The PEPE memecoin seems to be an extension of cyclical market behavior in the cryptocurrency industry where every now and then, there’s a brand new memecoin, and the hype surrounding it takes over completely. In less than a couple of months since its inception, PEPE memecoin managed to enter the top 100 projects, getting a market capitalization upwards of a whopping $400 million.
Memes have become an integral part of the internet, and it shouldn’t come as a surprise that they’ve also clashed with the cryptocurrency industry. While most coins focus on utility, memecoins focus on getting viral through the explosive nature of memes and how quickly they spread.
PEPE memecoin was launched in April 2023, and within three weeks, it had a market cap of over $420 million. Currently, it is traded on major exchanges such as Huobi, MEXC, OKX, and Uniswap.
PEPE is designed to be “the most memeable memecoin in existence” and has no intrinsic value or expectation of financial return. This is nothing new in the field of crypto, as multiple other memecoins have come into existence with similar claims.
The token only aims to “pay homage to a meme we all love and recognize,” and Pepe the Frog is a popular meme created by cartoonist Matt Furie in 2005.
Considering the token’s purpose and vision, there are several risks and challenges associated with it. Market volatility is one of the significant risks, as PEPE has been one of the most volatile cryptocurrencies since its creation. Although the prices seem to skyrocket, it could lose its value just as quickly, as noted by the creators.
In addition, liquidity concerns could prevent holders from cashing out their gains on centralized exchanges. More listings on such exchanges could help alleviate this concern in the future.
Security risks are also imminent with the growing popularity of memecoins. Bad actors may try to capitalize on the hype and scam people out of their money.
In conclusion, the PEPE memecoin has caused a stir within the cryptocurrency market, acquiring a total addressable capitalization of upwards of $400 million in just two weeks after its launch. Many draw comparisons between PEPE and other memecoins such as SHIB, DOGE, FLOKI, but only time will tell if this meme-inspired token will be here to stay. Despite the skepticism surrounding memecoins, they continue to generate significant interest and investment.
Source: Cointelegraph
