Crypto

What Drives People to Invest in a Meme-Based Cryptocurrency?

Initially released in 2013 as a joke, Dogecoin has grown to become one of the most popular meme coins cryptocurrencies linked to online jokes or pop cultural allusions. Retail investors are familiar with these dog-themed currencies, such as the Japanese Shiba Inu, which has spawned imitations like Dogecoin variants Shiba Inu, Dogelon Mars, and Samoyed Coin. These joke currencies have gained traction despite their low unit price, but investors aren’t sure if they should be taken seriously.

What are Meme Crypto Coins?  

Memes and net jokes are the supply of meme cash, which can be virtual currencies just like Bitcoin or Ethereum. They are often depicted via humorous pix and are supposed to go viral. Among meme currencies, dog-themed cash like Dogecoin, Shiba Inu, and Dogelon Mars are properly appreciated. Jackson Palmer and Billy Markus invented Dogecoin as a prank to parody Bitcoin and other popular cryptocurrencies.

Memes can be exchanged for other cryptocurrencies and used for various purposes. The price of DOGE increased by more than 12,800% in just five months in 2021, hitting an all-time high of $0.7376. However, Dogecoin has dropped 91% from its peak during the November 2022 cryptocurrency bear market.

Given that meme currencies have been around for a long, the majority of these meme crypto coins have the following traits:

  • A large, maybe infinite supply of coins, billions, perhaps. Since meme coins lack a burn mechanism, their value always increases.  
  • The price per unit is low since there is a large supply.
  • Memes are readily created by anyone, and you can quickly locate tools to do the work for you.
  • Memes aren’t intended to be used as utility tokens.  
  • Memes have a lot of volatility

Are Meme Coins a Good Investment?  

Meme coins are a volatile type of cryptocurrencies that have become more well-known as a result of the internet and Elon Musk. Dogecoin had a 90%+ decline from its peak in the 2022 bear market, while other lesser-known currencies are going extinct. Meme currencies, like Dogecoin, are not taken seriously and have an infinite supply. They have small development groups and are frequently made by copying the code of popular cryptocurrencies. Over its existence, Dogecoin’s development has faced several obstacles.

Meme coins are owned by small groups with large quantities and market-moving liquidity, making their prices highly volatile due to social media sentiments, “FOMO” (fear of missing out), and other factors. They are also vulnerable to pump-and-dump schemes, where a large group or individual hypes up the coin and gets others to buy it before inflating the price.

When their tokens wind up being worth far less than what they paid initially, investors who thought the price of coins would grow would be dissatisfied. It is essential to diversify your portfolio of mem coins and be mindful of the extremely volatile nature of cryptocurrencies.

What are the most popular Meme coins?  

Some of the most well-known cryptocurrency assets are memes, and well-known public personalities have even endorsed these digital currencies. Finding the best meme coins to invest in may be challenging, even with the abundance of alternatives available especially if you’re new to this field. These are the most popular meme coins.

Dogecoin (DOGE) 

Dogecoin, created in 2013, is a popular meme coin that first of all aimed to mock Bitcoin’s fast growth. Today, it’s by far one of the top cryptos, with many corporations accepting DOGE as charge. In 2021, Elon Musk, CEO of Tesla and SpaceX, promoted Dogecoin on social media, riding its rate up to $0.73. Despite its decline from its peak in 2021, Dogecoin remains one of the most famous 20 meme cash internationals, demonstrating widespread adoption and dominance in the meme crypto atmosphere.

Shiba Inu (SHIB) 

Shiba Inu, launched in late 2020, is an experiment by anonymous Ryoshi aimed at overthrowing Dogecoin and becoming the most popular meme coin for cryptocurrency investors. The team has developed various use cases, including the DeFi platform ShibaSwap for crypto trading and a venture into the Metaverse, with plans to create virtual real estate called Shiba Lands. Shiba Inu has been nicknamed “Dogecoin killer.”

Baby DogeCoin (BabyDoge) 

The Baby DogeCoin project, launched in 2021, uses the BSC blockchain to empower individuals with cryptocurrencies and help dogs in need. Inspired by the popular meme token Dogecoin, BabyDoge aims to donate to NGOs working for animal welfare, empowering individuals with the power of cryptocurrencies and supporting dogs in need.

Dogelon Mars (ELON) 

Dogelon Mars (ELON) is a dog-themed cryptocurrency launched on April 23rd, 2021, featuring a mascot as an NFT. Half of the token supply was donated by Vitalik Buterin to the Methuselah Foundation, which committed to not selling the tokens for one year to increase their long-term value.

Samoyed Coin (SAMO) 

Sam Bankman-Fried, the proprietor of the FTX exchange, and co-founder Anatoly Yakovenko of Solana presented Samoyed Coin, a meme currency on the Solana blockchain, in 2021. The coin seeks to increase the number of users in the cryptocurrency market, optimize profits for token holders, draw in new users, inform market participants, and promote social interaction. The public face of meme currencies on Solana is Samoyed Coin.

Monacoin (MONE) 

Launched in late 2013, MonaCoin is an old meme cryptocurrency asset that runs on a peer-to-peer network in Japan. It utilizes the Lyra2RE(v2) algorithm and is a fork of Bitcoin that gave rise to Litecoin. The two primary advantages of MonaCoin are its committed community and its 1.5-minute transaction processing time. Following a television commercial, Japan was the first nation to embrace a meme currency. Nevertheless, MonaCoin’s price has not increased after its 2017 surge.

Pitbull (PIT) 

Pitbull (PIT) is a dog-themed meme coin on the BSC (Binance Smart Chain) with a community-driven meme theme. The Pitbull community, composed of volunteers, aims to inspire community-driven cryptocurrency projects. They call it a “unique social experiment” and aim to attract new investors. PIT rewards investors with an auto-staking system, ensuring passive yield and paying token holders fees. Additionally, 2% of each transaction is distributed to all holders.

Read also: American Express Cards: Exclusive Offer for High-Net-Worth Individuals Opening an Account in Switzerland

Do meme coins make the best investments?

Investing in meme coins can yield financial gains, but it’s not guaranteed due to their volatility and quick value drop. Researching the coin’s background and information is crucial, as even popular digital currencies can be fraudulent. Despite their low cost, purchasing large amounts with minimal investment can yield small returns, so it’s essential to avoid overspending.
Intrigued by Dogecoin and wondering how to buy dogecoin?  Dogecoin, the most well-known meme coin, can be bought on several trustworthy cryptocurrency platforms. Recall that the cryptocurrency market is subject to volatility, so before making any investments, always do your homework and act sensibly.

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