Hello readers. Today in this article we will be discussing about Meme coins and know more about them. We will also learn about how they are originated and are they investable or not. We all might have heard of the term called as Memes right. Memes can be funny jokes, images and videos that go viral. Similarly there are crypto coins based on memes. We will talk about them in detail below.
What are Meme Coins?
As discussed above, meme coins are the crypto coins which are based on some memes. Some memes go viral and gets popular among the people which are shared through social media. For example there is a Dog which got viral through the memes as you can see on the above image.
This dog got so much viral that the crypto currency named as Dogecoin was made using it. One thing to note here is that these meme coins are purely based on the popularity and the hype of that coin increases or decreases its value.
Most of the meme coins were launched only as a fun with no clear use case, but now they have started to add use case so they can survive for long term. We will talk more about it below.
What does Meme Coin works?
1. As we discussed that Meme coins are the crypto currencies which are made based on memes. It means that their name could be related to meme but they are also a cryptocurrency, it means that they can be traded in the market and works on blockchain.
2. Meme coins are usually based on hypes, and when the hype if high, there could be tremendous increase in their prices but they can dump very fast soon, so they are very risky and volatile and it is suggested not to invest in them as they have no clear use case and often used as pump and dump scheme..
3. Generally meme coins have higher supply than other cryptocurrencies, for example if we look at Bitcoin, there are limited coins, but if we look at meme coins, there are can be millions and billions of coins in circulations, due to which the price if these meme coins stays very low, in cents.
4. Also, the market capitalization of meme coins in generally low as compared to other major cryptocurrencies like ETH or Bitcoin which have the riskiness that meme coins can be pumped and dumped easily.
Also read – Understanding NFT in detail?
Crypto Coins based on Memes
Now let’s discuss about the crypto coins that are based on memes. There are several coins that are based on Memes and will will talk about the major ones that are popular and hypes in the market.
1. Dogecoin (DOGE)
Now the first Meme coin and the most popular meme coin on the market is Dogecoin. Dogecoin is inspired from the popular Shiba inu variety of Dog that we have seen so many times in social media. It was created in 2013 making it the first meme coin and one of the oldest one. Dogecoin was founded by Billy markus and Jackson Palmer.
It was created as a joke and parody to make fun of cryptocurrency and now currently stand at the market rank of #8 in all the cryptocurrencies which is an astonishing thing. The current price of Dogecoin is $0.08. World’s richest man Elon musk love Dogecoin and currently Twitter logo for desktop version is also set as a Dogecoin picture by him.
2. Shiba Inu Coin (SHIB)
Next crypto coin based on the meme is Shiba Inu Coin. It became quite popular after Dogecoin. Shiba Inu is inspired from the Dog breed of Shiba Inu. Shiba Inu or SHIB Coin was created in August, 2020. After Dogecoin got so much popular so Shiba Inu coin was made to give competition to Dogecoin and it gained a lot of popularity and significant increase in the price was also seen when it was listed on major crypto exchanges like Binance and coinbase.
It was all over the internet. Although it has been coming up with use cases but it was launched just like Dogecoin and based on memes and Dogs. The current price of Shiba Inu is $0.00001086.
3. Floki Inu (FLOKI)
After 1 year from the creation of Shiba Inu, Floki Inu coin was created in 2021. Again Floki inu is inspired from Vikings character Floki but some say that it was also named after the Shiba Inu variety of dog of Elon musk which was also named a Floki. Whn Elon musk tweets anything related to his pet Floki, Floki inu coin price would increase. At the end of the day it is also a meme coin with no clear use case. Although they say it was created to support environmental causes and renewable energy.
The current price of Floki inu coin is $0.00003406.
4. Safemoon (SAFEMOON)
This coin was quite in trend in 2021, but lost its value overtime. Safemoon was created to encourage users to invest for long term to avoid volatility and market manipulation. They charged fee and redistribuuted it if the users keep holding the tokens for long term.
The current price of Safemoon is $0.000000006406 .
These were the major Crypto coin which were based on memes. Although there are other also like Elongate etc.
Are Meme Coins Investable?
Generally people use meme coins to make quick profits. These are the coins which are based on hypes. If we look into Dogecoin, when the hype was created in 2020 and Elon musk started tweeting about it, the coin gained its value by multiple percentage and lot of users used it to make quick profits. Similarly with Shiba inu and other meme coins. If you want to invest in the cryptocurrency for long term, meme coins should not be considered.
If you look into them, they are down by 80-90%. So you can use them when the hype is high to make quick bucks but not recommend for long.
Conclusion
Meme coins became quite popular in 2020 and still these are quite popular. Dogecoin was one of the first meme coin that went popular and Elon Musk was the one that made it so much popular and he endorsed it. Mane meme coins were made afterwards like Shiba inu, Floki inu, Elongate etc.
Most of these meme coins do not have any clear use case so it is not recommended to invest in them for long period. Although many people use them for making quick profits. If you look into any meme coin chart today, you will find that they have lost 80-90% of their value from their all time high.
This was it for the meme coins. Hope you enjoyed reading. Please check more articles on The Finance Daddy to gain more knowledge.
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