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What are the Top Meme Coins to Invest?

What Are Meme Coins?

Date: 21 Jun, 2022

Author: kevinhall

Meme coins are here to stay, regardless of whether you like them or not. The value of cryptocurrencies and their significance in the market continue to rise with each passing day. Even though it is likely that meme coins will never again be able to be disregarded, it is in your best interest to acquire a good start on the competition while there is still the opportunity to do so. There are a lot of meme coins now available in the market. However, it is essential to have the ability to recognize the best ones to support.

What Are Meme Coins?

Meme coins are a kind of cryptocurrency that are modelled after popular memes or jokes that circulate on the internet and other social media platforms. Dogecoin was the first cryptocurrency to be based on a meme (DOGE). DOGE was first released in 2013 as a spoof and took its cues from the famous Doge meme, which features a Japanese Shiba Inu dog. Read more about “what is bitcoin“?

The value of meme coins is notoriously unstable. They are mostly community-driven and have the potential to acquire momentum overnight thanks to the recommendations of online communities and the fear of missing out (FOMO). Traders’ interest might quickly shift to the next meme coin, which could cause an unanticipated drop in the price of these cryptocurrencies.

One such attribute of meme currencies is that they often have a massive or limitless supply of the currency. For instance, Shiba Inu (SHIB) has a total supply of one quadrillion tokens, yet Dogecoin (DOGE) has no maximum supply, and there are already over one hundred billion tokens in circulation. Because meme tokens, in general, do not have a mechanism for coin-burning, the vast supply explains why their values are so much lower than other digital currencies. You may purchase millions of meme tokens with only one dollar (USD).

Why Are Meme Coins Such a Hit with People?

Some people believe that during the COVID-19 epidemic, retail investors tried to hedge against inflation, which contributed to the growth of the cryptocurrency market. However, it is difficult to establish precise explanations for this phenomenon. In the middle of all the buzz, meme coins also flourished, expanding not just in market size but also in diversity.

It was after the “meme stock” saga of GameStop (GME) and AMC Entertainment (AMC) in late 2020 that everything got started. During that time, the Reddit community drove up the value of these shares to as much as 100 times in only a few months. A group of users on Reddit made a joke in January 2021 about artificially inflating the price of Dogecoin to produce a cryptocurrency that is comparable to GME. The tendency became widespread, and the effect of Tesla CEO Elon Musk’s tweets contributed significantly to the price increase of DOGE. A surge of more than 2,000 percent in only five days sent the price of a dogecoin token to a new all-time high of $0.73 USD.

However, Elon Musk made a public joke about Dogecoin (DOGE) on television in May of 2021, and many people believe that this was the reason of the subsequent price collapse. After that, several traders shifted their attention to other meme currencies available on the market, such as SHIB, sometimes known as the “Dogecoin killer.” At the same time, retail investors were acting out of fear of missing out (FOMO) and investing in meme coins in the hope of becoming millionaires overnight, which sparked yet another boom in meme coin prices.

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The fact that meme coins often only cost a few cents or even a fraction of a penny to purchase is another reason why ordinary investors find them to be interesting investments. In a purely economic sense, the cheap price does not signify very much since there is an abundant supply of these coins. However, possessing millions of a certain meme currency feels quite different than holding a little portion of ether or bitcoin. With only a few dollars, traders can acquire hundreds, millions, or even billions of DOGE, SHIB, or Akita Inu (AKITA) tokens. The fervour around meme coins is being fuelled in part by the feelings of their own communities, in addition to the possible rewards. As was noted, meme coins are derived from well-known Internet memes; they are meant to be humorous and may sometimes be seen as an “inside joke” for a group. When you buy meme coins, you are effectively demonstrating your support for the specific meme community. 

Following the drama that unfolded on the GME stock market, meme coin traders, began a “David vs. Goliath” struggle in which they bet against the mainstream cryptocurrencies. As a result, there was an abundance of community-driven meme currencies on the cryptocurrency market in 2021.

Downsides Associated with Purchasing Meme Coins as An Investment:

It’s possible that meme coins will have exponential growth in 2021, but trading and investing in meme coins comes with a significant level of financial risk, just like any other cryptocurrency.

To begin with, the tokenomics underlying meme coins may give rise to some cause for worry. Take the digital currency Bitcoin, as an example. It has its own blockchain, a whitepaper that is well stated, an ecosystem that is already created, and a deflationary nature. In recent years, we have also seen an increase in the number of institutions that have adopted bitcoin. When compared to BTC, most meme currencies have a propensity toward inflation and do not have a fixed supply cap. 

The environment, use cases, and basics of these projects are often characterized by the community’s shared sense of humour. The technology that underpins the main cryptocurrencies was only used to create a handful of meme coins. For instance, the underlying technology behind DOGE was borrowed from Litecoin (LTC), while SHIB was based on the blockchain that Ethereum uses.

Meme coins, on the other hand, are significantly influenced by their communities and tend to be more speculative than cryptocurrencies with bigger market capitalizations. This presents a potential danger. Because of this volatility, there are often unexpected pump and dump cycles. Meme coins, in general, have a brief lifespan during their existence. Their values might suddenly skyrocket by thousands of times due to celebrity endorsements or fear of missing out (FOMO), or they can abruptly plummet as the community moves on to the next meme coin.

You should be aware that there may be projects that are taking advantage of the enthusiasm in the meme coin market to defraud investors since the market for meme coins continues to expand. For instance, after only one week, the value of Squid Game (SQUID), a meme currency that was inspired by the successful Netflix program of the same name, increased by more than 86,000%. Nevertheless, the development team pulled the rug out from under everyone unexpectedly, which resulted in a 99% decrease in pricing. The situation was made more worse by the fact that holders were not permitted to sell any of their SQUID tokens. Because of this, you should never engage in trading or investing in meme coins without first practicing extreme caution and doing your own research.

Popular Meme Coins:

Dogecoin (DOGE) and Shiba Inu have the biggest market valuations among all meme coins, making them the market leaders. A great number of dog-themed meme coins invaded the market after the breakthrough of DOGE and SHIB, and they gained momentum towards the latter part of 2021.

DOGECOIN:

Two software programmers came up with the idea for the cryptocurrency known as DOGE in 2013. It was conceived as a joke cryptocurrency with the goal of drawing attention from the public, and it got its name from a meme depicting a Shiba Inu dog. DOGE is a cryptocurrency that originated as a fork of Litecoin (LTC). It utilizes the same Proof of Work (POW) process, and its supply is not capped.

SHIBA INU:

DOGE is the competitor of Shiba Inus, which is why DOGEcoin is often referred to as the “Dogecoin killer.” Another inspiration for the name SHIB is a Japanese dog breed. It was developed in August of 2020 by an unknown programmer who went by the moniker Ryoshi. The most notable distinction between DOGE and SHIB is that the latter has a fixed quantity of one quadrillion tokens, of which fifty percent have been destroyed and given to charitable organizations. DOGE does not have this restriction. A decentralized exchange, an NFT art incubator, NFTs, and an NFT game are also part of the SHIB ecosystem.

DOGELON MARS:

In order of popularity, Dogelon Mars comes in second place only behind the doggie pair. Elon Musk, CEO of Tesla, is the inspiration for the naming of ELON, which honours Musk’s dedication to the success of his other firm, SpaceX. ELON is a fork of Dogecoin and has a total amount of 557 trillion tokens in circulation now. Since the very first public offering in April 2021, ELON has had a price increase of more than 3,780% as of November 2021.

SAFEMOON:

SafeMoon is yet another newly introduced meme crypto currency that made a profit off the surge (SAFEMOON).  Long-term holders are rewarded by SAFEMOON by the imposition of a 10% exit charge on individuals who sell their tokens. Of this fee, 50% will be redistributed to those who already own SAFEMOON, while the other 50% will be burned. After its meteoric rise in April, it piqued the interest of individual investors who invest their own money. As of the month of November 2021, SAFEMOON had a return on investment (ROI) of 9418.54%.

The Bottom Line:

Consider that, in comparison to other digital currencies, meme coins have very high levels of volatility. Trading or investing in cryptocurrencies comes with a significant amount of inherent risk. Because meme currencies are driven mostly by their communities and have the potential to fall abruptly, you should never invest more money than you can afford to give up. Read more about best crypto to buy now.

By kevinhall

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