Origins and Transformation: A Cryptographic Experiment of a Meme
PEPE Coin (PEPE) was launched in April 2023 as a deflationary meme coin on the Ethereum network, created in homage to the internet meme “Sad Frog Pepe.” This green frog character was originally created by cartoonist Matt Furie in 2005 and became a global internet cultural icon due to its humor and self-deprecation, though it has also been controversial for being misused by extremist political groups.
The anonymous development team behind PEPE Coin attempted to transform the cultural symbol into a crypto asset, following the successful paths of Dogecoin (DOGE) and Shiba Inu (SHIB). Its core mechanisms include zero transaction fees, a token redistribution system, and a burn mechanism to attract long-term holders and maintain token scarcity. According to JuCoin market data, after listing on Binance in May 2023, PEPE Coin’s market capitalization once exceeded 1.6 billion USD, ranking as the third-largest meme coin, though it lost over 1 billion USD in value due to market fluctuations in 2024.
Unique Mechanisms: Deflationary Model and Community-Driven Approach
PEPE Coin’s design centers on three core mechanisms:
- Deflationary Model: A total supply of 420.69 trillion tokens, with 93.1% injected into the Uniswap liquidity pool and the LP tokens burned, leaving 6.9% for exchange listings and ecosystem incentives.
- Redistribution System: Every transaction rewards long-term holders, encouraging users to HODL rather than sell in the short term.
- Zero-Fee Trading: Reduced transaction friction to attract high-frequency traders and community participants.
Although these mechanisms are theoretically designed to enhance token stability, their actual effectiveness is limited by the high volatility of meme coins. For example, a tweet by Elon Musk mentioning Pepe in 2024 once caused the price to surge 18% in a single day, only to quickly fall back due to a lack of underlying demand.
Market Performance and Risks: High Volatility and the Perils of an Anonymous Team
As of March 4, 2025, PEPE Coin is priced at 0.0000080 USD (approximately ¥0.000058), down over 70% from its historical high, with a 24-hour trading volume of ¥7.414 billion, primarily on Binance (29.24%) and Huobi (8.66%). Its circulating market value stands at ¥24.457 billion, ranking 37th globally.
Despite being based on the Ethereum PoS mechanism, PEPE Coin faces several risks:
- Regulatory Uncertainty: The SEC may classify meme coins as unregistered securities, leading to delisting from exchanges
- Technical Dependence: The smart contract has not undergone extensive stress testing against attacks
- Market Manipulation: The team controls 6.9% of the tokens, posing a risk of concentrated sell-offs.
Investment Strategy: Participating Rationally in the Meme Coin Market
Investors considering PEPE Coin are advised to adhere to the following principles:
- Strict Position Control: Invest no more than 5% of total assets;
- Stop-Loss Strategy: Set a price trigger (for example, exit if the price falls 30% below the purchase price);
- Continuous Monitoring: Track real-time price fluctuations through JuCoin and analyze token flows using on-chain tools.
The essence of meme coins is that they are “emotion-driven assets,” with price movements highly correlated with social media hype and celebrity endorsements. Rational investors should avoid being swept up by FOMO and always remain mindful of market risks.
Future Outlook: The Tug of War Between Cultural Symbols and Financial Instruments
The long-term value of PEPE Coin depends on two key factors: community cohesion and technological expansion. If the development team can fulfill the “Meme Era” promise—such as integrating NFT or GameFi scenarios—or become a bridge connecting internet culture with the crypto economy, it may succeed; otherwise, it might fall into the same volatile pattern that has plagued most meme coins. Investors must recognize that in the crypto market, a sense of humor and risk awareness are both indispensable.
Neason Oliver
