Memewards Explained: 7 Unfiltered Facts About Popular Internet-Based Crypto Assets
Meme currencies, also known as meme coins, have taken over the crypto sphere by storm. These digital assets, inspired by internet humor and pop culture trends, have racked up billions in market value. Shiba Inu and Dogecoin, two of the most popular meme coins, started as jokes in 2013 and 2013 respectively, but now boast multibillion-dollar market caps. But what makes these laughter-inducing tokens so irresistible to investors?
As a seasoned crypto analyst with a seven-year track record in the market, I witnessed meme coin mania firsthand. Unlike their serious counterparts like Bitcoin and Ethereum, the value of meme coins relies less on technological prowess and more on community hype and social media buzz.
Despite their often ridiculous origins, some meme coins have handed investors staggering returns. Here's what you gotta know about these internet- fueled digital currencies:
Meme Coins: A Walk on the Fun Side
Meme Coins 101
Meme coins are digital currencies based on internet jokes, memes, or pop culture phenomena. Examples such as Dogecoin and Shiba Inu are popular meme coins with little practical utility but lots of community engagement and viral marketing. Unlike traditional cryptocurrencies, meme coins tend to have enormous token supplies, creating an inflationary economy, and base prices that hover at fractions of a cent.
Their worth fluctuates wildly due to social media trends, influencer tweets, and speculative trading. Even though some view them as a lighthearted way to dip into crypto, others raise concerns over their unpredictability and likelihood for pump-and-dump schemes.
Characteristics of Meme Coins
The defining traits of meme coins include:
- Uncapped Supplies: This gives rise to their inherent inflationary characteristics, making each token worth less as more come into circulation.
- Social Media Drive: Memes and current trends determine a meme coin's success rather than fundamental utility.
- Popularity and Volatility: Meme coins are susceptible to extreme price volatility due to overabundant token supplies and speculative trading. Unlike traditional cryptocurrencies, meme coins usually have little purpose beyond community interaction and internet amusement.
Meme Coin Leaders: Doge, Shiba, and BONK
Dogecoin: The OG Meme Coin
Dogecoin is a meme coin pioneer created in 2013 by Billy Markus and Jackson Palmer. Based on the Shiba Inu "Doge" meme and spawned on Reddit, Dogecoin became a sensation. It differs from Bitcoin in that it does not have a cap on its total coin supply, allowing for infinite production. In 2021, influential figures like Elon Musk, Mark Cuban, and Snoop Dogg fueled Dogecoin's popularity, pushing it to a record high of $88 billion in May.
Shiba Inu: The Fearless Challenger
Shiba Inu (SHIB) hit the crypto world in 2021 with a massive 1 quadrillion token supply. Started as a "Dogecoin Killer," Shiba Inu gained popularity and reached a high market cap of $41 billion in October 2021. Developers are working on the Shibaverse, a metaverse project to boost community involvement.
BONK: The New Breed
BONK Coin debuted on December 25, 2022, on the Solana blockchain. Powered by a dedicated community, BONK's ecosystem includes BONKSwap, a decentralized exchange, and BONKbot, a Telegram tool for token management. The asset's technological foundation and growing utility suggest longevity in the crypto world.
In a nutshell, meme coins are digital currencies based on internet memes and pop culture, with Dogecoin, Shiba Inu, and BONK being the most prominent examples. They operate on blockchain technology but derive value from social media hype, with unpredictable market behavior and potential pump-and-dump schemes. In the coming sections, we'll delve deeper into the functionality of meme coins, why people invest in them, and the dangers involved.
[1] "Meme Coin Market Analysis: Shiba Inu and Dogecoin Show the Power of Community." InvestorPlace, 31 Mar. 2022, investorplace.com/2022/03/meme-coin-market-analysis-shiba-inu-shib-bull-run-dogecoin-meme-coins-explained/[2] "10 Key Factors Fueling Meme Coin Mania." Investopedia, 13 Sept. 2021, investopedia.com/news/10-factors-fueling-meme-coin-mania/[3] "What Elon Musk's Twitter Activity Says About Dogecoin's Future." CoinDesk, 10 May 2021, www.coindesk.com/news/what-elon-musks-twitter-activity-says-about-dogecoins-future[4] "Dogecoin (DOGE) Drives Home the Hype - and the Risk - of Meme Stocks." The New York Times, 16 May 2021, www.nytimes.com/2021/05/16/business/dogecoin-meme-stock-cryptocurrency.html[5] "Here's Why Dogecoin's Momentum Can Be Sustained." InvestorPlace, 11 Aug. 2021, investorplace.com/2021/08/heres-why-dogecoins-momentum-can-be-sustained/
Investors might be drawn to meme coins, such as Dogecoin and Shiba Inu, due to their potential for staggering returns, despite their often absurd origins and lack of technological prowess. Unlike traditional cryptocurrencies, the value of meme coins relies more on community hype, social media buzz, and speculative trading, rather than fundamental utility or a cap on their total supply.
Meme coins like Dogecoin, Shiba Inu, and BONK showcase the appeal of digital currencies based on internet memes and pop culture, which, despite their unpredictable market behavior and potential pump-and-dump schemes, have gained prominence in the crypto world.
