have been a number of memos that made no promises and explicitly warned users that they had no value.
Connection to the Pepe the Frog meme
The creators of PEPE don’t claim to be related to Pepe the Frog, but they hope that the meme can go global.
There is no connection between the PEPE currency and Matt Fury’s invention of Pepe th Feels_good_man.Instead, the purpose of the token is “simply to pay homage to a meme we all love and recognize.”
To give some context about Pepe the Frog, it should be noted that Matt Fury invented this cartoon character. Pepe made his screen debut in Fury’s 2005 comic strip, Boys’ Club.
Purpose and vision of the PEPE memecoin
Although the team jokes that they don’t have any plans, they have set some expectations in the form of three distinct stages of the roadmap, which are shown below:
PEPE has a total of 420,690,000,000,000,000,000 tokens. The number itself is a parody of the well-known meme numbers 4:20 and 69.
The LP tokens were burned, 93.1% of the offer was transferred to the liquidity pool, and the contract itself was rejected.
The multiwallet now holds the remaining 6.9% of the total supply, which will be used for future listings on liquidity pools, bridges, and centralized exchanges. At least, that’s what the official website says. In addition, you can follow this wallet using its ENS name “perexwallet.eth“.
▌PEPE Memecoin ecosystem
The PEPE memecoin ecosystem is expanding every day. According to Etherescan, as of this writing on May 16, almost two weeks after the token was first introduced, 113 thousand people have become its owners.
More than 105,000 people are members of her official group on Telegram, which receives tens of thousands to hundreds of thousands of messages daily.
Although it was created only in April, it already has more than 277,000 followers on Twitter.
▌Risks and challenges
Like most memo-coins that spread rapidly, this memo-code has various dangers and difficulties.
Since its inception, PEPE has been one of the most volatile cryptocurrencies, with huge price fluctuations.
For example, on May 1, it rose by more than 100% in a day, more than doubling its price. While this may seem particularly attractive, there are a number of dangers associated with it.
As a result, even though it may seem that PEPE is moving “only upward,” it could just as easily lose all of its current value, according to this statement. Its inventors argued that it has zero intrinsic value, and thus, in essence, is only worth what someone is willing to pay for it. While this is true for many things, and that value itself is a social construct, the danger increases with newly created memorabilia that have come out of nowhere.
Many centralized exchanges also have the additional problem of a lack of liquidity, which makes it difficult to pay out winnings. This means that even if a trader is successful, they may not have enough liquidity to cover their position.
This is the story of a man who turned a $27 investment in PEPE into a staggering $1 million, but was unable to fully withdraw the funds due to a number of liquidity issues.
Then again, if PEPE survives and is listed on exchanges that are better monitored and have more liquidity, this concern may become less relevant.
More and more criminals are trying to capitalize on the popularity of memecoins, luring people out of their hard-earned money.
For example, here is a message from the official PEPE Telegram group:
A few community members have reached out to us regarding dusting/token scams that are taking place in our deployer wallet as well as the CEX wallet. Anyone is able to spoof a transaction and send these tokens to our wallets. I would say that every single coin doing this is a SCAM. Lots of scam developers are dusting our wallets to make it look like we are airdropping or doing transactions with their tokens to trick people into interacting with them. Don’t buy any of these tokens or interact with the contracts, as they have the risk of draining your wallet.
In general, it is important to follow certain fundamental rules of cryptographic security when interacting with the DeFi ecosystem to avoid fraud.
In conclusion, there is no denying that the PEPE meme has made waves in the cryptocurrency market, rising to a total addressable valuation of over $400 million in just two weeks after its inception.
Many people compare PEPE to other meme coins such as SHIB, DOGE, FLOKI, and other similar coins, but only time will tell if this meme-inspired token will be a long-term success.