The meteoric growth in meme coins in the crypto world is unparalleled. Why are these tokens so popular in 2021?
Memes are proliferating across the internet. These memes have been transformed into cryptocurrency, and people are willing to invest in them! In this post we’ll explore the history of meme tokens, the most popular meme cryptocurrencies available, and where you can get your hands on them.
Meme coins are cryptocurrencies that were inspired by popular social media memes, jokes and current events. Dogecoin, the original and most popular cryptocurrency of this type, was founded in 2013. DOGE began as a joke, but is now a hugely popular cryptocurrency.
Meme cryptocurrencies have generally been dismissed as a mere farce. Some investors, however, think differently. Several meme tokens have done well in the cryptocurrency market, with many investors making considerable profit from them.
The sole difference between meme coins and “genuine” crypto alternatives like Bitcoin and Ethereum is their real-world use. Unlike Bitcoin and Ethereum, meme coins cannot be utilized in the real world, and provide no function or utility.
Meme coins have soared in value and range in 2021. Following the popularity of Dogecoin and the growing adoption of cryptocurrencies more broadly, the market for meme currencies is flourishing. The current prominence of meme coins is due in part to their association with celebrities and social media influencers. Celebrities are paid to promote the coins, and therefore public interest in them develops quickly. Many credit Elon Musk, who is a huge advocate for DOGE, with the surge in use of meme currencies.
Below are some of the most popular meme coins in the market.
Dogecoin, based on a meme of a Shiba Inu dog, is the most successful meme coin to date. It was founded in 2013 by two software developers and has attracted backing from high-profile figures such as Elon Musk and Snoop Dogg.
SafeMoon debuted in March of 2021. It is driven entirely by the community. SafeMoon has developed a unique mechanism that prohibits the sale of its native tokens.
Dubbing itself as the “Dogecoin killer,” Shiba Inu was launched in August 2020 as “an experiment in decentralized emergent building community.” SHIB and DOGE are unconnected, so make sure that you don’t get them confused.
MonaCoin, like Dogecoin, is based on a meme of an animal: this time a cat. The token has a 105 million maximum supply and has been certified by Japan’s Financial Service Agency.
HOGE blends crop farming with memes and plans to leverage ETH’s DeFi infrastructure to do so.
There is a slew of other cryptocurrency meme coins that we haven’t covered: Pepe Cash, Memecoin, Loser Coin, and Forge Finance to name just a few.
Buying meme coins works in the same way as buying any other cryptocurrency. The first step is to create an account on an exchange site and purchase coins using fiat currency (or trade them with other cryptocurrencies). Meme coins may be found on almost all of the major trading sites. If you live in the United Kingdom, you will soon be able to buy DOGE using Compass!
While meme coins have experienced exponential growth in 2021, trading and investing in these coins, like other cryptocurrencies, involves a significant level of risk.
To begin with, the tokenomics of meme currencies can be problematic. Let’s take Bitcoin as an example. Bitcoin has a deflationary character, a blockchain, a well-written whitepaper, and an established ecosystem. As such, we’ve seen greater institutional acceptance of Bitcoin in recent years. Most meme currencies however, unlike BTC, are inflationary and have no limit supply. Their environment, application cases, and basics are frequently established by the community’s collective humor. Only a handful of meme coins were created using significant cryptocurrency technologies. DOGE, for example, is based on the Litecoin (LTC) blockchain, whereas SHIB is based on the Ethereum blockchain.
Another concern is that meme coins are primarily community-driven and more speculative than cryptocurrencies with bigger market capitalizations. This volatility frequently results in unanticipated pump and dump situations. Meme coins have a rather brief life cycle. Their value might skyrocket due to celebrity endorsements or FOMO, but then plummet when the community decides to move on to the next meme currency.
As the market grows, you should stay alert to the potential for certain projects to try and take advantage of the enthusiasm for meme coins to defraud traders. For example, in just one week, Squid Game (SQUID), a meme currency based on the hit Netflix program of the same name, grew by over 86,000 percent. The development team then abruptly rug-pulled, causing the price to collapse by 99 percent. Worse still, holders were prohibited from selling their SQUID tokens. As a result, before trading or investing in meme coins, you should always be cautious and DYOR.
What may have begun as a joke is no longer funny. Meme currencies are increasing in value and appeal with entrepreneurs like Elon Musk jumping on the bandwagon. It’s entirely up to you whether you decide to jump on or not: just remember to keep all of the facts in mind.
Investing in cryptocurrencies carries a high level of risk. Because meme currencies are heavily influenced by the community and might fall at any time, you should never invest money you cannot afford to lose.