Meme Coins are cryptocurrencies inspired by jokes or memes on the Internet. Meme Coins often have no intrinsic value, are not intended to solve any social problems, and rarely bring long-term benefits to investors.
Why is Meme Coin becoming popular?
Meme Coins are becoming increasingly popular, mainly for two reasons:
- Low Value and Huge Supply: This factor makes it easier for newcomers to access Meme Coin than other mainstream cryptocurrencies. A user can even hold millions and billions of meme coins with only a small amount of capital, giving a completely different feeling than having a small amount of ETH or BTC.
- Associated with Trends and Celebrities: Meme Coins emerge with trends, images of famous people, famous KOLs in the world, or special events in the online community. This is why Meme Coin can become a “shining star”, potentially bringing in profits that grow 1,000 or even 10,000 times for investors.
For example, since Elon Musk publicly supported Dogecoin, this Meme Coin has grown enormously and has become more prevalent in trading and paying for services and goods. Any statement by Elon Musk is likely to affect the increase/decrease of DOGE in the short term.
The risks of investing in Meme Coins
- Easy to lose Value: Meme Coin is much more “volatile” than mainstream cryptocurrencies because it is highly trending and speculative, leading to price injections and unexpected dumping.
- Short Lifecycle: The lifecycle of most Meme Coin projects is relatively short. The information mentioned in the Whitepaper and Roadmap can be very sketchy. Although the value of that asset can suddenly increase due to FOMO or celebrity statements, it can also suddenly decrease when the project stops working, or the community’s interest turns to other Meme Coin.
- Risky Platform: It is easy for developers to create new Meme Coins. Most of them are not built on a reputable and secure blockchain platform. Only a few Meme Coins are built on the technology of mainstream cryptocurrencies. For example, DOGE is a fork of Litecoin (LTC), SHIB is built on Ethereum (ETH),…
Investors should choose projects built on a solid blockchain platform to minimize risks, with a roadmap and commitment to bringing long-term value to their community.
Some popular Meme Coins
- Dogecoin (DOGE): Dogecoin (DOGE) is a Meme Coin inspired by the Japanese Shiba Inu dog, created by software engineers Billy Markus and Jackson Palmer in 2013. DOGE is a fork of Litecoin, uses a Proof-of-Work algorithm, and was initially used as a random reward for block mining.
- Shiba Inu (SHIB): Dubbed the “Dogecoin killer”, SHIB was born as a rival of DOGE. SHIB debuted in April 2021 and is also inspired by the Shiba Inu dog. The total supply of SHIB is 1 million billion. The Shiba Inu ecosystem is quite diverse, including Decentralized exchange – ShibaSwap, Metaverse – Shibaverse, NFT Games,…
- Spell Token (SPELL): SPELL is a Meme Coin that works in the Abracadabra.money network. Inspired by the famous Harry Potter series, Abracadabra.money is considered a “magic book” that helps users create Magic Internet Money (MIM) – a decentralized stable currency pegged to USD.
The power of the current Meme Coins is not really sustainable but largely depends on the love and interest of the community. Meme Coin group assets are often rated as risky, highly volatile, suitable for investors with a high-risk appetite.
The ONUS application currently includes a #Memei category, making it simple to look up assets, monitor market fluctuations, and conduct buy and sell transactions.