In recent times Meme coins have become the popular choice of crypto investors and seem to have a louder buzz than mainstream Cryptocurrencies like Bitcoin and Ethereum. Most of these Meme coins are created as a joke before they go mainstream. But what remains a prevalent question is – “Should Meme coins be taken seriously?”
What are Meme Coins?
These are the cryptocurrencies that are inspired by internet jokes or memes. Such as Dogecoin which was created after the photo of a Shiba Inu went viral on social media platforms as a meme. Oftentimes, these cryptocurrencies are not meant to be taken seriously but still have gained momentum in the community.
As of May 2021, Dogecoin was ranked 11th in the market capitalization but the individual value of such coins never witness a hike. The popularity and spikes in their value is often a result of statement, remarks, or approach of celebrities or online figures. Thus, there exists no specific ground to define the performance and market standards of such cryptocurrencies.
Main Characteristics of Meme coins
There are two major grounds based on which the concept of Meme coins can be defined and understood.
- Unlimited Supply: The Meme coins often have unlimited supply as they are not based on any specific mechanism of coin burning or removal. Minimal effort is required to create meme- coins based on the ongoing and trending topics. So, there is no limit to their creation as they are inspired by social media puns, sarcasm, or jokes.
- Market Position: Despite the low individual valuation these coins manage to top the list based on Market Capitalization. As per the reports of Coin Gecko, Dogecoin the most famous Meme coin originated in the year 2013 and was ranked at the 10th position with a market value of $35billion in October 2021. The story is the same with the other Meme coins too.
Some Popular Meme coins in the Cryptoverse
There are several Meme coins that are the frequent talk of the town so may not sound like something new, but other Meme coins are yet to create their mark in the industry and establish more familiarity.
|Dogecoin (DOGE)||Shiba Inu (SHIB)||Dogelon Mars (ELON)|
|Samoyedcoin (SAMO)||MonaCoin (MONA)||Floki Inu (FLOKI)|
|Wakanda Inu (WKD)||SafeMoon ( SAFEMOON)||Doge Dash (DOGE DASH)|
|Kitty Inu (KITTY)||Loser Coin (LOWB)||Ariva (ARV)|
How are Meme Coins different from Mainstream Cryptocurrencies?
The fundamentals of the Meme coins vary from mainstream cryptocurrencies in several ways making it a curious hunt for crypto enthusiasts. The mainstream cryptocurrencies are created using specific technology to promote trading and transaction whereas Meme coins are devoid of such fundamental technologies and are not being created using any inherent value.
Generally, Meme coins are based on community-driven phenomena and indicate the existence of reckless gambling. On the other hand, Meme coins are way more volatile than mainstream cryptocurrencies as their fame is mostly linked to social media movements and hype.
Do crypto investors like Meme Coins?
It is quite obvious that Meme coins are becoming a sensation in the crypto-verse but are they preferred by investors too? Though it’s hard to remark the fact like the idea of crypto investment changes now and then. However, there are certainly some reasons why investors can see Meme coins as their alternative investment option, let’s understand these in detail.
- Active Community – Amongst all the available Meme coins Doge and Shiba Inu are observed to have the most active and loyal communities. These two Meme coins are seen as being in trend due to their changing facts and figures making it an exciting option for the investors.
- High Brand Recognition – Meme coins are the result of sensations and trends that goes across social platforms. As a result brand building process is halfway done, therefore Meme coins are seen as a high brand recognized coins. Hence, it becomes easier for investors to make quick decisions without much diligence.
- Cheap Entry – The entry into the world of Meme coins is comparatively cheaper and this is what tricks the investors to consider Meme coins for short-term investment. Most of the Meme coins presently available in the market hold less per unit prices which can be as less as $0.002 and give investors hope that in the future these coins would fetch profit to the investors.
Major Challenges for Meme Coins
Besides being the trending cryptocurrency element, Meme coins face several challenges, but few of the prominent factors have severely impacted their performance. These coins tend to have a high concentration of the existing supply and this level of centralization makes the investment susceptible to manipulation.
Moreover, their unlimited supply allows indefinite mining which might create a problem for fiat currencies as the market would be flooded with new unrequited coins. In comparison to their availability Meme coins have fewer use cases aligned with underwhelming development mind maps which leads to severe wastage of these coins.
Evidently, there is a lot about Meme coins that need clear clarity and description. With all that goes around and is expected to be Meme, coins can only be suitable for adventurous investors. Hence, keeping a keen eye on each of the Meme coins is the need of this eleventh hour before long–term investment decisions are to be made.