Author: Day, Plain Blockchain
In recent years, the Meme sector in the cryptocurrency industry has surged dramatically. Influenced by figures like Elon Musk, Meme has emerged as a mainstream track and popular narrative within crypto. Many crypto KOLs, led by figures like Vitalik Buterin, initially showed reluctance but have since softened their stance, acknowledging the value of Meme.
Recently, the popular Meme “Spicy Chicken” Pepe reached a market capitalization of over $4 billion, having once surged past $7 billion, showcasing outstanding performance in this round of Meme frenzy. Even today, many are still unclear about Pepe’s origins. Today, let’s delve into how Pepe has evolved step by step…
01
Pepe’s Meme Culture
Looking at the development of Memecoins, most leverage materials with a significant online history or inherent popularity as their carrier, 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.”
This comic began serializing on MySpace in 2005 and concluded in 2010, garnering attention on the internet. Among the four characters, Pepe (phonetically “Pepe”) is one, winning affection with its cute appearance and humorous expressions. Those more versed in blockchain may also encounter Memecoins related to the other three characters (Brett, Andy, Wolf), most of which have seen speculative trading.
Pepe’s path to popularity mirrors many viral internet trends: initially gaining traction on subculture forums like 4chan and other niche groups, then catching the attention of social media influencers (KOLs) and exploding in popularity. In 2008, it gained popularity on cultural forums such as Myspace, Gaia Online, and 4chan, and by 2015, it became one of the most popular viral images on social platform Tumblr.
On social networks, the low cost of remixing and redistributing makes Pepe emoticons and internet memes that cover all emotions spread rapidly and resonate among a wide audience. Initially a character expressing joy, Pepe gradually evolved into a symbol of sadness and despair through internet users’ remixing and reinterpretation, reflecting the popularity of self-deprecation and self-deprecation in internet culture.
People found resonance in Pepe’s melancholic image, using it to express inner emotions, particularly for self-deprecation and expressing life’s difficulties and setbacks. This emoticon has been widely used and became an important symbol in internet culture. In Chinese internet culture, the Sad Frog is also popular, selected as one of the “Four Kings of Melancholy,” symbolizing expressions of negative emotions and frustrations.
Pepe’s image evolution online is a complex and multifaceted phenomenon.
The Sad Frog became associated with racial rhetoric and the US presidential election in 2015, used to spread extremist messages. Some Trump supporters adopted Pepe as their emblem, linking it to anti-political correctness and anti-establishment sentiments. This led to Pepe being misunderstood as a symbol of “Alt-right” and racial hatred.
This misunderstanding further exacerbated Pepe’s negative image, prompting his creator, Matt Furie, to end it all to prevent Pepe from being further tarnished.
In fact, despite “Sad Frog” being “dead,” it continues to remain popular among internet users as a widely used emoticon, freely expressing inner emotions, including sadness or despair.
02
Pepe Token
Thanks to the rapid rise in Pepe the Frog’s popularity and extensive media exposure, Pepe Token (PEPE) was born in April 2023, quickly becoming one of the objects of interest for many cryptocurrency enthusiasts. Within just one month, PEPE’s market value exceeded $400 million, entering the top 100 cryptocurrencies by market capitalization.
PEPE was created in defiance of the complex token economic models of “Dog series” Memecoins, aiming to return to the entertainment spirit of Memecoins. Therefore, its token economics avoid complex operations such as presales, burns, and taxes. PEPE aims to surpass other Memecoins and become a leader in the Memecoin field.
Additionally, PEPE drew inspiration from former US President Trump’s campaign slogan “Make America Great Again,” adapting it to “Make Memecoins Great Again.”
PEPE’s market operations have implemented strategies to attract attention from the cryptocurrency community, including tax exemption policies, redistributive systems rewarding long-term holders, and a deflationary mechanism to maintain token scarcity. PEPE is closely linked to MAGA (Make America Great Again) culture, attempting to transform this development into a narrative driving token growth.
Currently, PEPE’s development has exceeded the team’s expectations. After listing on BN and adjusting, it started to rise again recently, briefly surpassing a $7 billion market value in this recent surge, possibly influenced by Trump’s cryptocurrency remarks. From the above understanding, we can see that Pepe’s development is also connected to Trump to some extent.
03
Why Pepe Succeeded
Before PEPE, many “dog coins” had come and gone, but only Pepe has reached its current height. How did PEPE get to where it is today? Let’s briefly summarize:
PEPE garnered attention from some whales and teams early on. These whales analyzed the flow of funds on DEX and identified PEPE’s accumulation period, starting to build positions. Additionally, early buyers also held NFTs related to PEPE, possibly linked to the initial team, and the PEPE team blacklisted addresses that profited immensely from buying PEPE at extremely low prices before relinquishing contract control.
On Twitter, discussions about PEPE suddenly surged on April 17th, with some mid-sized key opinion leaders (KOLs) starting to discuss and promote PEPE, sparking debate on social media. Simultaneously, Google searches began to rise from the end of April, indicating PEPE was gaining broader attention.
Shortly after its launch, PEPE Token quickly listed on several CEX/DEX platforms including Gate, OKEx, PancakeSwap, and BN. These listings coincided with a rise in token price. After listing on BN, some users took profits, coupled with team cash-outs and uneven distribution, causing a significant decline in PEPE. After a six-month adjustment period, as anti-VC sentiment intensified and Meme fever surged again, PEPE surged to new highs, hinting at a potential new leader in the Memecoin space.
In summary, the reasons include:
– Team: A highly capable team with top-notch marketing skills, early collaboration with influential KOLs, and extensive resources.
– Rags-to-riches stories spread: Stories of early PEPE holders making massive gains spread through social media and the cryptocurrency community, sparking interest and curiosity.
– FOMO sentiment: After experiencing the frenzy of coins like Dogecoin and SHIB, people were constantly looking for the next potential skyrocketing token. PEPE’s emergence and rapid growth triggered fear of missing out (FOMO), driving more people to purchase PEPE and creating a self-reinforcing cycle. PEPE attracted over 100,000 holding addresses in less than a month.
– CEX/DEX push: Trading platforms played a crucial role in PEPE’s development. Seeing PEPE reach over 100,000 holding addresses in a short time, this heat attracted the attention of trading platforms, bringing in more users and funds to PEPE.
These are the reasons I’ve gathered about why PEPE succeeded. From this, it’s evident that the playbook for some Memecoins is similar. If you have differing views, feel free to comment and add.
04
Conclusion
Twitter KOL neso summarized the components that determine the growth of Meme through various market cap stages, with factors like those in the following chart being decisive:
