Hot Features
Premium
Trade like a pro: Leverage real-time discussions and market-moving ideas to outperform.
Meme coins are cryptocurrencies inspired by memes and jokes commonly found on the internet. For example, Dogecoin was inspired by the Dogecoin created from a viral photo of the Shiba Inu. These cryptocurrencies are often not intended to be taken seriously. Still, they can gain momentum as community members are interested in the latest trend and want to participate in relevant activities.
What is a Meme Crypto?
While meme coins and cryptos have gained popularity with more and more operators and corporations, the new payment wave has yet to hit many companies. Sites such as Amazon and leovegas.com/en-ca/ don’t currently have meme coins, nor other options as a payment option, time will tell if the trend does gain momentum.
The New Era of Meme Investment
Dogecoin was released in late 2013 after being created by software developers as a joke about the Doge meme. This caused the creation of several subsequent meme coins. As of October 2021, about 124 meme coins are available on the market. Common examples are Dogecoin and Shiba Inu. The idea of meme coins has grown into one of the hottest investment opportunities in the cryptocurrency space.
The 50,000,000% price surge of Shiba Inu over the last 12 months has led to the potential of coins inspired by these internet trends to remind people of their profitability. And while the great benefits of these assets and the seemingly harmless animal mascots are hard to ignore, investing in meme coins has its difficulties.
Meme coins tend to be very volatile. They are primarily community-driven and can become popular overnight with online community approval and ‘FOMO’ (fear of missing out). Still, as traders turn their attention to the next meme coin, its price can collapse unexpectedly. Another thing that sets meme coins apart is their huge supply force. For example, the total supply of Shiba Inu is 1 trillion tokens, but DOGE has no maximum pool, and more than 100 billion tokens are already in circulation.
How Meme Coins Works
Meme-based currencies like Dogecoin have gained a lot of support over the years. They have spawned imitators such as Shiba Inu, Dogelon Mars, Samoyed Coin, and Doge Dash, which are derivatives of Dogecoin. Meme tokens generally do not have a coin-burning mechanism, which explains the relatively low price of large supplies. You can buy millions of meme tokens for just US $1.
These coins often go mainstream even though they’re frequently created as jokes. Dogecoin, for example, had a huge spike in value in May 2021 before leveling off and is currently ranked tenth in market capitalization, according to CoinMarketCap. Regardless, their individual value is never very high—Dogecoin is presently worth about $0.15 per coin.
Retail investors will often jump on board and further boost the coin once it gets popular and spikes in value. Prominent online numbers and celebrities also drive up the fashionability of certain meme coins. Elon Musk is probably the best-known person in this, and there is also a Dogecoin fork based on the actual dog of the mask – the Floki dog.
How Are Meme Coins Different From Mainstream Cryptocurrencies?
Most people are familiar with Bitcoin, but it’s not the only cryptocurrency out there. While mainstream cryptocurrencies such as Bitcoin were created using special techniques to facilitate transactions in the crypto market, meme coins were created for specific uses and unique values.
Conclusion
Meme coins (sometimes spelt memecoins) are cryptocurrencies derived from internet memes or have other humorous qualities. These cryptocurrencies are based on specific memes like Dog Coins, celebrities like Coinye, and pump-and-dump schemes like BitConnect; they can be widely used to critique the entire cryptocurrency market.
The term is often derogatory when comparing the value or performance of these cryptocurrencies with those of mainstream currencies. On the other hand, proponents have observed that some meme coins have reached a large market capitalization.
