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Key Takeaways
- Meme coins are cryptocurrencies inspired by internet jokes and pop culture. Unlike traditional coins, they focus on humor and community engagement rather than real-world utility.
- The term “meme” originated from Richard Dawkins, describing the spread of ideas through a population. In crypto, memes have evolved into digital assets, reflecting internet culture.
- Investing in meme coins is risky due to their lack of real-world utility and dependence on trends.
It is rare to see a meme coin project rise above its status. Meme coins can easily grab the general public’s attention every crypto cycle. But to lead the trends, set the tone, and raise the bar is uncommon for these tokens, which we will discuss in this article.
What Are Meme Coins?
Meme coins are a lighthearted take on crypto space inspired by internet jokes and pop culture references. They function like other cryptocurrencies, using blockchain technology to facilitate secure online transactions. However, unlike established coins with serious applications and real-world utility, meme coins are known for their humor and community focus.
Meme Coins As An Instrument Of Culture
The word “meme” was coined even before the internet became part of our daily lives. It was coined by a biologist named Richard Dawkins in his 1976 book called “The Selfish Gene.”
“Meme” was initially used to describe how ideas and cultural traits spread through a population, similar to how genes, like DNA, are passed down. Fast-forward a few decades, and memes have evolved into funny images that we share online with each other. The crypto world took it one step further and became a new digital asset.
Is Investing In Meme Coins Safe?
Investing in meme coins is considered risky. Unlike established cryptocurrencies with specific use cases, meme coins lack real-world utility, and their value heavily depends on trends in the space. However, some meme coin projects have already reached their local highs this year. If you are considering investing in these cryptocurrencies, allocate only a small percentage you can afford to lose.
Top 5 Meme Coins
Dogecoin (DOGE)
Elon Musk is probably the best unofficial shiller of Dogecoin. Whenever he tweets or mentions DOGE, the token’s price tends to go up.
It is worth noting that in 2019, Elon Musk once posted on X (formerly Twitter) that Dogecoin is his favorite cryptocurrency. Additionally, he recently commented that DOGE could be used to buy Teslas “at some point.”
What differentiates it from other meme projects is that Dogecoin is a blockchain itself, as most others are just tokens on top of a Layer-1 chain.
Shiba Inu (SHIB)
Shiba Inu (SHIB) was released in late 2020 and became popular in 2021. Marketed as the “Dogecoin Killer,” SHIB created many millionaires some time ago when it pumped from a low of 10 zeros, worth fractions of a penny, to many more times that in just eight months, a 150,000X increase.
SHIB is differentiated from ordinary meme coins because it has a Layer-2 scaling solution called Shibarium, giving the ecosystem utility. Shibarium burns tokens over time, which, in theory, could make it deflationary. It is also envisioned to be the building block for other developments in the Shiba Inu ecosystem.
Pepe (PEPE)
Pepe (PEPE) was launched in April 2023, and in just under a year, it has reached a market cap of $3B. The meme coin is based on the popular internet meme Pepe the Frog, created by Matt Furie.
The developers of PEPE added some interesting features to this token. First, it has a deflationary mechanism, where tokens are burned for each transaction. Second, it has a redistribution system wherein token holders are incentivized by receiving a portion of each transaction.
dogwifhat (WIF)
dogwifhat (WIF) is the youngest token in the top meme coin list. It was launched in November 2023 and now has a market cap of about $2.78B. According to CoinGecko’s data, WIF jumped from its all-time low of $0.001555 to a high of $3.47. The simple difference that made this meme coin much more accessible to retail buyers is that you can buy WIF for a penny in on-chain fees on Solana versus $50 transaction fees when buying meme coins on Ethereum.
FLOKI (FLOKI)
FLOKI (FLOKI) was created by the members of the Shiba Inu community and was inspired by Elon Musk’s dog, Floki. Dubbed “The People’s Cryptocurrency,” the project stated that it has over 470,000 strong community members on a mission to make this meme coin the most popular crypto in the world (good luck, guys).
Like SHIB’s Shibarium, the project also has utility. For example, it has Valhalla, an NFT gaming metaverse, and FlokiFi, a suite of different decentralized finance products for the FLOKI ecosystem.
Final Thoughts
Meme coins are a way to invest in internet culture but in a speculative way. Truth be told, cryptocurrency is still largely misunderstood by most newbies. However, meme coins are relatable, and most people buy them for multiple reasons, ramping up demand and increasing their value, bringing more people into the space.
Via: 2Usethebitcoin.com
