What are Meme Coins: Should You Invest in Them — Digitally Cool

Whether investing needs brought you here or your curiosity about meme coins. This article provides valuable insight into one of the hot topics of the crypto world, meme coins. Read on to know more!

Meme coins are crypto coins that originate based on a meme or a funny pun. Meme coins started with Dogecoin in 2013, and there are over 100 meme coins today, with new ones coming out often. Meme cryptocurrency works just like regular cryptocurrencies on a blockchain network. Meme coins have become paramount in the cryptocurrency industry that CoinMarketCap also has a dedicated section. Meme tokens and Dogecoin have become an integral part of the continued bullish hype in the cryptocurrency market. Among the many tokens flooding the market, two of them, the long-existing meme coin Dogecoin (DOGE) and Shiba Inu (SHIB), are the most common and widespread.

What Makes Meme Crypto Different from Regular Cryptocurrencies?

Meme crypto coins are not exactly different from mainstream cryptocurrencies such as Bitcoin, Ethereum, etc. Meme coins work the same way that regular cryptocurrencies work, based on blockchain technology. Meme crypto also has an unlimited supply like some cryptocurrencies, meaning the tokens are not limited, which affects their value. However, the main difference is that meme coins are more volatile.

Volatility is always a significant concern for cryptocurrencies, and these meme coins are even more volatile than traditional crypto-tokens making them riskier investments.

Why are Meme Coins Investments Riskier?

All cryptocurrency investments are risky, but meme coins are more dangerous. Dogecoin, Shiba Inu (SHIB), and other meme crypto are incredibly volatile. So you must be prepared to lose whatever you invest. Like memes become boring after a while when they stop making you laugh, users also move on to the next thing with meme coins.

Dogecoin was released in late 2013 after software engineers created a joke about Doge. Dogecoin was created as a joke. These were to poke fun at other cryptocurrencies like Bitcoin but gained value after a boost in popularity due to celebrity attention. As a result, investors began to focus on and invest in other meme coins crypto, making the same profit as Dogecoin. Due to this, many people stopped investing in Dogecoin and moved on, making its value fall once more.

Should You Invest in Meme Cryptocurrency?

There is no specific/definite answer to this question as people still argue if meme coins are worthy investments. Experts say that investors should avoid trading in meme crypto if they are looking for profit. But the masses keep making new meme crypto coins every week on a meme they find funny, and surprisingly, they gain popularity. But not every memecoin reaches the value of Dogecoin or SHIB.

Meme crypto is for fun and for investing. If you are a beginner, you stand to lose much money due to the higher volatility of meme coins and lack of knowledge. Investing a small sum in meme coins just for fun might pay off if the coin’s price increases. The meme coin you wish to invest in might increase or decrease, but it is up to you if you are willing to take the risk and invest in a currency that started as a meme.

Influence of Social Media on Meme Coins

Meme crypto coin originated as a result of famous memes. If we take a look at Dogecoin, it originated as a meme known as Doge. The team behind Dogecoin developed the coin as an inside joke that went on for some time before its value skyrocketed due to a tweet by Elon Musk himself. Musk recently revealed that he was sending a SpaceX satellite called the DOGE-1, funded by Dogecoins.

Musk also doubled the value of Dogecoin and made Bitcoin fall below $40,000 with his tweet. Snoop Dogg also shared a doge meme, tagging Elon Musk that gained the attention of users worldwide. The value kept on rising as it grabbed the attention of the likes of Mark Cuban, Snoop Dogg, and Gene Simmons. Today, Dogecoin has a daily trading volume of over $1.5 Billion.

Another example of the influence of Musk’s tweets is the Floki meme crypto that creators found following Musk’s tweet on naming his Shiba Inu dog, Floki. The meme coin values are influenced by such tweets, leading to higher volatility of their value. It is not sure whether the value of the meme coin list will go up, down, or stay at its place.

Popular Meme Coins in the Market

Many coin memes have entered the market after the success of Dogecoin and SHIB. New meme crypto coins refer to the Doge or Shiba coin, Elon Musk meme, and many others refer to other memes, dog names, or slang terms. One such token is SHIB (Shiba Inu), which has reached market caps in the range of DOGE itself. It is the second-largest meme coin on the market. SHIB is a coin that was designed to “ kill Dogecoin” and outperform it in the market. Just this week, there was an anonymous purchase of over 20 Trillion SHIB coins worth $1.13 billion.

These are some of the best meme coins like:

• Dogelon Mars (ELON)
• Shiba Floki
• Baby Floki Inu Coin
• Hoge Finance (HOGE)
• Pepe Cash
• Loser Coin (LOWB)
• Kangal
• Baguette Token (BGTT)
• Dogs of Elon (DOE)
• WOOF
• Pig Finance (PIG), and many more.

You can find a list of all meme crypto and their values here.

Final Words

Whatever the investment case may be with meme coins, they are here to stay. Meme cryptocurrency has grabbed the attention of investors, celebrities, entrepreneurs, and the general public alike. They rise and fall with the hype on social media, just like a new meme. If you wish and are interested to invest in meme coins, be sure to practice the best risk management strategies as they are risky investments. If not, you can enjoy the memes and the meme coins that come and go.

Originally published at https://digitallycool.com on November 12, 2021.