The PEPE phenomenon: a meme coin that rocked the crypto world

At one point in their evolution, cryptocurrencies intersected with internet culture, and this crossing gave birth to a new subgenre of crypto assets, commonly known as meme coins. Dogecoin was the first project to successfully combine the appeal and lighthearted humor of internet memes with blockchain technology and create a unique digital asset that would provide a comical juxtaposition to the gravity of established cryptos like Bitcoin and Ethereum. It didn’t take long for the joke to turn into a trending topic, and eventually, Dogecoin became one of the most popular and prosperous cryptos in the market, ranking 7th in the crypto standings by market cap.

All signs indicated that these assets would gradually fade away and become a sure victim of the ruthless competition in the crypto realm until Pepe came along, proving that the meme coin movement was far from over. Pepe emerged at a time when confidence in meme coins was declining, and most investors were moving away from this asset category, so its stunning evolution represents an interesting and noteworthy phenomenon that has shaken the crypto market, as very few assets have.

The Pepe coin was launched in April 2023, being one of the youngest projects to join the meme coin niche. The crypto is based on the image and legacy of a well-known meme featuring the controversial cartoon character Pepe the Frog. The humanoid frog was created by Matt Furie in 2005 for his indie comic series Boy's Club and soon transitioned into meme coin territory, becoming one of the most recognizable memes in the late 2000s and an emblem of internet culture.

From a technical perspective, PEPE is an ERC20 token operating on the Ethereum blockchain. This provides Pepe with a reliable infrastructure and robust security mechanisms, lending the project legitimacy and recognition. The crypto also has an official website, PEPE.VIP, where members of its dedicated community can connect, discuss topics of interest and trade a wide variety of digital collectibles.

Immediately after launch, Pepe traded at very low values, but the listing on major exchanges like Binance led to a massive price spike, turning the crypto into an overnight sensation. By early May, Pepe had surged over 5,000%, helping early adopters register consistent profits. In 2024, Pepe’s growth slowed down, but the coin continued to appreciate at a steady pace, reaching an all-time high of $0.00002825 in December. With its surprising rise and all the attention it has attracted since, the Pepe coin contributed to the resurgence of the meme coins.

Pepe’s spectacular ascent raises questions about the factors that paved its path to stardom. For the most part, Pepe’s climb was fueled by the same forces that contributed to the popularization of all other meme coins: a combination of viral pop culture elements, strong community support, accessibility, and a touch of fear of missing out (FOMO), which is a common ingredient across all crypto crazes.

However, Pepe also boasts some particular characteristics that helped the asset stand out from the rest and played a key role in its development. These include:

Smart marketing – the success of a meme coin relies heavily on the popularity of the meme it uses to build its brand. The more popular a meme is, the higher the chances of attracting public attention. Pepe’s creators made a smart move when they chose the legendary Pepe the Frog as their symbol. This character is widely recognized all around the world and resonates with people from different generations, making Pepe an easily marketable product.

Community-driven growth – without technical innovations or real-world applications to push them forward, meme coins depend on user engagement and the loyalty of their fanbases to grow their value. An active and dedicated community can keep a token in the spotlight and boost its adoption, and Pepe has been extremely adept at using this community-driven virality in its favor. Apart from capitalizing on the popularity of Pepe the Frog, the asset also employs a redistribution model, where a fraction of each transaction is handed to token holders. This fosters a sense of belonging among community members and serves as an incentive for investing.

Deflationary mechanism – another aspect that has helped Pepe increase its value is represented by its deflationary tokenomics. Every time Pepe is traded, a small percentage of the transferred tokens is permanently burned. This mechanism reduces the circulating supply and creates scarcity in order to maintain a stable value and potentially drive prices up.

Zero-tax policy – one of Pepe’s core principles is its no-tax policy. This means that unlike many other digital currencies, which impose varying transaction fees, Pepe users don’t have to worry about paying additional fees when transacting tokens. This ensures low barriers to entry, being a particularly appealing feature for traders and investors looking to gain exposure to meme coins or crypto in general.

Simplicity – in a space that has become increasingly complex, with all sorts of projects that boast complicated features and functionalities, Pepe provides a breath of fresh air with its simple and straightforward approach. The meme coin is upfront about its lack of utility and presents itself as it is: a fun and unsophisticated crypto whose growth and return potential are powered by community culture and online virality.

With its clever approach and strong cultural appeal, Pepe has managed to outrank much older and more established coins and make a splash in the crypto scene, proving that even the unlikeliest of projects can succeed in this innovating and rapidly evolving industry.