CoinWorld News Report:
Author: Day, Blockchain in Plain Language
In recent years, the Meme sector within the cryptocurrency industry has surged, propelled by influential figures such as Musk, gradually becoming a mainstream track and popular narrative in crypto. Many crypto KOLs, represented by figures like Vitalik Buterin, have shifted from initial skepticism to acknowledging the value of Meme.
Recently, the red-hot “Spicy Chicken” Pepe reached a market capitalization exceeding $4 billion, previously peaking over $7 billion during this Meme bull run. Even today, many are still puzzled by Pepe’s journey. Today, let’s explore how Pepe has evolved to its current status…
01
Pepe’s Meme Culture
Throughout the development of Memecoins, many leverage materials with historical significance or existing popularity on the internet, and Pepe is no exception. Named after the character created by American cartoonist Matt Furie, Pepe the Frog first appeared in his work “Boy’s Club”.
The comic, serialized on MySpace starting in 2005 and concluding in 2010, garnered attention on the internet. Among its four characters, Pepe (pronounced “Pepe”) won affection with its cute image and humorous expressions. If you are more involved in blockchain, you may have encountered three other Memecoins named after characters Brett, Andy, and Wolf, which also gained popularity for a time.
Pepe’s rise mirrors that of many internet sensations: starting in subculture forums like 4chan and niche communities, it caught the attention of social media influencers (KOLs) and exploded in popularity. It gained traction on cultural forums such as Myspace, Gaia Online, and 4chan in 2008, and by 2015, it became one of Tumblr’s most beloved viral images.
On social networks, the low cost of re-creation and redistribution allowed Pepe’s range of emotional expressions and internet Memes to spread rapidly, resonating widely among users. Initially a symbol of happiness, through internet users’ remixes and reinterpretations, it evolved into a symbol of sadness and despondency, reflecting the internet culture’s penchant for self-deprecation and dark humor.
Pepe’s sad image found resonance among people, becoming a means to express inner emotions, particularly used for self-mockery and expressing life’s hardships and setbacks. Widely utilized, it became a significant symbol in internet culture, also popular in Chinese internet culture as one of the “Four Kings of Despondency”, expressing negative emotions and hardships.
Pepe’s online evolution is a complex and multifaceted phenomenon. In 2015, the sad frog became associated with racial speech and the US presidential election, used to spread extremist views. Some Trump supporters adopted Pepe as their emblem, linking it with anti-political correctness and anti-establishment sentiments, leading to Pepe being misunderstood as a symbol of the “Alt-right” and racial hatred.
This misunderstanding exacerbated Pepe’s negative image, prompting creator Matt Furie to end it all, “killing” Pepe to prevent further misappropriation. In reality, even though the “sad frog” is “dead”, its popularity persists among netizens. As a widely used reaction image, everyone can freely use it to express inner emotions, including sadness or dejection.
02
Pepe Token
Benefiting from Pepe Frog’s rapid rise in popularity and extensive media exposure, Pepe Token (PEPE) was born in April 2023, swiftly becoming one of the objects of investment for many cryptocurrency enthusiasts. Within a month, PEPE’s market value exceeded $400 million, entering the top 100 cryptocurrencies by market capitalization.
PEPE was created in opposition to the complex token economic models of “dog series” Memecoins, aiming to return to Memecoin’s spirit of entertainment. Hence, its token economics avoid presales, burns, and taxes. PEPE aims to surpass other Memecoins and become a leader in the Memecoin field.
Moreover, PEPE drew inspiration from the former US President Trump’s campaign slogan “Make America Great Again”, adapting it to “Make Memecoins Great Again”. PEPE’s market operations employed strategies to attract attention from the cryptocurrency community, including tax-free policies, redistribution systems rewarding long-term holders, and deflationary mechanisms to maintain token scarcity. PEPE has close ties to MAGA (Make America Great Again) culture, attempting to translate this development into narrative momentum for token growth.
Currently, PEPE’s development has exceeded the team’s expectations, rebounding after listing on BN and recently surpassing $7 billion in market value, albeit with some recent declines. This surge is partly related to Trump’s cryptocurrency remarks, indicating Pepe’s development has ties to Trump.
03
Why Pepe Succeeded
Before PEPE emerged, many “dog coins” came and went, but only Pepe has reached its current height. Let’s briefly outline how PEPE got to where it is today:
Early on, PEPE attracted attention from whales and teams. These large holders identified PEPE’s potential through DEX fund flows and began accumulating. Additionally, some early buyers held NFTs related to PEPE, possibly tied to the initial team. Furthermore, the PEPE team blacklisted addresses that initially bought PEPE at extremely low prices and made huge profits before relinquishing contract control.
On April 17, discussions about PEPE suddenly increased on Twitter. Some medium-sized key opinion leaders (KOLs) started discussing and promoting PEPE, sparking heated debates on social media. Concurrently, from late April, Google searches for PEPE began to rise, indicating broader attention.
Shortly after its launch, PEPE Token quickly listed on several CEX/DEX platforms including Gate, OKEx, PancakeSwap, and BN. These listings were accompanied by a rise in token price. Following BN’s listing, profit-taking by some users combined with revelations of team cash-outs and uneven team allocations led to a significant drop in PEPE’s value. After a six-month adjustment period, amidst intensified anti-VC sentiments, interest in the Meme sector surged again, propelling PEPE to new highs and hinting at its potential to become a new leader in Memecoins.
In summary:
– Team: The team demonstrated exceptional capabilities with a top-notch marketing team, collaborating with influential KOLs early on and leveraging available resources.
– Rags-to-riches stories spread: Stories of early PEPE holders making fortunes spread across social media and the cryptocurrency community.
– FOMO sentiment: Following the craze around coins like Dogecoin and Shiba Inu, people were constantly seeking the next potentially explosive token. PEPE’s appearance and rapid growth triggered a fear of missing out (FOMO), leading to a self-reinforcing cycle of increasing purchases.
PEPE attracted over 100,000 holding addresses within less than a month of issuance.
CEX/DEX platforms played a crucial role in PEPE’s development, swiftly listing it on prominent platforms like MEXC, BN, OKX, and HTX. Seeing PEPE achieve 100,000 holding addresses in such a short time, these platforms took notice, attracting more users and funds into PEPE.
These are the reasons I’ve learned about why PEPE succeeded. From this, it’s evident that the gameplay of some Memecoins is similar. If you have different insights, feel free to comment and supplement.
04
Conclusion
Twitter KOL neso summarized the decisive factors influencing Memes’ growth in various market value stages, as shown in the following figure:
