Why There Has Been An Increase In Popularity For Meme Coins
Cryptocurrency has been a popular buzzword in recent years. It was recently reported that 1 in 10 people are now investing in cryptocurrency. Part of the reason is because of the ease of trading with other investors.
Many have heard of the word cryptocurrency but are unfamiliar with what it means. Whilst some have a vague understanding of cryptocurrency. Few are well-versed in the world of cryptocurrency, having invested in their fair share of Bitcoins, Litecoin and Ethereum over the years.
However, there are more types of cryptocurrency available. What originally started as a joke now has a loyal, supportive community. Dogecoin was created from the popular meme that features a Shiba Inu. Dogecoin falls under the meme coin category, a new strand in cryptocurrency. Meme coins are becoming increasingly popular amongst investors and those interested in cryptocurrency.
The world of cryptocurrency can be confusing at times. Now that memes have slowly crept into the cryptocurrency space, it can be overwhelming to navigate this altering realm. Here is a brief insight into what meme coins are and where they originated.
Understanding Meme Coins
Memes have become synonymous with internet culture throughout the years. They are a prized asset, with people sharing their favorites across social media platforms and through messages. Although they are still a beloved part of internet culture, memes are now gaining popularity in the realm of cryptocurrency. It has led to the rise of meme coins.
Meme coins are a type of cryptocurrency. However, there is a clear differentiation between the two, its aim. Meme coins currently do not have real-world use. When they were created, they were done so for profit.
The value and variety of meme coins skyrocketed in 2021. It was partially due to Dogecoin’s success, which included enticing success stories of a few investors. With cryptocurrency slowly becoming more accepted in the general market by members of the public, there has been a surge in meme coins becoming available to invest in.
A significant part of why meme coins gained popularity in such a short period is the linked connections. Several celebrities and social media influences had openly discussed investing in meme coins.
Popular Types Of Meme Coins
Dogecoin is the original meme coin. Created by software engineers Billy Markus and Jackson Palmer, the pair designed Dogecoin from a Litecoin fork. The term fork is used when describing a situation in which a specific blockchain separates into two paths. Using a Scrypt technology, similar to Litecoin, it features a block time of one minute. It enables users to mine it at any time by joining a mining pool.
Following the rise in popularity of Dogecoin, naturally, there was a surge in other meme coins hitting the world of cryptocurrency. These are a few of the additional meme coins in which the success of Dogecoin influenced their creation.
- Shiba Inu (SHIB) – Although Shina Inu is a dog breed, it is also a popular meme coin. It is one of many other dog-themed crypto platforms available. You can even buy Shiba Inu in Canada as it is now available to invest in.
- TacoCat (TCT) – TacoCat is a community token that aims to support merchandising creative professionals with a potential crypto asset. It also has real-world value. The self-contained ecosystem is has been designed to expose and grow the community of crypto assets. It has been done so that the mainstream audience has the chance to experience the cryptocurrency market.
- MonaCoin (MONA) – MonaCoin has amassed a cult following for a few years now. Compared to other meme coins, its primary difference is that it is priced at an average rate.
- Dogelon Mars (ELON) – A common theme amongst meme coins is the use of dogs. Dogelon Mars is no exception to that common theme. It is one of the many dog-themed meme coins available, which was created following the success of Dogecoin. Dogelon Mars was made on one of the most popular blockchains, Ethereum. Today it is a popular meme coin. However, it has not reached the same level of popularity as either Dogecoin or Shiba Inu.
What To Consider Before Investing
Meme coins is a heavily discussed investment opportunity within the world of cryptocurrency. The potential for significant returns with these assets, combined with the innocent animal mascot, attracts new investors. In particular, those who have limited prior experience investing in cryptocurrency.
It is vital to know how to invest in meme coins safely. Knowing what to look for and what is worth considering will ensure that you do not fall into any traps or invest in a fraudulent meme coin. These are a few things to take into consideration before choosing to invest.
Learn How To Identify Credible Meme Coins
Before you choose to invest, ensure that you can identify a credible meme coin from a fake one. Meme coins are crypto projects that have been created around a theme of a meme. For example, Dogecoin was inspired by the meme of a smiling Shiba Inu.
One way to identify a credible meme coin is the project’s goal. The desire to generate profits is naturally the primary goal, but there is usually another shared goal amongst the community supporting the meme coin project. If the community is trying to encourage new investors to buy a token to drive the price higher, it is something to consider avoiding.
Verify Validity Of Liquidity Pools
Meme coins are usually distributed through an automated market maker. When a token is first launched, the development team behind it will create a new liquidity pool for investors. It is for them to use to purchase a token. These are smart contracts let you swap crypto between investors without using a third-party.
Check Meme Coins Transparency
When working on digital assets, development teams must promote an open and transparent ecosystem. One of the underlying codes of the cryptocurrency needs to be assessed by a reputable third-party software auditing company. It is to ensure that the development team of the specified meme coin has not implemented any hidden tricks which would enable them to initiate an exit fraud. When an audit is completed, it is often shared on social media. It allows potential investors to quickly find the completed audit when searching online for more information about the meme coin they are interested in.
Reasons For Interest
With interest around meme coins rarely faltering, many wonder why investors are keen to invest in this new form of cryptocurrency. A significant part of the reason is how easily recognizable they are. Memes have flooded the internet for years and have become instantly recognizable as a result. Meme coins share similar qualities to household name brands. Many can recognize a brand by the logo or catchphrase. It is the same with memes. Investors feel comfortable investing in meme coins as they are familiar with the meme.
Here are a couple more reasons why this rising trend has amassed a new following.
- Active Community Online – Some of the most popular meme coin communities are filled with loyal and active members. It is one of the most loyal communities within the realm of cryptocurrency. Anyone new to the community will find support amongst current members initially. The support available could be beneficial when making investment decisions.
- Affordable Entry – Meme coins are remarkably cheap to invest in. Whilst the cost might be low, it does not guarantee to get rich by having hundreds of thousands of tokens. The price of meme coins is not the same value as with mainstream cryptocurrencies.
The Future Of Meme Coins
Meme coins are still a new entry into the world of cryptocurrency. Compared to the more established cryptocurrency, there is still a long way until it reaches the same level, especially in terms of being known. Despite starting as a joke, meme coins do have the potential for solid growth in the future. They are still rising in value and popularity, with more celebrities and social media influencers openly admitting to having invested.
If you choose to invest in meme coins, ensure that you budget your money well. After you have invested in your chosen cryptocurrency, it is essential to manage your money to help you reduce your risk of losses as much as you possibly can. Only invest in what you are willing to lose. Investment is about taking risks, but it should be done without putting you at risk financially.
It is possible to profit when investing in meme coins; it depends on timing. If you buy and sell your meme coins at the right time, you could make a generous profit from your investment. However, there is the likelihood of losing most of or all of what you invest.
Similar to any crypto investment made, it is a risk that you have to consider taking. Ensure that you have conducted thorough research before investing. It will help to prevent you from investing in a fake meme coin. Instead, you can invest in a genuine one and take the chance of potentially seeing a return on your investment.
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