Michelle Legge
By Michelle LeggeHead of Crypto Tax Education
Updated Apr 22, 2024
This article has been fact checked and reviewed as per our editorial policy.

What is Pepe Coin?

Pepecoin is yet another memecoin to join the ranks, based on the loveable (albeit troubled) Pepe the frog. Learn about Pepecoin and what makes it unique.

  • Pepe Coin, a meme coin built on Ethereum, gained rapid popularity after its April 2023 launch, boasting a $5 billion market capitalization. It implements a deflationary mechanism, a redistribution system, and a no-tax policy.

  • Challenges surfaced in August 2023 when tokens were moved from the project's wallet to exchanges, raising concerns. Subsequent token burns and advisor additions aimed to restore confidence.

  • Pepe Coin faces competition from Pepe 2.0, which imposes transaction taxes. Despite this, Pepe Coin persists in pursuing its roadmap objectives, including community partnerships and exchange listings.

What is Pepe Coin?

Pepe Coin ($PEPE) is a digital asset that gained traction as a meme coin built on the Ethereum blockchain. Since its public launch in April 2023, it quickly became one of the most actively traded cryptocurrencies, boasting a passionate community and a remarkable $5 billion market capitalization.

What is Pepe Coin?

How does Pepecoin work?

Pepe Coin operates on several unique principles:

  • Deflationary Mechanism: This mechanism burns a small percentage of tokens with each transaction, aiming to create scarcity and potentially drive up the value of the remaining tokens over time. The burning of tokens ensures a diminishing supply, which can increase the token's value.

  • Redistribution System: Initially, a portion of every transaction was redistributed to existing token holders, fostering engagement and incentivizing long-term investment. However, there have been discussions about discontinuing this feature. The redistribution system incentivizes holding Pepe Coin, as holders receive rewards based on their existing token holdings.

  • No-Tax Policy: Pepe Coin transactions do not incur additional fees, ensuring users can trade and transact without any extra costs, which distinguishes it from other cryptocurrencies that may impose taxes on transactions. This policy promotes ease of use and accessibility for users engaging in Pepe Coin transactions.

    How does Pepecoin work?

History of Pepe the Frog

Pepe the Frog originated as a character created by artist Matt Furie for his comic book "Boy's Club." It gained widespread popularity as an internet meme but was later co-opted for purposes involving hate speech and discriminatory content during the 2016 U.S. presidential election. Despite efforts to reclaim its positive image, Pepe the Frog remains a subject of controversy. Matt Furie, the creator of Pepe the Frog, has worked to reclaim the character's original, positive context through initiatives such as the "Save Pepe" campaign.

Pepecoin project changes

In August 2023, concerns arose within the Pepe Coin community when a significant amount of tokens were unexpectedly transferred from the project's wallet to centralized exchanges. This event led to a drop in the coin's price and raised doubts about its future. Later, it was revealed that disgruntled developers, who had since left the project, were responsible for the transfers, alleging they were "updating" the wallet. However, it was clarified that these individuals had stolen the tokens.

Subsequently, in an attempt to reassure investors, a substantial amount of Pepe Coin tokens were burned, and new advisors were brought on board to guide the project's direction. The burning of tokens reduces the overall supply, potentially increasing the token's value, while new advisors provide guidance and stability to the project.

Pepe Coin vs. Pepe Coin 2.0

Pepe Coin vs. Pepe Coin 2.0Pepe 2.0 emerged as a competitor to the original Pepe Coin, with some differences. Notably, Pepe 2.0 transactions incur a 1% transaction tax, which is utilized for marketing, liquidity, and community development purposes. This tax contributes to funding various aspects of the Pepe 2.0 project, distinguishing it from the original Pepe Coin's no-tax policy.

What’s the future of Pepe Coin?

Despite the challenges faced, Pepe Coin remains a prominent player in the cryptocurrency space. Its roadmap outlines phases such as community partnerships, exchange listings, and the establishment of a Pepe Academy, indicating ongoing development efforts. These initiatives aim to expand Pepe Coin's reach, enhance its utility, and solidify its position within the cryptocurrency market.

How to buy Pepe Coin

How to buy Pepe CoinInvestors interested in purchasing Pepe Coin can do so by setting up a digital wallet compatible with Ethereum and connecting it to platforms like Uniswap, where they can exchange other cryptocurrencies for Pepe Coin. The process involves creating a digital wallet, acquiring Ethereum or other compatible cryptocurrencies, and using decentralized exchanges like Uniswap to trade for Pepe Coin.

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