Meme coins have been all the rage recently, so we’ve compiled all the necessary information to understand them. Meme coins have entirely transformed the cryptocurrency industry and are now an integral component. It’s probably fair to say that Dogecoin was the meme coin that started it all, igniting a movement that would eventually yield a multi-billion dollar industry and an unparalleled level of community devotion. Meme coins like Shiba Inu (SHIB) have emerged and are now competing with Dogecoin for attention. An extensive examination of meme coins follows their definition, differences from traditional cryptocurrencies, and the top meme coins. To ensure your safety, let’s go right in.
A Meme Coin: What Is It?
First, a subset of the cryptocurrency market is known as meme coins. Meme coins, in their most basic definition, are digital currencies that share a comedic quality or seem to have their roots in an online meme. Meme coins are a kind of cryptocurrency, although not every cryptocurrency is a meme coin. A solid place to begin is with the above rule of thumb, albeit it is cultivated in scope. Therefore, a meme coin incorporates elements of meme culture into its design, as the name implies. Certain groups are going so far as to include memes in the technical specifications of their coin. Take the meme numbers 4:20 and 69 as an example; they might set the maximum supply at 69 billion tokens or 420 billion tokens.
Variety of Meme Coins
Examples of popular cryptocurrencies are Dogecoin (DOGE), Shiba Inu (SHIB), and Floki Inu (FLOKI). All are doge meme-themed. Not only that. Many meme coins and cryptocurrency initiatives, including non-fungible tokens (NFTs), revolve around the internet meme Pepe the Frog. The largest project is PEPE. Like other cryptocurrencies, Meme coins are created on layer-one networks like Ethereum, Solana, and Polygon. Some, like Dogecoin, have their networks. Most coins focus on functionality. However, meme coins are becoming popular due to the explosive dissemination of memes. Thus, it is a crucial disclaimer. Meme coins are dangerous and erratic. Users should consult a specialist before buying meme coins. Never invest more than you can lose.
Meme Coins Work: How?
With minor tweaks, meme coins function similarly to standard currencies established on layer-one blockchains. Most adhere to the Ethereum smart contract standard, specifically the ERC-20. Dogecoin is the clear outlier. It uses its blockchain technology, which is similar to Bitcoin’s. Unlike Bitcoin, which has a limited supply, this cryptocurrency is based on a proof-of-work consensus method but has an infinite inflationary supply. Other meme coins like Shiba Inu (SHIB) are launching side projects and ecosystems to provide value and engage consumers. However, in most cases, the strength of the meme on which a meme coin is built attracts investors and helps establish a dedicated fan base.
How Secure Are Meme Coins?
The value of meme coins, unlike traditional cryptocurrencies, can fluctuate wildly depending on how popular the underlying meme is. Here, we have the PEPE coin. It’s worth skyrocketing in 2023, going from zero to about $2 billion monthly. A growth rate of this magnitude is almost beyond our comprehension. The value of the meme coin fell more than 70% from its high point a few weeks later. The dangers and unpredictable nature of meme currencies should now be more transparent. Compared to other cryptocurrencies, their level of technical security is on par. A thorough investigation is essential for investors who wish to protect their funds from scams. Be very careful since the meme coin field is a whole of rug-pulls. Reading these guides is also highly advised:
Common Meme Coin Features
There are certain similarities between meme coins and other cryptocurrencies, even though they are designed differently from other cryptocurrencies. Many of them are constructed on top of a layer-one network. All of them are based on a hilarious element or a meme that is widely used on the internet now. Most of them place a significant emphasis on the social aspect of development. Among the most notable are communities that adhere to meme currencies. Their prices tend to be somewhat volatile, generally speaking.
The Most Valuable Meme Coins
A new meme currency is minted daily, and there are probably hundreds of meme coins in circulation. Nevertheless, a few have been able to endure the test of time or have blasted into the mainstream, strengthening their position as a significant meme coin. Please see the three samples below of the most popular meme currencies. Regarding meme coins, Dogecoin (DOGE) was the first. It all started as a joke in late 2013, but today, ten years later, in 2023, it has the most significant market valuation of any meme coin. Jackson Palmer and Billy Marcus made it. According to the former, he liquidated all of his DOGE holdings in 2015.
Discover five less-known facts about Dogecoin.
The Dogecoin community has been highly supportive since Elon Musk began keeping tabs on the project and even contributed to its development. He has an emissary working for the improvement of Dogecoin as a member of the Dogecoin Foundation alongside Vitalik Buterin, another notable personality in the cryptocurrency sector. It uses a proof-of-work consensus process, similar to Bitcoin’s, and is one of the few meme coins with its blockchain. On the other hand, Dogecoin’s design and supply are both inflationary.
SHIB Coin
Though it debuted much later, Shiba Inu (SHIB) was likely influenced by Dogecoin. The Doge meme is also crucial to it. Shiba Inu (SHIB) is “an experiment in decentralized spontaneous community building,” as stated in its “woofpaper.”Since SHIB is now the second-largest meme coin in the world in terms of community size and market capitalization, it’s reasonable to conclude that the experiment was fruitful. The group is hard at work on a metaverse-based platform, a plethora of NFT projects, and a decentralized exchange they call ShibaSwap, among many other things. During the bull market of 2021, SHIB’s popularity skyrocketed, and the cryptocurrency eventually reached a market cap of more than $70 billion. It only shows how popular meme currencies may become, even though it’s far lower than that amount (as with most coins).
PEPE Coin
The most recent meme coin to go viral is the PEPE coin, which has grown extremely popular. The cryptocurrency was initially introduced in April of 2023, and by the time the month came to a close and the next one began, its market capitalization had already reached a staggering number of $2 billion.PEPE was listed on all leading exchanges, including Binance, due to the great interest in the cryptocurrency.PEPE is a cryptocurrency supposed to be “the most memeable meme coin in existence.” It uses the iconic meme known as Pepe the Frog as its inspiration. We have created a comprehensive video explainer to watch if you want to learn more.
The Most Common Questions
Now that we’ve covered everything mentioned above let’s look at some of the questions that are asked the most frequently.
How does Meme Coin Work?
In contrast to standard altcoins, most meme currencies do not serve any particular purpose. Instead, they are utilized as instruments to construct enormous and fervently committed communities, which frequently involve the participation of hundreds of thousands, if not millions, of individuals. On the other hand, certain meme currencies, such as DOGE, are utilized as a relatively widespread payment method.
What Defines a Meme Coin?
Meme coins are easily recognizable by their reliance on well-known internet memes for their overall concept and marketing approach. In their very nature, they also contain pretty comical components.
When will a Meme Coin Reach $1?
At this point, we do not know which meme coin will eventually hit $1. The only meme coin that has come close to surpassing $1 so far is the DOGE cryptocurrency. CoinGecko reports that the price has reached its all-time high of $0.73.
Reality of Meme Coins?
Coins based on memes are just as genuine as any other cryptocurrency. Nevertheless, they are considerably distinct from one another and far more volatile. You must always make sure to conduct a sufficient study before engaging with any of the meme currencies.
Are Meme Coins Sustainable?
Only time will tell which meme coins will endure and which ones will not. Dogecoin (DOGE) is the meme coin that has been around the longest but also the oldest. Since its inception in 2013, it has maintained its position as the most valuable meme coin in market capitalization.
Conclusion
Meme coins appear to be here to stay if history is any indication. Their longevity is anyone’s guess, yet they’re so integral to crypto culture that life seems strange without them. If the correct trigger exists, meme currencies have demonstrated that it is feasible to quickly construct incredibly loyal and committed communities. Additionally, they have brought attention to the industry’s volatility in a manner that other cryptocurrencies may find difficult to replicate. Whether you’re for or against meme coins, their market is undoubtedly one of the most active in the business.