What are Meme Coins
The past few years have seen an incredible increase in the use and recognition of memes. These are mainly images, videos or texts that are copied and disseminated through the Internet and social media. Memes are interesting because they are made for entertainment purposes, but they also provoke thoughts on all kinds of topics ranging from politics to religion and are now funded with meme coins.
Memecoins were all the rage in 2021, with cryptocurrencies rising to the fore even by the general public such as Dogecoin and Shiba Inu taking over headlines and inspiring a riot of other little-known dark meme coins. But what exactly constitutes a meme coin or what differentiates a meme coin like Dogecoin from cryptocurrencies like Bitcoin and Ethereum. In this article, we discuss meme coins and how they are shaping the cryptocurrency industry.
What is a meme coin?
Just like a normal meme is based on a trending topic, a parody or a joke, meme coins are created from a joke or as a parody of trending social phenomena. Dogecoin’s founders, for example, unwittingly created the foundation of meme coins by programming a cryptocurrency that was supposed to be a joke on a Shiba Inu meme character who was popular online in 2013.
Dogecoin’s founders were making fun of how the crypto space is filled with speculators who would jump into any project as long as it was related to cryptocurrencies. With Dogecoin as an example, it’s clear that one of the main factors separating a meme coin from a regular coin is the fact that meme coins aren’t built with utility in mind.
Examples of meme coins
Although meme coins may be based on jokes, they come with a serious community of investors who make a lot of money from the growing value and popularity of the meme coin. Dogecoin, for example, has gone so far as to attract the attention of world-class billionaires like Elon Musk who tweeted that “Dogecoin is the cryptocurrency of the people.”
With that tweet, Dogecoin’s price has skyrocketed and continues to soar with the support of the likes of Elon Musk and others like MarkCuban. Shina Inu (albeit a newcomer to the meme coin industry) has also galvanized the support of many cryptocurrency investors to the point of even surpassing Dogecoin’s market share at some point.
Other examples of meme coins that are increasing in popularity in the crypto space include Dogelon, Safemoon, TigerKing, and Hoge Finance to name a few. There are also things like Squid Coin, a Meme coin that has scammed users for millions of dollars.
Meme coins are essentially jokes that have turned into cryptocurrencies. They are based on well-known memes and jokes that proliferate on the Internet. You can use a meme coin to raise funds regarding startups, use them as a teachable moment among other revelations.
Similar to regular cryptocurrencies, meme coins can be used to purchase goods and services as well as other different decentralized financial assets. As meme coins continue to grow, no one can guess if they will last longer or if they are just a matter of hype.
In short, there may be potential short-term value in meme coins, but it’s hard to imagine they will hold long-term value like Bitcoin or Ethereum. It is vital to be very cautious when investing in any type of Meme coin.