The popularity of meme coins increased dramatically as a series of meme coin projects heated up a few hundred to several thousand percent in just a few days. What is a meme coin? Many Meme coins such as Dogecoin, Shiba Inu, and PepeCoin have become projects that many investors are interested in on social networks and ushered in the Meme coin investment wave. Let’s learn about what is a meme coin and what investors should keep in mind when investing in a meme coin in the article below.
1. What is a meme coin?
Currently, although there is no official definition of meme coins, the term is often used to refer to cryptocurrencies inspired by images, events, or funny content popular on the internet. Unlike coins created from complex algorithms and rules such as Bitcoin and Ethereum, meme coins are often created for entertainment purposes and have no technical value or solve any problems in the blockchain market.
2. How did the meme coin create an investment craze?
Dogecoin was one of the first meme coins developed with the image of a Shiba dog, which appeared in many parodies on social media in the 2010s. 2021 can be considered one of the most “explosive” years for meme coins, Dogecoin and Shiba Inu are leading the meme coin niche, attracting the interest of many investors and skyrocketing in price and market capitalization. As of November 11, DOGE is up more than 2021,8% since the beginning of the year and is ranking 000th by market cap on CoinMarketCap. Meanwhile, Shiba Inu has grown by more than 9,60,000% since January.
Elon Musk, one of the most influential figures in the cryptocurrency market, posted a post on Twitter in July 7, helping Dogecoin increase in price and stimulating the development of follow-up cryptocurrencies, taking the names of related dogs such as Shiba, Floki, Akita, Husky and many others. Shiba Inu was released in August 2020 and once shockingly transferred half of the one quadrillion coins ($8 billion) to the founder of the Ethereum network.
3. Why does meme coin attract so many investors?
Myths about prices “look cheap”
Instead of you having to spend up to $28K to own 1 BTC coin, with Meme coin just spend $ 1, you can own thousands or even hundreds of thousands of tokens. Meme coins often have extremely low prices, with “a lot of zeros behind commas” that many people often mistakenly think the price of the coin “seems cheap” without even knowing that the capitalization of the project is too high for the market.
This reason comes from the fact that Meme coins are cryptocurrencies with a huge or infinite supply of tokens. For example, Shiba Inu (SHIB) has a total token supply of up to 1 quadrillion tokens, while DOGE has no maximum supply and already has over 100 billion tokens in circulation. However, since meme coins don’t usually have a token burning mechanism, the huge supply of tokens makes their price relatively low.
Bullish prices despite the market
Currently, there are more than 300 meme coin projects on the market, with the majority taking names after animals such as dogs or cats. The meme coins that attract the attention of many investors largely come from the sudden increase in price just because of a famous quote, such as Elon Musk or Mark Cuban, when they share about meme coins on social media. Their tweets or posts can make a huge impact on the value of that meme coin.
A good example is Dogecoin, one of the most famous meme coins in the cryptocurrency community. Originally created in 2013 by Jackson Palmer and Billy Markus as a joke but quickly gained traction from the community. In 2021, Dogecoin officially became the focus of attention when billionaire Elon Musk frequently mentioned it on Twitter and in public statements. This has brought Dogecoin to the top with a market capitalization of up to 90 billion USD and once ranked in the top 5 capitalization rankings.
4. What are the risks of investing in meme coin?
Meme coins can promise huge returns to investors in a short time but at the same time have many potential risks. Meme coin projects often lack transparency and trustworthiness, making it possible for investors to be scammed or lose money because the projects have no real value. In addition to this, memecoins often place an emphasis on the potential for rapid price appreciation instead of a long-term vision and sustainable development, leading to the risk of depreciation and sudden collapse.
Moreover, as mentioned, only a small number of meme coin projects have been developed next and have practical applications. For example, Dogecoin is used to pay for some services; Shiba Inu issues NFTs and several new tokens in the ecosystem; Rici releases NFT games using Rici coin, applying VR to the game,…
However, the number of such meme coins is not many. With the explosion of the meme coin market, choosing the right and reliable project has become even more difficult. In addition, meme coins can also be easily manipulated by some large individuals or institutions, causing sudden and unsatisfactory price fluctuations for investors.
5. Which meme coin will explode in 2024?
Currently, there are many meme coins that are attracting the interest of investors and users in the cryptocurrency community. Here are some of the meme coins that are gaining interest in the market:
- Dogecoin (DOGE): This is the best known meme coin on the market, created in 2013. Dogecoin was originally born with the idea of being a joke, but has since become a popular cryptocurrency with a large price and cap. Check Out the Latest Prices, Charts, and Data of DOGE/USDT
- Shiba Inu (SHIB): This is a new cryptocurrency released in 2020. Shiba Inu is based on the Ethereum platform and is seen as China’s version of Dogecoin. Check Out the Latest Prices, Charts, and Data of SHIB/USDT
- SafeMoon (SAFEMOON): This is a new cryptocurrency released in 2021. SafeMoon is considered a safe and secure cryptocurrency, developed on the Binance Smart Chain platform.
- Akita Inu (AKITA): This is a new cryptocurrency launched in 2021, also developed based on the Ethereum platform. The Akita Inu is seen as a version of the Shiba Inu and the Japanese Dogecoin.
- Pepe Coin (PEPE): It is a meme coin built on the Ethereum (ERC-20) blockchain and launched in 2023. The coin is named after the image of Pepe the Frog, a popular Internet symbol used in the meme community. With its token deflation mechanism, community-focused model, Pepe Coin is attracting special attention of investors and becoming an emerging meme coin with the ambition to replace Dogecoin and Shina Inu. Check Out the Latest Prices, Charts, and Data of PEPE/USDT
6. Conclusions
Investing in Meme coins is a risky decision and is not recommended for investors who do not have experience and knowledge of the cryptocurrency market. While meme coins can rise in price suddenly, they can also drop sharply afterwards and have no real business or value behind them. In addition, the meme coin market is growing rapidly and there are many fraudulent and untrustworthy projects, so investors need to be careful and evaluate carefully before making investment decisions.
If you decide to invest in meme coins, weigh the risks and only invest the amount you can afford to lose. It is advisable to thoroughly research the project, developer, potential and growth opportunities before making a decision. Moreover, you should always stay informed and keep a close eye on the market to adjust your investment decisions when necessary.
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