Altcoins Talks - Cryptocurrency Forum
Further Discussions => Banks & Cryptos => Topic started by: Adams-Richard on August 16, 2022, 09:39:20 AM
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Image from the Cryptonomist
Bitcoin, Ethereum, and, Tether are one of the largest cryptocurrencies in terms of market capitalization, user base, and, popularity. However, the three mentioned decentralized money is not the only cryptocurrency circulating on the crypto market right now. For someone who spends a lot of time on crypto like me, chances are you've heard of Meme currency. Now, to anyone who is not a crypto savvy that I once was, let me tell you a piece of information about Meme coins.
Defining a Meme Coin
In late 2013, The world’s first Meme coin was created when Dogecoin was released after being created as a joke on the Doge Meme by two software engineers, Marcus and Jackson Palmer. They had no idea that their creation Dogecoin would become the world’s most popular Meme coin, awakening community sentiment that is beyond compare within the industry. In March 2022, there were more than 200 Meme coins circulated on the market. Dogecoin and Shiba Inu are the most Notable and traded Meme coins as of June 14, 2022.
I'm pretty sure I'm not the only one who was left stunned by the exponential growth and progress of Meme coins. As we all know, Most of these Meme cryptos are created based on jokes or Memes as we so like to call them. For the most part, they were introduced for fun and entertainment, hence, they were not seen as anything beyond this.
Is it Safe to Invest in Meme Coins? Is It Even a Good Investment?
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Image from Binance Academy
As everyone knows, Cryptocurrencies are inspired by collaborative investors and online platform trends. One of the reasons why Meme coins become so popular was when the business magnate and investor, Elon Musk promoted the use of Dogecoin. In addition to that, we have seen how he continues to post tweets about Dogecoin in 2022, including that one tweet in January where he declared that if McDonald's will start accepting Dogecoin as payment he would eat their famous Happy Meal on live TV. And since their engagement is primarily based on pop culture, they are tremendously volatile and vulnerable to rapid price fluctuations.
When a token becomes massive and its market price increases, normal investors may get on board, further bumping up its value. Popular online celebrities and influencers are also supporting to magnify and enhance the popularity of various Meme currencies.
Unlike Bitcoin, Meme coins often have a limitless supply. And because of that, it's not advisable to be financially dependent on Meme coins considering their immeSPAM BANble supply and volatility, they are fundamentally high-risk investments.
What Lies Ahead for Meme Coins
While It may not be easy to gain financial benefits from Meme-based tokens, we can't tell that the danger of investing in them will happen day and night. Also, since there are hundreds of Meme coins in the market, chances are some Meme coins may be very profitable over short periods and result in large returns.
The price of Dogecoin, for example, increased by 17.9% during the last 30 days. At the time of writing, Dogecoin’s market capitalization is roughly $9.7 billion and it has increased 5% against the U.S. dollar during the last 24 hours. In terms of global trade volume, $450 million worth of DOGE swaps took place during the last day. Since these currencies are so volatile, even the most modest investments may provide big returns.
To Sum it Up
I do agree that almost all of the Meme coins lack anything like fundamental value or unique use cases and are inherently risky at this point in time and very volatile. However, this does not imply that their fate has been decided considering that the fate of some Meme coins might be brighter due to a few trends. Still, they may never be able to achieve the same level of broad adoption as more cryptocurrencies like Bitcoin and Ethereum.
But how about you guys? What are your thoughts about Meme currency? Let me know your thoughts! Thank you for reading and I appreciate your thoughtful responses! As always, keep it classy and civilized, please!