Meme Tokens: What, Why and How?
Meme coins are digital currencies based on Internet and social media jokes (i.e., memes). Dogecoin, the first and most widely used of these cryptocurrencies, was founded in 2013. DOGE was initially intended as a spoof, but it has now grown into a popular cryptocurrency.
These crypto-options are often dismissed as a prank. Many investors, on the other hand, feel that investors should not be handled in this manner. In the cryptocurrency world, many of these meme tokens have done well, and some individuals have earned a lot of money with them so far.
Aside from the fact that the latter was developed to address real-world issues, there is no difference between meme coins and "legitimate" crypto alternatives like Bitcoin and Ethereum. Unlike meme currencies, which presently serve no use, meme coins will serve no future purpose.
Brief History of Meme Tokens
Dogecoin is the first of these meme currencies (DOGE). Billy Markus and Jackson Palmer launched it as a prank on the internet. Cryptoverse veterans often advise newcomers to disregard the price and focus on market capitalization (MC). In the early days of Dogecoin, due to the coin's massive quantity, hardly one took it seriously.
Even though it was traded and went through several ups and downs, Dogecoin was never a significant player in the cryptocurrency world. On the other hand, the coin's supporters ensured its survival primarily via fundraising efforts and charitable contributions.
DOGE soared to new heights after being propelled by social media zealots. However, this was before the arrival of Elon Musk. The price of this cryptocurrency soared as a result of the promotion by Elon Musk on Twitter. For a currency with such an ample supply, this is quite amazing.
The Meme Coin's Boom
Meme coins' value and diversity had both risen dramatically by 2021. As a result of the popularity of Dogecoin and the growing acceptability of cryptocurrencies in general, the market for meme coins has taken off. A significant part of their fame stems from their relationships with well-known people in the social media world. With the help of well-paid coin endorsers like these, awareness of the coinage has grown significantly. Many, including Elon Musk, credit the emergence of meme coins to him as a DOGE enthusiast.
Popular Meme Tokens
There are over 90 meme tokens, which is much too numerous for us to cover here. However, we'll offer you a quick rundown of some of the most popular crypto-meme alternatives in the sections that follow.
DOGE is the most popular meme coin, based on a picture of a Shiba Inu dog. Thus far, it has attracted backing from luminaries such as Elon Musk, who helped launch it in 2013.
In March of 2021, Safemoon became live. It's entirely user-generated. The most distinctive aspect of Safemoon coins is that they include a protocol feature that discourages the sale of native tokens of the platform.
In April of 2021, this digital asset became a reality. Shiba Inu was founded as "an experiment into decentralized spontaneous community creation," according to the official website. It should not be confused with DOGE, which is an entirely unrelated cryptocurrency. It's named after a Japanese dog breed.
MONA is based on an unknown developer's meme of a cat-like image. One hundred five million tokens are available, with the Japanese Financial Services Agency approving the token.
Yield farming and memes are combined in HogeFinance (HOGE), which utilizes ETH's Defi infrastructure.
In extension to the ones listed below, there are several additional types of cryptocurrency meme tokens. For example, Pepe Cash and Loser Coin are just a few of the cryptocurrencies available.
Meme Coins: How to Purchase
When it comes to purchasing meme coins, it's the same as buying any other kind of cryptocurrency. Open an account on an exchange, such as ATAIX, and begin purchasing coins using fiat money (or trade them with other cryptocurrencies). Memecoins may be found on almost all major cryptocurrency exchanges.
Meme Tokens Have Some Drawbacks
Meme tokens, like anything else, have various drawbacks, including the following:
- The purpose of many meme coins is unclear.
- Unlike cryptos like Bitcoin, which have a finite quantity, certain meme currencies have an inexhaustible supply. This will have a vital impact on the stock's long-term price appreciation.
- These "jokes" have a propensity to be quite explosive since many of them are.
- Because these coins are introduced so fast, there's a chance you'll finish up with a loss.
- Before deciding to invest in these cryptocurrencies, you should be aware of the risks involved.
In retrospect, what may have begun as a joke now seems to be not so humorous. Entrepreneurs like Elon Musk are getting in on the action as the value and popularity of meme currencies rises. However, whether or not you participate in it is entirely up to you. Just remember to keep all of the information under consideration.