Pepe Coin, a new cryptocurrency, was launched in the market in April 2023 to compete with the likes of Dogecoin and Shiba Inu. The category of cryptocurrency that classifies Pepe Coin and its competitors under the category is called memecoin. As the name states, memecoins are cryptocurrencies inspired by elements of memes that have become trending over time on social networking platforms. This newcomer to the memecoin space is inspired by the cartoon frog that often finds its way into popular internet memes with emoticons designed to depict the feeling associated with the meme.
The arrival and rise of the Pepsi coin
Backed on the Ethereum blockchain, Pepe Coin also referred to as the $PEPE token, made its debut on the cryptocurrency market on April 16, 2023. Its release came discreetly with no shout-outs from influencers or planned airdrops of free PEPE tokens for network winners. Social media contests.
The developers of this coin, who are not being identified, have put a “no-tax policy” on PEPE which makes it attractive to small and experimental investors. This means that investors who trade in Pepe Coins will not be charged gas fees from Pepe transactions.
The Pepe Coin ecosystem also comes with a rewarding process for long-term pioneers as well as a convenient mechanism to burn some reserves to maintain the desired rarity. The token has a predetermined circulating supply of 391,790,000,000,000 tokens.
Well, these factors soon started attracting cryptocurrency investors eager to buy some Pepe Coins, even if it just held new value, because of its distinctive meme character inspiration.
At the time of its launch in April, PEPE hit the trading floor with its first price of $0.000000001 (roughly Rs. 0.000000083).
In the first 17 days of its launch, the PEPE token surged 7,000 percent, and is said to have touched a market cap of $1.8 billion by May 5.
One month and three days after its launch, PEPE is trading at $0.000001514 (roughly Rs. 00013), according to CoinMarketCap as of Friday, May 19.
Interestingly, however, the $1.8 billion (roughly Rs. 14,890 crores) in capitalization that Pepe Coin sat on by May 5 quickly fell to its current valuation of $597.9 million (roughly Rs. 4,950 crores) as market conditions became turbulent. amid the economic slowdown in the United States.
Red flags and speculation
In the cryptocurrency circle, enthusiastic investors often get swept away in the pomp and hype around new cryptocurrencies and end up investing money on random coins, happily wishing the next cryptocurrency hack “to the moon.”
After the popularity of Pepe Coins started to make headlines, it created intrigue among the people, many of whom started to speculate whether Pepe Coin was some kind of scam project.
The creators of this coin were unknown, its unprecedented price skyrocketed in days, and its rapid valuation began to decline as factors that led to the suspicion that Pepe Coin was likely a rug-making scam.
In rug withdrawals, scammers release random crypto tokens and allow these tokens to pump as high as possible. Once they have raised their target capital from the investors, they dump projects with the group leaving the investors cut and dried.
Current status and comparison with DOGE, SHIB
While giant cryptocurrency exchanges like Binance and CoinMarketCap have already included the Pepe token on their platforms for trading, some people are still skeptical about doing business with $PEPE, at least for now.
The craze around this altcoin got even crazier after Elon Musk recently posted a random meme featuring Pepe the Frog.
Musk’s followers were quick to point out that this subtle admission from Musk could pump Pepe and influence Musk’s favorite memecoin, DOGE.
Meanwhile, neither Dogecoin nor Shiba Inu have been able to show any significant price changes in the past year.
At the time of writing, DOGE is trading at $0.082 (roughly Rs. 6.8), while SHIB is valued at $0.0000087 (roughly Rs. 0.000718), according to Gadgets 360’s cryptocurrency price tracker.
Just over a month since its launch, the rise of Pepe Coin is still a topic for skeptics to keep an eye on.
Industry experts echoed their suggestion for investors to exercise extreme caution before investing in cryptocurrencies without due diligence.
Cryptocurrency is an unregulated digital currency that is not legal tender and is subject to market risk. The information in the article is not intended to be and does not constitute financial advice, business advice, or any other advice or recommendation of any kind provided or endorsed by NDTV. NDTV will not be liable for any loss arising from any investment based on any recommendation, forecast or other information contained in the article.