What are Meme Coins?
Encouraged by Internet memes and actual affairs, influencers actively promote the best meme coins that will explode. Therefore, they’ve quickly gained fame.
Some consider holdings in meme crypto coins insane, while others see them as an opportunity to get rich quickly, making a profit of up to 1000% of investments. It’s difficult to say which of them is upright, but interest in meme coins has reached unprecedented heights.
What’s the reason for meme coin popularity? Is it worth investing in meme crypto coins? And what’re the chances of getting rich on such investments? Let’s figure it out teamwise!
What’s a meme coin?
To realize what a meme coin is, you first need to comprehend what a meme is. It’s a funny or exciting unit of meaningful information, such as a picture with a caption or video, or a whole group of units, widely shared on the Internet, mainly through social networks. Simply put, a meme is a joke on the Internet. Thus, a meme coin is a digital currency based on a specific joke (meme). Usually, people who don’t know much about them wonder how to find new meme coins, but the answer is always obvious – on cryptocurrency exchanges.
The meme coin tends to be more volatile in comparison with head cryptocurrencies such as BTC and ETH. It’s because meme coin largely depends on public opinion: social networks and moods in the online community influence the price. There’s usually a lot of noise around such coins, but particular concerns and financial risks are associated with them too. Even though many traders have got wealthy on meme coins, many people have lost their savings because of market volatility.
What’s the difference between cryptocurrency and meme coins?
All cryptocurrencies rely on their user communities and the influencers’ support. However, meme coins have gained popularity due to strong associations with influential people like Elon Musk. All it takes for a Tesla CEO to tweet any topic is for the token price based on that topic to skyrocket.
In January 2021, a group of Reddit users decided to jokingly raise the value of the DOGE asset in order to create a GME crypto equivalent. The trend caught on, and coupled with Elon Musk’s tweets’ impact, the price of Dogecoin rose.
Meantime the creators of meme coins are trying their best to get into the news roundup to increase the price of tokens. So, the creators of Shiba Inu decided to give half of all SHIB tokens to the Ethereum co-founder. However, he ruined their plans by destroying most of the received tokens (and promising to donate the rest to charity), after which he publicly appealed to all crypto developers, asking them not to transfer tokens to him without his consent. He ended the address with the following words: “I don’t want to be the locus of power of this kind.”
The meme token economy is suffering due to the collapse of the cryptocurrency market. The crypto market capitalization in January 2022 decreased from $2.2 trillion to $1.7 trillion. Experts were quick to call this a new crypto winter. The decline isn’t only due to the overheating of the cryptocurrency industry but also to the stock market fall, which reacted negatively to government plans to reduce support for economies after Covid-19.
Why are meme coins so famous?
Meme crypto coins, which aren’t created as a means of payment but simply for the sake of a joke, are often taken seriously by investors and become a great success.
Using these cases and the general love of memes, fraudsters can create scam projects to defraud the crypto community. In fact, there’re several dozen tokens in honor of different breeds of dogs: Husky, Australian Shepherd, Samoyed, and so on. What’s interesting is that many of them were listed on major crypto exchanges, that is, they seriously believed in their investment opportunities.
Elon Musk’s tweet again affected the value of cryptocurrencies: after the billionaire posted a photo of his dog, the price of the Shiba Floki token increased by hundreds of percent.
Interest in such tokens grows during periods of stagnation and calm in the sector of greater and more stable cryptocurrencies, such as bitcoin. The world’s first cryptocurrency gradually grew in price and became less subject to volatility over time. However, traders wanted to trade more actively and get more fast income. Meme crypto coins provide an opportunity to enjoy risky trading, the pleasure of such trading is in many ways similar to gambling or a roller coaster, and it’s definitely entertainment for an amateur.
In addition to the potential profit, community sentiment drives the hype around meme coins. As already referred to, the meme coin was inspired by famous Internet memes and was intended as a joke for insiders. Buying meme coins in some way demonstrates your maintenance for a particular society. Thus, the cryptocurrency market in 2021 was flooded with meme coins that were popularized by the community. At the beginning of 2022, over 80 meme coins were available on specialized exchanges. They’re like an imitation of a coin with a famous dog.
Risks to investing in meme coins
Looking at the impressive growth rates of meme coins on Binance, one can decide that investing in one of them will make investors rich. However, it’s noteworthy to understand that to invest in meme coins is a lottery, not an investment. No one knows if a particular project will succeed. And if so, when it can happen, and how quickly the pump will end. If Elon Musk wants to pump some coins, their investors will be lucky. Whereas, if there’s no hype, there’ll be no fuel for the flight to the Moon. The r/CryptoCurrency community users use this phrase on Reddit. They’re buying up Dogecoin in a coordinated manner, seeking to send into space this cryptocurrency so that its value reaches one dollar.
If you didn’t enter at the minimum, then there’s a great chance of losing your investment. The price for such projects largely depends on the hype on social networks and the community support: when they end, the course falls.
If you want to try your luck in this lottery, then you should monitor the list of meme coins, look for new projects and invest insignificant amounts for yourself at the very start. If you’re lucky, the win will pay for itself, in case you choose the meme coins that will explode. And if the project doesn’t work, you won’t lose much. Just remember that even if you become a paper millionaire, it’s unlikely that you’ll be able to withdraw all the money due to limited liquidity.
Most popular meme coins examples
During the crypto winter, many investors picjoke the best meme coins to buy as one of the investment tools. When choosing, you should focus on the current market situation, and prospects and use several tokens in your investment portfolio. Below you’ll see the top meme coins in our opinion.
- Dogecoin (DOGE) is the first in the list of meme coins. Dogecoin is an actual crypto market discovery. This asset, which was originally created as a joke, has become a full-fledged digital currency, and its price indicates a consistent sharp increase. Dogecoin is something like a parody of a full-fledged cryptocurrency. The creators of Dogecoin are Jackson Palmer and Billy Markus. They decided to create their peer-to-peer crypto, which would be much more widespread and easily accessible. They were inspired by a meme about a Shiba Inu dog breed to attract the community attention. Of all the meme coins, Dogecoin is the most prevalent, and it’s one of the best meme coins to buy now. It has a market dominance of 2.76% and a market value of over $44 billion.
- One of the best meme coins to buy is Shiba Inu (SHIB). It’s a competitor to Dogecoin and is known as the Dogecoin killer. A Shiba Inu meme coin is an ERC-20 token on the Ethereum blockchain, named after Shiba Inu dogs. On the project official website, the tokens themselves are called Meme Coins. The project was launched in August 2020. The Shiba Inu founder, hiding under the nickname Ryoshi, chose the Ethereum blockchain for a reason. Ethereum is truly decentralized, secure, and well-established. According to the founder of Shiba, it’s Ethereum that allows you to create free decentralized communities.
- Floki Inu (FLOKI) is one of the newest meme coins, the ERC-20 token based on the Ethereum blockchain. Floki Inu is named after Elon Musk’s dog, Shiba Inu. However, the white paper states that this isn’t a meme but a movement. Since its inception, Floki Inu has shown consistent performance. As of December 2021, the market capitalization is $1.06 billion. It’s pretty impressive for a cryptocurrency that hasn’t even been around throughout the year. So, it’s also one of the best meme coins to invest in.
To sum up, it’s worth noting that despite the seeming meaninglessness of meme coins, the popularity and number of all kinds of coins don’t stop growing. First, this is due to the fact that platforms for creating such a currency get available to everyone.
The meme coins are often perceived as a joke, but simultaneously, some depositors see the potential for earning in them. Such assets are capable of creating huge waves in the crypto market, and many people have actually made a tangible return on such investments.
Despite all the hazards of investing in meme crypto coins, we believe this sector will expand – users like this game. After all, the money people can make on them is definitely not like simple jokes.