Over the past year, Dogecoin‘s extraordinary surge in popularity has cast a spotlight on meme coins. In this piece, we delve into their background and identify the meme coin that holds the greatest promise.
What are meme coins?
A meme coin represents a type of cryptocurrency that emerges from popular internet memes, social media influencers, and online communities. The roots of meme coins go back to the inception of the first meme coin, Dogecoin (DOGE), which paved the way for this trend.
In 2013, two software developers, Billy Markus and Jackson Palmer, created Dogecoin as a humorous project. They chose the Shiba Inu breed’s image as its symbol to reflect its lighthearted origin.
Based on Marcusco and Jackson’s explanation, Dogecoin was intended to be a lighthearted and welcoming digital currency that would resonate with early Bitcoin backers, poking fun at the frenzied crypto market craze prevalent then.
It’s astonishing how a joke turned into a phenomenon, drawing an unusual fanbase that invested in the digital currency called DOGE. This currency gained traction on Reddit due to its use for online tipping and advocating for causes people cared about. The Dogetipbot service made it possible for users to transfer DOGE directly through their Reddit comments, making it a hit among Reddit and Twitch communities.
In the beginning, Dogecoin wasn’t widely recognized until late 2021. A significant factor contributing to its newfound fame was Elon Musk’s consistent endorsements as a crypto advocate and Tesla CEO. These tweets ignited further investment hype, leading Dogecoin to reach an all-time high of $0.73 in May 2021, marking a staggering 5,000% price surge from the beginning of that year. However, by April 2024, its value had dropped approximately 80%, leaving it at around $0.15.
Other meme coins gained traction following Dogecoin’s surge in popularity, drawing investors in as well. As a result, these meme coins became more prominent players in the crypto market.
How many meme coins are there?
Based on information from CoinMarketCap, approximately 2,000 meme coins exist, accumulating a total market value exceeding $45 billion.
Why are meme coins so popular?
Meme coins have gained significant popularity for various reasons. Young and novice investors are particularly drawn to these digital currencies due to their association with an intriguing internet phenomenon. The potential for substantial profits adds to their allure.
Newcomers are frequently drawn to meme coins due to the buzz around their potential for large profits and expanding fan bases.
The fear of missing out, or FOMO, has played a role in the surge of popularity for meme coins. For instance, when Dogecoin experienced a rally following Elon Musk’s tweets, numerous other meme coins emerged, hoping to capitalize on the market buzz. Although many of these new coins were similar to Dogecoin with only slight modifications to their coding, they all boasted the potential of being the next DOGE.
Dogecoin might be my fav cryptocurrency. It’s pretty cool.
— Elon Musk (@elonmusk) April 2, 2019
Where to buy meme coins?
Meme coins are commonly available for purchase on various crypto platforms such as Binance, KuCoin, and Bybit. Yet, it’s essential to remember that these coins carry significant risk and volatility due to their speculative nature. So, prior to investing, thorough research is advised, and only funds that can be afforded to potentially lose should be used.
Popular meme coins
Having explained meme coins and how they work, let’s take a look at some current popular coins.
Dogecoin
Dogecoin, an open-source cryptocurrency derived from Litecoin‘s code, is currently the most widely used meme coin and could potentially be the first to hit a dollar for many investors. Its creators believed that a meme coin like Dogecoin had a better chance of gaining mainstream acceptance than Bitcoin, which was still in its early stages back then.
Similar to Bitcoin, Dogecoin relies on the proof-of-work (PoW) system for transaction validation and rewarding miners with fresh Dogecoins. While this digital currency can be employed for transactions, it doesn’t offer significant real-life applications. Instead, its worth primarily stems from market speculation and a dedicated community of crypto enthusiasts.
Additionally, Dogecoin doesn’t set a limit on the production of coins, resulting in an infinite supply and the potential for continuous inflation.
Shiba Inu
Shiba Inu is a meme cryptocurrency, modeled after ERC20 technology as an alternative to Dogecoin, and managed by an engaged community referred to as the SHIB Squad. Established in 2020 by an anonymous figure named Ryoshi, it experienced its peak price of $0.00008845 in October 2021, while presently trading around $0.00002189.
Shiba Inu follows the ERC-20 norm, making it compatible with various decentralized apps (dapps) and financial systems (DeFi). The community behind Shiba Inu created their own Decentralized Exchange (DEX), named ShibaSwap. On this platform, users can buy and sell SHIB tokens, add liquidity, stake tokens, and swap different tokens to earn rewards through its incentive program.
At ShibSwap, you can work with both LEASH and BONE tokens. LEASH brings rewards to those supplying liquidity in our Decentralized Exchange. On the other hand, BONE is a token that empowers users to take part in voting processes for future proposals within Doggy DAO.
Pepe
In simpler terms, Pepe (PEPE), modeled after the famous Pepe the Frog meme, was introduced in April 2023 by a hidden group. This digital currency is unique due to its enormous total supply of 420.69 trillion coins. To keep scarcity, the team regularly destroys some tokens from circulation.
On Ethereum‘s blockchain, Pepe Coin functions as an ERC-20 token and employs the proof-of-stake (PoS) consensus mechanism. The Pepe Network’s native token, PEPE, serves various roles: it can be used as a keepsake, a present, or an investment opportunity.
Pepe coin does not impose taxes, instead opting for low trading fees. These fees are only activated when the network is heavily used, ensuring affordable transactions for users.
Based on the plan for the project, approximately 93.1% of the tokens will go towards the liquidity pool to maintain its stability. The remaining 6.9% will be kept by the development team to facilitate future collaborations, exchanges, and marketing efforts.
Dogelon Mars
Dogelon Mars, or ELON for short, is a meme cryptocurrency modeled after Dogecoin and Shiba Inu. Its name is a blend of “Doge” from Dogecoin and the renowned entrepreneur Elon Musk. (ERC-20 being the Ethereum standard for tokens.)
A group of unidentified creators developed Dogelon Mars, a digital currency that functions on both the Ethereum and Polygon networks. This cryptocurrency boasts a grand total of 1 quadrillion tokens in existence. The developers generously gifted half of these ELON tokens to Vitalik Buterin, Ethereum’s founder, with the intention of having him eliminate them from circulation by burning them. The remaining ELON tokens were distributed into liquidity pools.
The dog-themed coin’s site showcases a collection of brief comic strips detailing Dogelon’s Martian journeys, during which he seeks to unravel the universe’s most intriguing enigmas.
Baby Doge
BabyDoge, also known as BabyDoge Coin, is a new meme token inspired by the hugely popular Dogecoin. Created by anonymous developers in June 2021, they aimed to captivate Dogecoin fans with its cute appeal (and potentially benefit from the meme cryptocurrency craze).
The project Baby Doge aims to build an entertaining social media platform centered around animal welfare and pet adoption. This platform includes a BabyDoge AI tool that enables users to generate unique Baby Doge characters, memes, and visuals using artificial intelligence. Furthermore, community members have the ability to transform these creations into NFTs (Non-Fungible Tokens) through BabyDoge, expanding their digital collectibles.
BabyDoge functions as a BEP-20 token running on BNB Smart Chain. This meme coin was designed with a deflationary feature, and the total number of BabyDoge tokens that can ever exist is set at 420 quadrillion.
How to find new meme coins early?
Discovering meme coins before they gain widespread popularity is achievable by regularly engaging in the digital world of crypto communities.
- Social media: Following crypto influencers, developers, and enthusiasts on platforms like X, Reddit, and Discord could lead to catching onto new projects they find interesting.
- Crypto forums and communities: Forums like Bitcointalk and CryptoCompare often discuss emerging projects, including meme coins.
- Token launch platforms: Sometimes, meme coins are launched through these platforms, so keeping an eye on them may lead to discovering coins early.
- Crypto news websites: Websites like crypto.news, CoinDesk, and Cointelegraph often cover new and trending crypto projects, including meme coins.
- Token listings on exchanges: Some exchanges list new tokens before they gain widespread attention. Regularly checking the new listings section of exchanges could help investors spot meme coins early.
Are meme coins worth it?
Investors can potentially earn money by trading meme coins; however, keep in mind that this is much like gambling due to their limited real-world applications. Mainly, meme coins function as humorous currencies and serve primarily for speculative purposes.
Meme coins such as Dogecoin and Shiba Inu can be contrasted with Bitcoin in the following way: Bitcoin is a digital currency that is designed to decrease inflation over time because its supply is capped, making it similar to gold in the digital world. On the other hand, meme coins don’t have practical uses beyond their online communities, where investors are drawn to them due to their shared faith in their worth.
It’s important to note that meme coins have the potential to dramatically increase in price, but investors must conduct thorough research before considering an investment. Factors such as understanding how meme coins function within the crypto market, risk tolerance, and personal investment objectives should all be taken into consideration.
FAQs
What are the best crypto exchanges for meme coins?
The ideal exchange for meme coins doesn’t exist since availability is subject to change and new ones frequently surface. Nevertheless, some widely-used exchanges have a reputation for listing popular meme coins due to their extensive coin selections. Notable examples are Binance, KuCoin, and Gate.io.
To ensure safety and trustworthiness, investors are advised to check an exchange’s reputation, security features, and adherence to regulations before trading. Keep in mind that some lesser-known coins, such as meme coins, may not be listed on prominent exchanges and instead can be traded on decentralized platforms like Uniswap or PancakeSwap.
Be mindful that investing in meme coins carries significant risk due to their volatility. It’s crucial to conduct extensive research before making any purchase decisions.
What are the best apps for meme coins?
For those interested in tracking meme coins and their price fluctuations, trends, and news, there are various apps to choose from. The optimal choice for each investor will depend on their specific requirements and personal preferences.
Applications like CoinMarketCap and CoinGecko give extensive information on diverse cryptocurrencies, including meme coins. They offer features such as price monitoring, market capitalization analysis, trading volume tracking, and historical data review. As for portfolio management, apps such as Blockfolio and Delta enable investors to input their investments in meme coins, follow their live values, and set up alerts for price fluctuations.
Trust Wallet and MetaMask are wallet apps that allow users to store and access a multitude of tokens, including meme coins, securely. These apps also provide simple connections to decentralized exchanges (DEXs) for trading transactions. On the other hand, crypto.news, CryptoSlate, and CoinDesk serve as reliable sources for crypto news and analysis. They keep users updated on the latest happenings and trends in the cryptocurrency market, including meme coins.
It’s important for users to exercise caution and verify the accuracy of information regarding meme coins obtained from apps, as this area is known for its instability and unpredictability.
What are the best meme coins for long-term investment?
At present, Dogecoin (DOGE) stands out as the most widely used and promising meme currency available, boasting a substantial following, an engaged community, and a substantial market value of $9.1 billion. As a result, it holds the position of the largest meme digital currency within the crypto sector, making it an intriguing possibility for investors with a long-term perspective.
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2024-04-18 13:49