After the crypto winter, meme coins appear to be experiencing a revival. In recent weeks, aficionados of cryptocurrency have been investing in Pepecoin. And those who have long observed the digital currency sphere are experiencing a sense of déjà vu.
This cryptocurrency, like Dogecoin, is based on a popular internet meme. However, this time it features Pepe the Frog, a beloved cartoon figure that has become a symbol for alt-right, anti-Semitic, and white supremacist groups. In just two weeks, the value of PEPE has skyrocketed by roughly 500%.
Here is what you need to know about Pepecoin:
What is Pepecoin? According to the Twitter account for Pepecoin, it is “the most memeable meme coin in existence.” It is leaning heavily into this notion, taking subtle jabs at Dogecoin and creating its own Pepe memes that depict the frog urinating on other meme coins.
The coin launched with little fanfare on April 17th, and while it is based on the Pepe the Frog meme, it has no official connection to Matt Furie, the artist behind the original cartoon. It further leans into humor by having a maximum circulating supply of 420,690,000,000,000 coins.
Despite its lack of seriousness, it has already become one of the 50 largest cryptocurrencies being traded, and trading volume in the coin was up 425% on Friday.
Where is Pepecoin Trading Today and How High Has It Spiked? Pepecoin saw its price more than double on Friday alone. Since its April 17 launch, it has risen by 580%. One reason for this surge could be Binance’s decision to list the token on Friday afternoon in its “innovation zone,” the market’s largest exchange.
However, in real-world dollars, it is still an incredibly inexpensive coin. To convert them into a single penny, you would need to purchase nearly 3,000 Pepecoin.
It is worth noting that even Binance has urged caution, stating, “Please note that the token has no utility and it is created by an anonymous team. . . . Also, there are signs that allegedly certain insiders or team members were able to buy 7% of the total token supply minutes after TGE [the Token Generation Event, when coins become publicly available].”
What is Pepecoin’s Market Cap? Due to the large number of Pepecoin on the market and the soaring price, the market capitalization of this meme coin is already well above $1 billion. As of Friday afternoon, it stood at $1.34 billion and was still climbing.
Is There a Risk of a Rug Pull with Pepecoin? Whenever a coin experiences such rapid growth, caution is advised. When the focus of the coin is an internet meme that is associated with so many negative groups, it is another red flag.
Critics have pointed out that the coin has several “whales,” or individuals who hold large amounts of the token. If they choose to sell their holdings, average investors could see the value of their holdings evaporate. This led to some short selling on Pepecoin early on, but so far, the individuals who have bet against the token are the ones who have lost money.
Historically, How Have Meme Coins Performed? Thus far, even as celebrities like Elon Musk have hyped them up, the most significant meme coins have failed to maintain their value. Dogecoin never reached its goal of a $1 value and is currently trading at around 8 cents, which is approximately the same as it was trading for before its significant surge. Shiba Inu, another popular meme coin that experienced a brief surge, is trading well below a penny, around where it was in October of 202
Moritz Pindorek (Moritzpindorek.com)
Social Media, Marketing & Blockchain
Crypto/Web 3 Advisor, Top 10 Crypto Influencer 2022(Forbes Monaco) & Top 10 Entrepreneur 2022 (Forbes Monaco)
Owner and writer for Cryptouserguide.com