Pepe Coin, or $PEPE, launched back in April 2023 and has been involved in controversies ever since. Inspired by the internet meme Pepe the Frog, the crypto was built on Ethereum.
Unlike other meme coins, the frog-inspired PEPE could be the SHIB-killer and it has embraced its meme-based identity, even stating that it has no inherent value or use case. Pepe the Frog, the inspiration behind the coin, is one of the oldest memes.
Even the OG meme was occasionally involved in controversies, but Pepe Coin capitalized on the existing community and fan base. Moreover, Pepe Coin adopted tactics, such as a no-tax policy and active marketing, to ride the meme coin craze.
However, the sailing did not go smoothly for PEPE as Matt Furie, the mind behind Pepe the Frog, sued the coin for unauthorized use of copyrighted property. Furie filed a lawsuit in June 2023, arguing that the crypto is infringing on Pepe’s trademark.
Even worse, Furie believed that the crypto is tarnishing the wholesomeness the original meme carries. The creator demanded a cease-and-desist order to halt $PEPE’s operations and the meme’s further use. The lawsuit is still ongoing, and it certainly affected Pepe’s market image.
This is not the only controversy $PEPE was a part of, as the crypto community was quick to accuse it of being a pump-and-dump scheme. Given $PEPE’s lack of underlying utility, a wave of skepticism surrounded the entire project.
Its sudden rise and fall also imitated the standard pattern of every other pump-and-dump scheme. Many enthusiasts also critiqued the coin for copying Shiba Inu and Dogecoin. Users argued that the coin lacked originality and was leveraging the popularity of meme coins without any utility.
However, the security breach of the official Pepe Coin Telegram channel overshadowed these worries. The group was attacked in August 2023, resulting not only in financial loss but personal data exposure as well.
The attacker stole a massive amount of $PEPE worth millions of dollars. The theft directly affected investors, who lost their entire token holdings. It is also suspected that sensitive data was leaked from the group, such as wallet addresses and usernames.
Under the circumstances, the Pepe Coin project lost the faith of users, ruining its market status for a while.
Even then, Pepe is currently trading at 0.0000009786 dollars, a 7.33% drop in the past 24 hours. The coin is ranked 126th based on market cap alone, showing that users are still staying with the project. Even several Pepe Coin crypto predictions expect the coin to have a positive market outlook in the coming months.
Source: https://www.cryptonewsz.com/what-made-pepe-coin-the-most-controversial-crypto-meme-coin/