There is a new kid in town: Pepe. Memeland is upside down. Where did this come from? Pepe asked for nothing, took no prisoners, but suddenly found himself in the top 100 cryptocurrencies. We haven't often seen a coin come up that fast. It only took Pepe a few weeks.
Table of Contents
So Pepe is a memecoin, although some people prefer the terminology shitcoin. A coin that has no intrinsic value or use value. The image represents a frog and is a creation of artist Matt Furie, who created "Pepe the Frog" in 2005.
Pepe the Frog now has many variants, such as Sad Frog, Angry Pepe and even Hate Frog, where alt right politics tried to pull Pepe to his feet . Matt Furie then sprang into action, as his creation was meant to be a positive symbol.
With the arrival of Pepe into the crypto world, it is safe to say that his positive image gives extra cachet to this meme coin.
Pepe website looks like it was put together in a few hours.
“ The dogs had their day, it’s time for Pepe to take reign . ”
That, of course, is a charming introduction to your coin. Right they are! All those little dogs, can’t we have a cat or frog?
Yes we can!
“Pepe is tired of watching everyone play hot potato with the endless derivative ShibaCumGMElonKishuTurboAssFlokiMoon Inu coins". You forgot Safe!
No shit Pepe, we’re with you there! It’s time for new shit!
"In Lord Kek we trust."
That is kek, yes. Although we don’t believe any of it. Then again, we’re not frogs.
Only 420,690,000,000,000 tokens were put on the market. For the same money, there would have been twice as many, but then they would only be worth half as much.
93.1% were sent to a liquidity pool. The LP tokens were burned and the contract terminated. 6.9% was left over to possibly manage future listings on centralized exchanges, bridges and liquidity pools.
The wallet containing these tokens is trackable with Ethereum Name Service name "pepecexwallet.eth". Sounds sexy.
Even though the creator of the site says it is a joke, we will still show it for form’s sake:
The best joke should always be saved for last: “Flip Bitcoin”.
The disclaimer at the bottom of his website tells the familiar story of shitcoins:
A philosophical look at Pepe
Well, philosophically ... It is, after all, a shitcoin.
It is better to talk about general ideas concerning memecoins or shitcoins. Certain things keep coming back and you can reasonably rely on them.
If you go to CoinGecko you will see "New coins" at the top. Pepe appeared there at some point. At the moment a coin just listed it’s not worth anything yet. Had you invested then, you would now have a virtual (and if you had sold maybe a real) fortune.
So you could simply invest a small amount in any shitcoin that pops up there that could become popular. Then you agree with yourself at how much rise you sell and then you also know what hit rate you should have.
This is quite difficult, because virtually every shitcoin flops.
Follow this discussion on Reddit.
“It seems like the guy who turned $27 into $1,000,000 with PEPE is a serial shitcoin trader and he started with a very large amount of money to exclusively trade shitcoins.”
It is possible that he is following the strategy we described above. Alternatively, it is possible that he launches one shitcoin after another himself and cashes in when it hits big.
It is also possible that he is an insider, getting inside information from all sorts of people involved in such a coin.
If we consider the number of coins that are added daily, about 10, and then take an amount of 25 euros that you put in, you will have to put in new shitcoins about 250 euros a day. Per month that is 7500 euros. If you are already rich this is possible, but eh....
Of course, you can take a different approach. You only buy memecoins that have a nice picture and website and don’t buy coins that already have value above 0.0001 cents or so. Then you might be much cheaper off.
The problem with this kind of thing is that you must put a lot of time into it. You must constantly watch where to buy the coins and what time is right to sell. Since these coins do not yet have a listing on major exchanges you will have to purchase them from obscure places. Once they are worth something you still must be able to sell them because you don’t always find buyers for your coins.
The Pepe problem
So once a memecoin finally does what you bought it for, the smart people run away with the money. Most meme coins don’t make the top 100. The one that does should be sold as soon as possible if you bought it in the beginning.
Those who get in when the coin is already high risk a lot for little profit. Pepe is probably not going to make the top 10. If it does, the relative profits are not that high at all, namely x10. That sounds pretty nice, but once it starts to drop, your money will be gone in no time.
So you have to buy a coin like Pepe early or not. A lot of coins like Pepe are long gone before they even get near the top 100.
Another common phenomenon is the rug pull. This involves people with a lot of coins selling their entire bag and then the coin goes to 0.
The SafeMoon scenario is the most obvious end of this story. Pepe may rise for a while, until the stretch is gone. Then a longer or shorter period of stabilization follows, after which the coin slowly sinks into oblivion.
Those who still want to cash in quickly can do so now, but if it’s at 0 or so tomorrow, don’t say we didn’t warn you!