What Is Pepecoin? How Does It work? A Comprehensive Guide

What is Pepecoin?

Pepecoin (PEPE) is an ERC-20 token that was launched in late April 2023 and is part of the memecoin craze that has taken the crypto world by storm. As with other memecoins, Pepecoin’s market capitalization has been driven by social media hype and community enthusiasm. Pepecoin was inspired by the “Pepe the Frog” meme, which was created by Matt Furie in his cartoon “Boy’s Club.”

The price action of Pepecoin in the initial days was driven by frog-themed memes that the founding team and its followers used on social media. The token experienced an astonishing price surge in 2023 that pushed its market capitalization from a few million dollars to a billion in a matter of days.

Key Takeaways

  • Born from the memeosphere, Pepecoin rocketed to a billion-dollar market cap in weeks, riding a viral wave of internet hype.
  • Despite its early success, PEPE’s future remains unclear. The project’s roadmap outlines plans for integrating DeFi, NFTs, and potential real-world applications, but there are no guarantees.
  • Pepecoin, is an ERC-20 memecoin that can be compared to other popular memecoins such as SHIB and DOGE.

What Is The History Of Pepecoin?

Pepecoin (PEPE) is a cryptocurrency launched in April 2023 on the Ethereum blockchain. Inspired by the popular internet meme “Pepe the Frog,”1 PEPE falls within the category of memecoins such as DOGE and SHIB cryptocurrencies, whose value is largely driven by online communities and cultural relevance.

While the identities of the developers remain anonymous2, Pepecoin entered the market without significant prelaunch promotion. Instead, it relied on organic traction within online communities, particularly those centered around Pepe memes. This community-driven approach resonated with early adopters, and PEPE quickly gained momentum.

Within three weeks of launch, Pepecoin surpassed a $1 billion market capitalization3, a feat significantly faster than similar memecoins like Dogecoin and Shiba Inu. This rapid growth was fueled by widespread meme sharing, social media engagement, and a sense of community within the PEPE token holder base.

However, the volatility inherent in memecoins soon revealed itself. Following the initial surge, PEPE’s price experienced several sharp drops due to profit-taking by early investors. This cycle of rapid growth and correction has continued to define PEPE’s price trajectory, raising concerns about its long-term stability.

Despite the fluctuations, PEPE boasts a dedicated community that actively promotes the token and contributes to its development. The project’s roadmap outlines plans for DeFi, non-fungible token (NFT) initiatives, and potential real-world use cases.

How Do SHIB and PEPE Compare?

Shiba Inu (SHIB) and Pepecoin (PEPE) are both memecoins, cryptocurrencies inspired by popular internet memes, that have taken the crypto world by storm. While they share some similarities, they also have key differences that set them apart. SHIB has moved on from being a pure meme play as its ecosystem has expanded to include DeFi tools, an exchange, and several new tokens.

FeatureShiba Inu (SHIB)Pepecoin (PEPE)
Token typeERC-20ERC-20
Total supply1 quadrillion100 quadrillion
Current price (USD)$0.00000986$0.00000122
Market cap (USD)$5.8 billion$500 million
Both SHIB and PEPE have massive supply limits.

What Are The Tokenomics Of Pepecoin (PEPE)?

PEPE’s maximum supply is a staggering 100 quadrillion PEPE tokens4, embracing the inflation-mocking spirit of memecoins. Most (93%) were used to seed liquidity pools, ensuring immediate accessibility. The remaining tokens reside in a multisig wallet for potential future use cases, though their specifics remain undisclosed. According to CoinGecko5, the meme coin has a market capitalization of over $500 million, ranking it in the top 120 cryptos on the market.

PEPE has an enormous supply, which is why, even with an impressive market cap, the token's value remains low.
PEPE has an enormous supply, which is why, even with an impressive market cap, the token’s value remains low. Source: CoinGecko

How Has Pepecoin (PEPE) Traded in the past year, and what is the PEPE price prediction?

PEPE is extremely volatile. The Graph below from TradinView6 shows that shortly after its launch, the meme coin skyrocketed in value to its all-time high of $0.00000431, with a market capitalization well above $1 billion in May. The surge was followed by a massive crash, which bottomed out in November.

Since then, PEPE has recovered to $0.00000122, which is around 70% below the all-time high. When it comes to PEPE price predictions, the truth is that the project is incredibly unpredictable due to the massive supply, anonymous developers, questionable multi-sig wallets, and reliance on social media hype7.

PEPE saw a spectacular surge and a sudden crash, as is often the case with memecoin.
PEPE saw a spectacular surge and a sudden crash, as is often the case with memecoin. Source: TradingView

Final Thoughts on Pepecoin

epecoin’s meteoric rise within the memecoin landscape highlights the power of internet buzz and community sentiment. However, its future remains uncertain. The project currently lacks established utility beyond its memetic appeal, relying heavily on online hype and volatile price swings. While plans for DeFi integration and NFT ventures offer potential pathways to diversify its value proposition, their effectiveness in mitigating volatility and attracting long-term investors remains untested. Only time will tell if the green frog can leap beyond the meme pond and secure a stable foothold in the broader cryptocurrency ecosystem.

Frequently Asked Questions

What Is Pepecoin?

Pepecoin (PEPE) is a cryptocurrency launched in April 2023 on the Ethereum blockchain. Inspired by the ubiquitous “Pepe the Frog” meme, PEPE falls within the category of memecoins, whose value largely depends on online buzz and cultural relevance.

Who founded PepeCoin?

PepeCoin was created by an anonymous developer or group of developers. The founder’s identity remains unknown.

What was the launch price of PepeCoin?

PepeCoin was launched in April 2023 on the Ethereum blockchain. Its initial price was $0.000001 per coin.

What Gives Memecoins Like PEPE Value?

Pepecoin’s meteoric rise in popularity is an interesting case study for understanding how memecoins create and retain value. The team behind Pepecoin capitalized on the meme culture on social media, which helped those who loved the culture to “ape” into it.

Additionally, active community members helped to raise awareness and increase interest in the memecoin, which drew in new users and investors. However, beyond the cultural aspects, Pepecoin lacks a fundamental reason to retain value.

Peter Barker

WRITTEN

Peter Barker

Peter is an experienced crypto content writer and a DeFi enthusiast with more than 3+ years of experience in the space. Previously a journalist and news editor at a leading European news sourcing agency.

Recent posts

View more