What Are Meme Coins?

What Are Meme Coins?

By SimpleHold | simplehold | 15 Jan 2022


Memecoins are barking louder and louder day by day. Why barking? Just because almost all more or less successful meme coins are inspired by different dog breeds. But of course not only by them, are you eager to learn more? Let’s get it started then! 

 

When and why did meme coins appear? 

So, the first meme coin was launched to the crypto galaxy in 2013, as an ironic joke, but something went wrong. Its name is Dogecoin (DOGE), and it was inspired by a popular meme depicting a Shiba Inu dog with quite a surprised facial expression. Two software engineers, Billy Markus and Jackson Palmer, minted the coin because they decided to make an alternative to Bitcoin (BTC) to spread worldwide and reach more people. In several days the coin jumped up about 300% in value and exploded the network, it became truly viral. Thanks to Elon Musk’s interest in the altcoin, other celebrities joined the wave, among them were such musicians as Snoop Dogg and Gene Simmons. Sometimes Musk’s word decided the price of the coin, for example, his tweet — “One Word: Doge” made it rise to 20%, so it’s highly volatile. 

The coin inspired others to create new meme coins, and now we have a great variety of different coins overwhelmed the market — Shiba Inu (SHIB), Dogelone Mars (ELON), SafeMoon (SAFEMOON), Kishu Inu (KISHU), CumRocket (CUMMIES), Dogelon Mars (ELON), Samoyedcoin (SAMO), Babe Doge (BabyDoge), and many others. These community-driven tokens are quite unstable because they’re far too much tied to people, and above all, they have a huge and unlimited supply like one quadrillion of SHIB coins is not a joke or another meme. That wouldn’t be so crucial if meme tokens had a coin-burning mechanism, but they don’t have one. 

 

What’s the difference between a meme coin and usual crypto? 

The utility is the answer. Once traditional cryptocurrencies aimed to solve some real financial issues, allowing us to have decentralized platforms and level us up in terms of having business and managing our funds without centralized authorities, meme coins mainly were created as a reaction to usual crypto, and they don’t have serious goals whatsoever, although they can bring some profit in a short period of time. 

 

Top 5 meme coins

(at the time of writing)

dd2617eb90d60b7cdf7e480263fa82e38fefc3f7a2370168ff7342756d338548.jpg

  • Dogecoin (DOGE)

It appeared in the crypto world in 2013 as a joke, but it’s not only that anymore. DOGE is on the top of the charts and extremely popular among investors and traders. Elon Musk and his tweets made it really popular. On the one hand, day trading, a huge fan community, and its involvement in various charity programs make it profitable for investing. On the other hand, it has an infinite supply and a lack of innovation. It’s just a highly volatile transactional currency. 

  • Shiba Inu (SHIB)

That’s another top-rated meme coin, also known as “Dogecoin Killer”. It was launched in 2020 by an anonymous developer, and the token runs on the Ethereum blockchain. The token has a huge, loyal community and works on its own platform called ShibaSwap that allows users to get returns. On the contrary, it’s highly volatile and doesn’t have real-world utility. They have their own NFT market and an NFT game, too. 

  • Dogelone Mars (ELON) 

Everybody knows that Musk is particularly interested in meme coins and likes commenting on them on his Twitter account or once giving interviews. There is no surprise that the coin is named after Tesla’s CEO Elon Musk and his company SpaceX. It’s an Ethereum-based altcoin that hugely surged since the time it had turned up on the horizon. 

  • Samoyedcoin (SAMO)

The coin runs on a Solana blockchain, and it’s on the top, according to the CoinMarketCap. Its price is roughly increasing and getting something more than just another meme coin thanks to an extensive supporting community, burning events, and airdrop tools. 

  • Baby Doge (BabyDoge)

They say, it has potential, and that’s maybe because it was created by the Dogecoin community or because it’s pre-mined, which means its supply isn’t infinite that promises us that the coin will be more or less stable and reliable over time. Mind that it’s not a currency but a coin to invest and wait till its value increases. 

 

Wrapping it up

Meme coins are skyrocketing at the moment, but that’s quite a sporadic move. Sometimes people take it that seriously and call some tokens second Bitcoin, at least they do with a Shiba Inu coin, but that’s hardly true. Meme coins are speculative, so investing in them is a question of luck, as they are still young and unpredictable. 

Be always aware of potential risks involved once investing in meme coins, and do thorough research before making final decisions. There is a real possibility to gain money with those coins, but you should be into crypto and know the market well. 

Anyway, the existing of such coins proves once again that decentralization matters, and people can influence the market and set particular trends. Even a joke could become a coin that costs millions and has its own investors and traders who make real money.  

How do you rate this article?


35

2

SimpleHold
SimpleHold

Light wallet for #Bitcoin, #Ethereum and many other assets. Simple way to manage your crypto. simplehold.io


simplehold
simplehold

Light wallet for #Bitcoin, #Ethereum and many other assets. Simple way to manage your crypto. simplehold.io

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.