Anyone who has even a passing interest in cryptocurrency has heard of memecoins. Memecoins are cryptocurrencies that typically arise from internet memes. They usually have amusing characteristics that make them easily advertiseable and attract the attention of niche communities.
In this article, we will look in depth at memecoins, what makes them so popular, and how they came to be. In addition, we will look at some of the most popular memecoins right now.
What Are Memecoins?
Nowadays, many people associate memecoins with pump-and-dump schemes. This is primarily due to previous incidents, such as BitConnect, in which these cryptocurrencies were used for malicious purposes. On the other hand, some memecoin believers are religious. They usually claim to have a high market capitalization.
Memecoins became popular around the year 2020. This is primarily due to the COVID pandemic, but it is also due to Elon Musk’s newfound fame for Dogecoin. This resulted in the creation of a dozen new memecoins, the majority of which flopped quickly and never achieved long-term fame.
One word: Doge
— Elon Musk (@elonmusk) December 20, 2020
Shiba Inu is another well-known memecoin. It attracted a lot of attention and generated a lot of profit for early coin investors. This resulted in the creation of a slew of other meme coins.
Some countries around the world have attempted to regulate meme coins due to them causing significant financial harm to people. Thailand prohibited meme coins because they served no purpose other than to cause financial harm.
Other countries, such as the United Kingdom, have conducted extensive research into meme coins. The most notable was when Floki Inu advertised in London. The Advertising Standards Authority (ASA) determined that Floki Inu is an unregulated financial product.
How Do Memecoins Work?
Memecoins function similarly to other cryptocurrencies. To keep track of transactions, they use blockchain technology. This is analogous to meme non-fungible tokens (NFTs). The blockchain is at the heart of any decentralized finance (DeFi) project.
Even though they use the same technology, they should not be mixed. Memecoins lack access to certain blockchain features available to reputable cryptocurrencies. Furthermore, memecoins are purely financial instruments that can be traded. Major cryptocurrencies such as Ethereum and Bitcoin are not memecoins and should not be mixed.
Another distinction between memecoins and reputable cryptocurrencies is their market volatility. Only a small percentage of the memecoins in circulation are valuable. Other memecoins typically go out of style in a matter of weeks or months, becoming untradable and nearly worthless. Memecoins are extremely risky to hold and invest in, and their volatility varies greatly.
Most memecoins aren’t even coins in the first place. They are typical tokens that operate on a different blockchain. Shiba Inu is a great example of this. It is an ERC-20 token that operates on the Ethereum blockchain.
Top Memecoins on CoinMarketCap
Memecoins have received a lot of criticism in the media and investment world for being elaborate pump-and-dump schemes. This allegation should cause investors to be wary of memecoins. It has also had a minor impact on the growth of memecoins and their ability to have any other meaning other than financial instruments.
Frequently Asked Questions (FAQ)
What Are Some of The Most Popular Memecoins?
Dogecoin, Shiba Inu, Pepe, Floki, Dogelon Mars, and Bone ShibaSwap are currently some of the most traded and popular memecoins on the market. According to CoinMarketCap, this is the case. Dogecoin takes the top spot, with a market cap of $8,839,280,232. Shiba Inu is a close second, with all others being marginally lower in terms of market capitalization.
How Can I Buy Memecoins?
Memecoins can be purchased in the same way that any other cryptocurrency can. Memecoins can be purchased on cryptocurrency exchanges such as Binance, Coinbase, and Gemini. PancakeSwap requires the use of a digital wallet, which allows you to keep custody of the currency outside of an exchange.
Are Memecoins a Good Investment?
Cryptocurrency, particularly memecoins, is extremely volatile. They have a bad reputation in the investing world due to their association with pump-and-dump schemes. However, if you conduct sufficient research and are willing to invest in something as volatile as memecoins, you may be able to profit. We strongly advise you to conduct as much research as possible and to invest only what you can afford to lose.
What is The Best Memecoin?
Due to its exceptional features and user-friendly interface, Dogecoin has risen to prominence as a prominent meme coin. Its novel stake-to-earn mechanism gives users an active role and the opportunity to profit. What distinguishes Dogecoin is its vibrant community, which fosters an environment of enthusiasm and advancement. Users can easily engage with the coin, and the unique reward system adds an extra layer of appeal. Dogecoin’s supportive community has been instrumental in its burgeoning success, fostering a sense of unity and shared growth. At the end of the day, the best memecoin is the one that gives you the best benefits
Takeaways
- Mmemecoins are new cryptocurrencies that typically arise from internet memes to be as advertisable as possible to mainstream audiences.
- They usually have amusing characteristics that make them easily advertiseable and attract the attention of niche communities.
- The Dogecoin popularity resulted in the creation of a dozen new memecoins, the majority of which flopped quickly and never achieved long-term fame.
- Some countries around the world have attempted to regulate meme coins due to them causing significant financial harm to people.
- Memecoins lack access to certain blockchain features available to reputable cryptocurrencies.
- Another major distinction between memecoins and reputable cryptocurrencies is their market volatility.
- Memecoins have received a lot of criticism in the media and investment world for being elaborate pump-and-dump schemes.
