If you go to the term “meme” in the dictionary, It’s a joke-filled image or video or a piece of text copied with slight variations and quickly spread among internet users. Meme coins don’t differ much from the definition in this dictionary of a meme. They’re nothing other than cryptocurrencies that memes or internet jokes have influenced. Should you consider investing in meme-themed coins? Although some are top cryptos based on market capitalization, prospective buyers must know that most meme coins have no value, and some are blatantly fraudulent.
What is a Meme Coin?
Meme coins are digital currencies inspired by memes and other popular internet trends. Sometimesmeme, coins are popular and create a community of enthusiasts. If the community grows enough, there are enough interest, demand increases, and the currency can attain enough value to be bought and sold or traded through crypto exchanges, much like Bitcoin.
How Do Meme Coins Work?
The barriers to entry are shallow for memes.
The open-source nature of blockchain technology that underlies these cryptos allows creators to “fork” existing cryptos–essentially copying and pasting the blockchain’s underlying technology–and launch them online with only tweaking as simple as the logo and name.
“A meme coin is just a cryptocurrency so that they can be created easily with a few lines of code,” says Tauhid Zauman, an associate professor at the Yale School of Management. “The coin can create its blockchain or live on an existing blockchain.”
According to Zauman the meme coin is generally advertised by its creators through social media platforms to build hype and drive prices up. The price could continue to climb if the currency establishes a solid community.
In the wake of the bull market panic causing prices to go up across the globe, numerous meme-themed coins were developed to take advantage of the popularity.
Meme Coin: Dogecoin
The first and most well-known meme-related coin was Dogecoin (DOGE). The coin was invented in 2013 by two software engineering experts, Billy Markus and Jackson Palmer DOGE were created around a well-known meme: “doge.”
The creators claim they invented Dogecoin to make fun of Bitcoin (BTC). Its name “doge” is a deliberate misspelling of “dog,” and the founders admit that they picked this name to make sure the cryptocurrency is “as ridiculous as possible.” In what would eventually be a standard for another meme coin to come, Dogecoin began to make an impact through a passionate user base, gaining an almost cult following.
For instance, When the Jamaican Bobsleigh team was selected to compete in the 2014 Winter Olympics in Sochi, Russia; however, they could not pay for the trip, the Dogecoin community banded together to raise $30,000. This was to help the cause.
A major media outlet picked up this story, increasing the number of investors and influencers. However, it wasn’t until the celebrities began promoting Dogecoin’s services that the price skyrocketed. Dogecoin’s most prominent endorser has to be Tesla Chief Executive Officer Elon Musk.
The mysterious billionaire has constantly advocated for Dogecoin. Musk even was featured on a “Saturday Night Live” skit in which he addressed himself by “Dogefather.” At its height, Musk’s endorsement helped propel Dogecoin up to an initial market capitalization of $88 billion by May 2021. Cryptocurrency was a phenomenon in pop culture.
Meme Coins – Are They Worth an Investment?
Despite their absence of guidance, meme coins satisfy an entirely different kind of need. Investors are usually drawn to new ideas, and with or with no blueprints, such as Dogecoin and Shiba, it’s all about the fun. It’s like how there are goods available on Craigslist that Walmart cannot provide, regardless of whether they’re all beneficial. This is the small niche that meme coins are geared towards.
Another reason meme coins are so attractive is their ease of access or lack thereof. They are priced so low that the dream of owning a plethora of cryptocurrencies is now a reality for many. KuCoin is a trading platform that supports Dogecoin. The trading pairs supported are DOGE/USDT and DOGE/USDC.
The most exciting aspect is what meme coins could be due to a revolutionary breakthrough. Imagine having tens of thousands of coins; all they need to do is hit $1. In the beginning, Ethereum investors agreed with that; however, even in 2014, most were cautious. Any slight deviation from the general glorification of bitcoin was treated with cautiousness. Today, various crypto coins have succeeded in some way and provided traders with more options, which often result in bold decisions.
Cryptocurrencies move and frequently disappear as customers do in a busy store. They may remain; however, you must bet yourself that they’ll. At the moment investing in memes is similar to investing in entertainment. If you’re ready to take in the hype for a time and then forget about it the next time, these coins could be pretty enjoyable. They can be dug out if the circumstances alter. You never know, you could be rewarded with a huge surprise.