Memecoins are cryptocurrencies inspired by viral jokes on the internet including comical or animated memes. Pepe Coin is one such famous meme coin. PEPE was originally designed to use a deflationary mechanism that burns a small percentage of tokens with each transaction. This was planned to create scarcity which in turn will increase the value of the token with time.
To encourage long-term user engagement and investment, the project team members incorporated the redistribution system that allowed a portion of every transaction to be distributed among existing token holders. Since then, there have been some changes to the project and it is not clear whether this redistribution system will be continued.
PEPE Token Details
PEPE is an ERC-20 token that operates on the Ethereum blockchain. The token is inspired by the “PEPE the Frog” meme whose creator is Matt Furie. As per the website PEPE(dot)VIP, the development of the PEPE coin was divided into three different phases.
Phase 1- Meme: This phase is focused on launching the PEPE coin and increase its presence on various sites like CoinGecko and CoinMarketCap to reach more than a thousand holders. And by using the power of memes to gain popularity on Twitter.
Phase 2- Vibe and HODL: In this phase, the aim would shift to reaching 10,000 holders and reaching the availability of the PEPE coin in central exchanges. The main focus is to expand its community. Launching a digital newsletter, and creating a token-based Discord group called Pepe Palace for the holders.
Phase 3- Meme Takeover: The final phase includes the complete meme takeover to reach 100,000 holders. This is done by expanding the PEPE ecosystem by launching Pepe merchandise, developing Pepe Tools, and obtaining listings on Tier-1 exchanges.
It is different from all the other meme coins because it has a redistribution system that supports the long-term stakes. PEPE’s burning mechanism helps to maintain security. It also has no tax policy as per the official website which is a unique feature of the PEPE coin. It is attracting a huge base of customers by avoiding transaction fees.
An anonymous developer (or developers) created a PEPE coin. On the official PEPE website it is mentioned that it has no affiliation with Pepe the Frog creator Matt Furie.
The Memecoin Phenomenon
The Memecoin phenomenon refers to the rapid rise in the popularity of these meme-inspired coins. They have certainly captured the attention of investors and crypto enthusiasts. There are some reasons behind the surge of meme coins. The foremost reason is social media and pop culture. Social media platforms like Twitter, Discord, and Reddit have played an important role in hyping the attention around meme coins, often motivated by viral memes, challenges, and shoutouts from influential figures.
These coins usually come with a passionate and dedicated fanbase. Dedicated communities promote the selected Memecoins. These digital currencies are designed to be user-friendly and hence attract a wide range of people. The other reason is their low cost which enables relatively easier entry. It also appeals as a get-tich-quick plan as it is capable of generating profits in a short period.
The involvement of celebrities is also one of the reasons for the rise of MemeCoins. Some prominent figures like Elon Musk, Mark Cuban, and Snoop Dogg have publicly supported these digital currencies.
However, one must invest in meme coins cautiously since it is not unaffected by the wider crypto market. They appear as fascinating and funny digital assets but it is crucial to approach the subject with caution and undertake a comprehensive evaluation.
Although the social sentiments around the PEPE coin remain positive, large PEPE holders have sold their tokens at a loss. This raises doubts about the token’s prospects.
Hence, it can be said that the future of MemeCoin is uncertain but their impact on the cryptocurrency market is undeniable.
The Future of PEPE
After the unusual price run, Pepe Coin slowed down recently. Despite the dip, whales continue fulfilling the PEPE up. Pepe price history shows that it got an exclusive start in the first three days of its launch.
On the 5th of May 2023, Pepe’s run continued and the memecoin reached an astonishing $1.8 Billion in market cap. However, this run was short-lived due to a spike in volatility. The last big move in price was seen on August 24th and 25th 2023 where $PEPE lost almost 27% of its value.
So, the path ahead seems uncertain. Experts have suggested that memecoins are fairly high-risk. There is no guarantee that investors will be protected in the event of fraud or other illegal activity as they are unregulated.
Who Holds the Most PEPE Crypto?
As per data from Etherscan, the top 15 holders of Pepe Token (PEPE) own a significant portion of the token’s total supply. Collectively, the top holders own over 87% of the total PEPE token supply. 40% of the token supply is owned by the largest holder. The top 5 holders own over 70% of the total token supply. Thus, these large holders also known as whales have the power to significantly affect the price of PEPE.
Conclusion
There is a lot of pressure on meme coin projects as the crypto industry is evolving. They have to prove their value besides just a worthy mascot. Meme coins are showing a rise in interest due to social media hype.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/11/05/what-is-pepe-coin-its-purpose-and-uniquness-among-memecoins/