Rare Pepe cards are assets which utilize counterparty blockchains. Counterparty assets are held within the Bitcoin Blockchain inside the traditional BTC transactions. Unlike the colored coins, Rare Pepes are not tethered to a specific BTC. This means that people can transfer Bitcoin without affecting the value of Rare Pepe. The technology behind PepeCash and Rare Pepes allow them to be traded on a decentralized counterparty-based exchange called DEx. On this exchange, traders can sell or buy extremely rare pepes in XCP denominations.
Because Rare Pepes are rare, a member of the Pepe community can create an interesting meme in anticipation that it is picked by the community. He or she will then determine the exact number of copies of their pepes that can exist. Under the meme, something like ‘rareness 132’ is written. This can be proved and verified on the Bitcoin Blockchain. It means that while it is possible to copy and paste the meme as many times as possible, only 132 people can actually own it. Such a meme is certified and signed by the creator. To make the currency deflationary, when pepe cash is created, more is burnt to create room for the new entrants.