Crypto, being a highly volatile asset, opens doors to limitless possibilities. People get a scope to carry out financial transactions with greater transparency and without the need for a guarantor. Every day a new currency is launched, offering a host of features, making this platform more appealing to users. When we talk about new and unique currency, we cannot miss the name of dogecoin, as this meme coin generated much hype in the crypto market.
Dogecoin falls part of the meme coin category, and here in this blog, I will elucidate on the concept of meme coin and its relevance in crypto.
What are Meme Coins?
Meme coins refer to cryptocurrencies inspired by a meme which is viral online. At times, some meme coins themselves turn viral either due to an internet joke or celebrity endorsements. You must all be aware of dogecoin and the way it positioned itself among the top cryptocurrencies. This coin’s popularity is directly linked to Elon Musk’s constant support.
Generally, a meme coin rises in popularity not only because of a celebrity’s association but rather when a crowd shows extensive interest and support, these coins are sold at high prices.
Well, you need to understand an essential fact about meme coins, which is that compared to other cryptocurrencies, meme coins lack usability. Therefore, the crypto community often treats this coin as a joke and not as lucrative assets.
A Brief Explanation Of Meme Coin’s Characteristics
If you often get confused when differentiating between an ordinary cryptocurrency and a meme coin, look for the below-mentioned characteristics.
- Traded on Decentralized exchanges like Uniswap
Mostly you can trade meme coins on DEXs, but it’s not always the case. The reason why you won’t find them on centralized platforms is due to the regulatory norms; furthermore, no CEXs are ready to list meme coins or tokens.
- Hype on social media channels
Meme coins have their inception in social media because this coin’s community make them viral on social media. For example, dogecoin’s popularity is owed to sharing on Twitter, Facebook and other social media channels.
- Meme coins are viral
The concept of this type of coin is often associated with a meme. You can say virality is a hallmark of meme coins. A prime reason for meme coin’s excessive popularity is that communities and individuals share memes, as happened in the case of Shiba Inu and dogecoin.
A quick glance at different types of meme coins
No matter how volatile and fewer use cases these coins have, some meme coins broke stereotypes and made it to the wish list of the crypto community. Check out the list.
- Shiba Inu
Following the footsteps of DOGE, Shiba Inu succeeded in taking over the list of top cryptocurrencies, ranking as the second meme coin after dogecoin. Created on the same blockchain as DOGE, the coin possesses immense potential because of the ongoing development processes. This is the reason why the SHIB is promoted as a dogecoin killer.
When we talk about meme coins, dogecoin’s name entraps our mind automatically. Since its launch in 2013 as a satire to the growing interest of people in cryptocurrency, it has appeared on the wish list of investors. It won’t be wrong to say that the coin owes its popularity to Elon Musk’s tweets.
- Volt Inu
Volt Inu, created by anonymous developers, is a hyper-deflationary coin. Primarily the coin was developed with an objective to invest in multiple assets like altcoins, NFTs, farming and staking in stablecoins. By being hyper-deflationary, $VOLT will enable investors to make profits on their treasury investments, which can then be used to buy back and burn $VOLT tokens.
Developed by Mr Watanabe, MonaCoin is another popular meme coin that is based on cat memes. Similar to DOGE, it was also launched in January 2014 and had its origination in Japan. MonaCoin’s credibility and popularity lie in the fact that Japan uses it as a trade unit. The native coin MONA has gained approval from the Japanese Financial Service Agency.
Reasons to invest in meme coins
When we try undermining the possible reasons behind investing in meme coins, the mindset of the investor matters. To some crypto enthusiasts, they possess value because of the message that a coin offers. In contrast, for a few others, these coins prove legitimate investment assets. As far as market analysts’ opinion, the latter reason is more valid looking at the growing popularity of these meme-based coins or tokens.
Like any cryptocurrencies, meme coins can be highly volatile. So, make sure to conduct thorough research on the price history of a meme coin before investing. Remember, never invest more than you can afford to lose.
While the meme coins may not reach the heights of Bitcoin or Ethereum, their presence in the industry indicates how a seemingly jovial asset can become a serious investment option if it receives enough hype.