{"id":4482,"date":"2025-04-23T13:13:18","date_gmt":"2025-04-23T12:13:18","guid":{"rendered":"https:\/\/investx.fr\/en\/?p=4482"},"modified":"2025-04-23T13:27:05","modified_gmt":"2025-04-23T12:27:05","slug":"pepe-purpose-function","status":"publish","type":"post","link":"https:\/\/preprod.investx.fr\/en\/learn\/crypto\/pepe\/","title":{"rendered":"PEPE : What it is, how it works, and why it matters in 2026 ?"},"content":{"rendered":"\n

What is PEPE ?<\/h2>\n\n\n\n

PEPE<\/strong> is a memecoin<\/strong> cryptocurrency<\/a><\/strong> launched in April 2023, based on the famous internet meme Pepe the Frog. Unlike traditional cryptocurrencies that emphasize utility and practical use cases, this token falls into the memecoin category, whose value primarily rests on cultural popularity and community sentiment.<\/p>\n\n\n\n

As an ERC-20 token<\/strong> operating on the Ethereum blockchain<\/a><\/strong>, PEPE benefits from the security and infrastructure of this established platform. With a market capitalization of approximately $3 billion<\/strong> as of April 2025, it has established itself as one of the most significant memecoins in the market, regularly ranking among the top 40 cryptocurrencies by valuation.<\/p>\n\n\n\n

PEPE is characterized by its deflationary mechanism<\/strong> that involves burning a small portion of tokens during each transaction, gradually reducing the total supply and potentially creating upward pressure on the price in the long term.<\/p>\n\n\n\n

The History of PEPE<\/h3>\n\n\n\n

The token’s history officially begins on April 14, 2023<\/strong>, when it was created on the Ethereum blockchain. Its launch occurred in a particular context where memecoins were experiencing renewed interest, especially after the success of Dogecoin<\/strong> <\/a>(DOGE) and Shiba Inu<\/a><\/strong> (SHIB).<\/p>\n\n\n

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\"Pepe<\/figure>\n<\/div>\n\n\n

PEPE’s initial growth was spectacular<\/strong> : in just five days after its launch, its market capitalization exceeded $100 million. This meteoric rise can be attributed to the crypto community’s enthusiasm for memecoins and the immediate recognition of the Pepe the Frog character, already popular on the internet for more than a decade.<\/p>\n\n\n\n

During 2023, PEPE experienced several cycles of rises and falls characteristic of memecoins, with extreme price variations<\/strong> that could reach several hundred percentage points in just a few days. Despite this volatility, the token gradually gained legitimacy with listings on major exchange platforms like Binance<\/strong> and Coinbase<\/strong>.<\/p>\n\n\n\n

The year 2024 marked a consolidation<\/strong> phase for PEPE, with a more stable user base and an established presence in the crypto ecosystem. In 2025, the token continues to attract attention from investors looking for speculative opportunities in the memecoin sector.<\/p>\n\n\n\n

Who Created the PEPE Memecoin ?<\/h3>\n\n\n\n

Although the Pepe the Frog meme was originally created by artist Matt Furie<\/strong> in 2005 for his comic book “Boy’s Club,” the PEPE token has no official connection to him. According to several sources, the creator of the PEPE memecoin is Zachary Testa<\/strong>, a landscape photographer who reportedly launched the project in April 2023.<\/p>\n\n\n\n

Unlike many crypto projects, the team behind PEPE initially maintained a certain anonymity<\/strong>, a common practice in the memecoin universe. This approach aligns with the decentralized philosophy that often characterizes these projects, where the community plays a more important role than the founders.<\/p>\n\n\n\n

The cryptocurrency launch occurred without a presale<\/strong> or developer allocation, meaning the creators had to purchase their tokens on the market like any other investor. This approach was perceived positively by the community, who saw it as a sign of fairness in the initial distribution.<\/p>\n\n\n\n

What is the Purpose of PEPE Crypto ?<\/h2>\n\n\n\n

Unlike traditional cryptocurrencies<\/strong> that aim to solve specific problems or offer concrete services, PEPE has limited utility<\/strong> in terms of technical functionalities. Its primary function is to be a speculative asset<\/strong> in the cryptocurrency ecosystem.<\/p>\n\n\n\n

Speculation and Investment<\/h3>\n\n\n\n

The main use of this crypto lies in its potential for financial gain<\/strong> for investors. Its high volatility attracts traders looking for quick profits, while some long-term investors bet on increasing adoption of memecoins in the future.<\/p>\n\n\n\n

Deflationary Mechanism<\/h3>\n\n\n\n

PEPE incorporates a token burning system<\/strong> during transactions, which progressively reduces the total supply. This deflationary mechanism aims to create artificial scarcity that could theoretically support the price in the long term, although this remains highly speculative.<\/p>\n\n\n\n

Community Belonging<\/h3>\n\n\n\n

Owning PEPE also represents a form of community membership<\/strong> sharing a common interest in meme culture and cryptocurrencies. This social dimension should not be underestimated, as it constitutes a significant part of the value proposition of memecoins.<\/p>\n\n\n\n

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How Does the PEPE Crypto Work ?<\/h2>\n\n\n\n

PEPE is an ERC-20 token<\/strong> that operates exclusively on the Ethereum blockchain<\/strong>, the second-largest cryptocurrency platform in the world after Bitcoin<\/a><\/strong>. This infrastructure choice has important implications for the token’s operation and future.<\/p>\n\n\n

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\"Pepe<\/figure>\n<\/div>\n\n\n

Integration with the Ethereum ecosystem offers several significant advantages to PEPE :<\/p>\n\n\n\n