Meme

Memecoin culture in cryptocurrencies

A special class of digital assets known as meme coins has become very popular. These are cryptocurrencies that appeared because of Internet memes and viral marketing in social networks.

What is Meme coins

Meme Coins is a term used to refer to crypto named after characters, famous personalities, animals, works of art, or any other objects that can be interpreted in a humorous or satirical way. These cryptocurrencies are often backed by active online communities, and their main purpose is entertainment and ease of use. Despite their humorous nature, meme coins are extremely risky investments that may have no real value.

Note that the architecture of meme coins, like traditional cryptocurrencies, involves all the mechanisms of various blockchain platforms. However, unlike cryptocurrencies such as Ethereum, which have specific functions, parameters and uses, meme coins are only needed for market speculation.

At time of this writing, capitalization of all meme segment of cryptocurrencies, according to CoinGecko, reaches about $40 billion.

One of the main features of meme coins is their limited utility. That is, ETH is used to pay commissions in the network, while, for example, SHiba Inu is an ERC20 standard coin, which is based on ETH, but does not have any unique functionality.

Popular meme coins

Let’s take a look at a few of the most prominent representatives of meme coins to better understand the principles of their work:

Dogecoin

Dogecoin came into existence in December 2013 thanks to programmers Billy Marcus and Jackson Palmer. The idea of creating a joke cryptocurrency emerged amid the hype around the growing altcoins. A popular meme with a Shiba Inu dog was chosen as the logo and brand.

Despite the clearly comedic orientation, the Dogecoin community has repeatedly launched real charitable projects. The most notable was a fundraiser for Jamaica’s participation in the 2014 Winter Olympics. And in 2021, DOGE attracted the attention of Ilon Musk, which increased the excitement around the coin.

NOTCoin

Another unique project positioning itself as a meme coin is the Telegram-integrated Notcoin. The project offers a unique experience in the world of cryptocurrency and gaming.

Users can earn tokens by performing simple actions through a bot in Telegram, making Notcoin accessible and appealing to a wide audience. Now the NOT token continues to grow after listing on exchanges.

Pepe Coin

PEPE Coin is a deflationary cryptocurrency created in 2021 based on the popular internet meme. It runs on the Binance Smart Chain blockchain, which provides high speed and low fees.

Due to the popularity of the original meme, PEPE’s capitalization reached $1 billion, but then the market value dropped to $600 million. According to CoinMarketCap, the coin ranks 126th and has a capitalization of $479 million.

Benefits and disadvantages of meme coins

Benefits

• Interesting asset for learning about cryptocurrencies and blockchain technology: Meme coins can be a fun way to dive into the world of cryptocurrencies, allowing users to better understand how blockchain technology works.
• Profit opportunity: When meme currencies rise in value, investors can realize significant profits.
• Participation in an active investing and trading community: Buying and trading meme coins can provide an opportunity to join an active community of investors who discuss and analyze these currencies.

Disadvantages

• High risk and volatility: Meme coins are known for their unpredictability, and investors can quickly lose their investment.
• Fraud Allegations: Many meme coins have been accused of being part of pump-and-dump schemes that lead to large losses for unprofessional investors.
• Technical Complexity: Some users may find the process of buying and trading meme coins complicated due to the need to use crypto wallets and exchanges.
• Despite the high unpredictability, there are a number of marketing tools and info provokes that can stimulate the price of even the most exotic meme cryptocurrencies to rocket up.

Conclusion

Despite all the seeming absurdity, meme coins have already proven their ability to provide ultra-high returns at the peak of the speculative frenzy. Huge positive price waves in a matter of days or weeks are real.

However, such success is mostly short-term, random in nature. In the long term, as internet popularity declines, the value of most meme coins tends to zero. Another thing is that new memes and trends arise all the time.