What are Meme Coins
Memes have become a popular word in this age of the internet and social networking. One that’s often attributed — by the way of a dictionary — to a humorous image, video, or piece of text oftentimes edited to put up a comedic stature and shared among internet users. Meme coins don’t differ in meaning; they are cryptocurrencies that are inspired by memes and internet jokes.
Everything About Meme Coins
Simply put, meme coins are cryptocurrencies inspired by memes and jokes spread rapidly on the internet. Dogecoin (DOGE), which is the first meme coin to be brought to the fore, was inspired by the Doge meme created from a viral photo of a Japanese Shiba Inu dog.
Once a meme coin gets into the popularity stream and experiences a hike in value, investors join the movement which goes further to boost the coin. Celebrities and online influencers also help to boost popularity.
Meme coins, in many ways, aren’t much different from other cryptocurrencies on the market. They all run on blockchain technology and can be mined and made available to investors on cryptocurrency exchanges. A notable difference is that meme coins were created as fun alternatives to more popular cryptocurrencies like Ethereum and Bitcoin, they are treated the same way as stocks.
Risks of Investing in Meme Coins
As previously said, meme coins are mostly dependent on community endorsements, celebrity influences, and FOMO, which makes their price value highly volatile. This means the price can spike overnight and fall unexpectedly by morning when most traders and investors have turned their attention to other booming meme coins.
People also create viral cryptocurrencies in a bid to scam people out of money. Take, for example, the Squid Game coins based on the viral Netflix drama Squid Game that rose to $2000 per coin before the creators sold off their units and quartered away with everyone’s money.
Meme coins do not run on the same technology or methodology as established cryptocurrencies like Ethereum. And most of them are in every sense valueless outside the cryptocurrency sphere. Besides, no one is willing to accept Dogecoin as a payment measure for goods and services.
Meme coins are entering the market each day, and investors are hooping on the train to gain profits. While it’s possible to make interest through investing in meme coins, it’s highly important that proper research is carried out before such an investment.
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