The word "meme" means a funny image, video, or piece of text that is usually copied, changed, customized, and then quickly spread by Internet users. What about "Meme coins" word combinations? It doesn't differ too much – let us define it more in detail below!
We remind you, as usual, that cryptocurrencies, even Memes, in any case, do not cease to be a risky and volatile instrument. Remember the golden rule of investments: do not invest more than 5% of your available income in volatile and risky assets.
What are Meme Coins?
Meme Coins or memecoins are cryptocurrencies inspired by Internet jokes and memes.
As a joke, some Mem Coins have gone up in price on the high and popularity online. Not only that, they got multi-billion dollar profits and even celebrity support!
You think that means the value and importance of these coins, but almost all Meme Coins have no meaning, utility, or value. It is essential to understand that we first talk about the material or fundamental appreciation.
Instead of using Meme Coins as investment tools, crypto investors are more likely to buy them to be part of a particular community or party. Or, if they have any extra money, they buy it for fun. Simultaneously, the most popular target for meme coins is pure speculation.
In the case of Meme Coins, it must be understood that they are designed precisely according to the same scheme as Bitcoin or Litecoin. The only difference is that Meme Coins exist to viruses, hone in, and speculate. The value will depend only on how strong the impulse is for a viral reaction.
When has this all started?
It all started with the big bang...just kidding. All Meme Coins began with one, the first and only Dogecoin or DOGE. The DOGE coin was based on a popular meme: a dog of the Shiba Inu breed with the postscript "doge."
Software engineers Billy Markus and Jackson Palmer decided to ridicule other altcoins in 2013 and created Dogecoin. In their understanding, altcoins challenge the dominance of Bitcoin, which is simply impossible. In addition, they wanted to make fun of BTC, to make crypto in general a joke.
However, this joke became a reality and gave birth to other Meme Coins to appear. At the same time, Dogecoin began to increase its popularity due to the genuine community of users, who gave this coin cult status. The media only helped them with hype and influence growing.
The biggest coin shot was associated with Tesla and Elon Musk. We wrote about this case here. You can refresh your memory and plunge into the relationship history of the founder of SpaceX and crypto. Elon continuously promoted Dogecoin and boosted Dogecoin to a market cap of $88 billion in May 2021, making it a real pop culture phenomenon.
How do the Meme Coins usually grow:
- The coin is created, and some attentive investors decide to buy them for the joke;
- With each interested investor, the price grows, so the coin starts to be quite attractive and influential among everyday investors;
- Celebrities see the hype, buy the coin and start to post this information somewhere over their socials;
- This attracts even more crypto investors, raises the coin lovers' community, and increases the price.
What are the most popular Meme Coins besides Dogecoin?
- Shiba Inu or SHIB
This Meme Coin was created in April 2021 and immediately began to grow. SHIB reminds many traders of DOGE because it wants to make the same popular route (note the breed's the same!), and, of course, it uses social media to create a loyal community of dog-altcoins-lovers. The plan worked, and the market capitalization of SHIB almost beat the one of Dogecoin. Not bad!
- Dogelon Mars or Elon
This is another Meme Coin for dog lovers because it was inspired by Elon Musk, who loves DOGE and the cryptocurrency market. The reason for the name consists of Musk's tweets about sending Dogecoin to the Moon. The inventive creators decided to make his dream come true and brought it all together: Dogecoin +Elon Musk + Mars = Dogelon Mars!
- Samoyedcoin or SAMO
You may think this coin is also about dogs…but no. The creators were inspired by many things and combined and mixed them: Dogecoin + Sam Bankman-Fried + Anatoly Yakovenko. Samoyedcoin! The first man is the CEO of FTX Exchange and, currently, the wealthiest man in crypto. Anatoly Yakovenko is the Co-founder of the Solana blockchain.
- MonaCoin or MONA
Monacoin is a curious Meme Coin to be. It was launched in 2014, as Dogecoin was, but in Japan. There is a Japanese online message board created by someone called Mr. Watanabe. Since 2014, MONA hasn't had any hype. However, it claims to be Japan's first native cryptocurrency. Thus, it's trendy throughout the country and has a tremendous and stable-growing online community, mainly in Japan.
Why are Meme Coins popular?
Volatility as an advantage
Yes, Meme Coins are very volatile because their primary basis is hype and popularity. Some say these coin types are even more volatile than the leading cryptocurrency – Bitcoin! The price of a Meme Coin can rise to 1000% only per week, and hundreds of percentages can appear in just one or a couple of days.
All the above means that the rewards can be even more massive than the risks. This attracts cryptocurrency-profit-diggers.
Meme Coins can be profitable because they have long-term growth. As was said before, Dogecoin gave its owners more than 1600% of its profit last year. Still, Shiba Inu let one guy increase his funds from $8,000 in 2020 to $5,7 billion in 2021 by being in the wallet. Nice shot!
Some investors invest in memes because of some mania provided by the Internet. Every time they visit Twitter, Reddit, or other social media, they see different hyped coins, try to buy them, become sad when the price goes low, and get depressed. It could lead to harmful consequences, but at the same time is a very getting in thing.
Is it worth investing in Meme Coins?
The more you read, the more you understand that Shiba Inu or Dogelon Mars are the coins that will only bring you a short satisfaction and relation to a particular community. Yes, you can get profit from Meme Coins, but simultaneously, they may become your absolute nightmare if the price goes down.
There aren't so many Meme Coins you really can rely on. For every Dogecoin, another Meme Coin is not as successful and leaves its investors heavily underwater. Even DOGE and SHIB fell to 91% and 84%, respectively.
Also, remember volatility and another thing – a small group of people, often holds many Meme Coins with a large concentration of coins. IntotheBlock, for example, says that about 48% of DOGE are in control of only seven crypto wallets, but 69% of SHIB – are in 15 wallets. This means that large investors can manipulate the market with this strong position or change the price of the coin by only cashing out the holdings.
The FOMO, or the "fear of missing out," plays a significant role and provides the total media hysteria about the Meme Coins. Thus, when you buy the coin, also be ready to sell it as soon as the media coverage diminishes. Or opposite.
There are no advisors here – you decide whether to risk or not, but remember, only 5% of your income can be spent on risky assets.
Where to buy Meme Coins or another cryptocurrency if needed?
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Join Wisebitcoin and be up-to-date with worldwide events and their affection for the cryptocurrency market! We hope to become a great partner in your crypto journey! And also, read Wisebitcoin. We have a lot of great and exciting blogs there.