Memecoin

Memecoin

Memecoins are the crypto tokens created as a joke or meme and claim to offer huge gains to holders.

What Is a Memecoin?

Memecoin is the crypto analog of memes and came into being as a cheaper Bitcoin substitute. The first memecoin, named Dogecoin, was based on the famous Shiba Inu meme. Apart from Dogecoin, some of the most popular memecoins include Dogelon Mars, Shiba Inu, Floki Inu, and Samoyedcoin.

The Memecoin Boom

Similar to its theme, memecoins used to be taken as a joke in the world of crypto trading. However, endorsement by Elon Musk gave it an unanticipated boost. The value of Dogecoin shot up overnight when Musk started tweeting about the crypto asset.

Besides Musk, Snoop Dogg and Mark Cuban have also expressed interest in the memecoin, making it popular among the community.

Within a few months, the memecoin secured its place in the top 10 cryptocurrencies by market cap. By the end of 2021, Shiba Inu, another popular memecoin made its way to the top 10 list. Chief Revenue Officer of Zeb Pay commented on the growing memecoin status:

“The surge in volumes that the token [Shiba Inu] has been witnessing can also be attributed to the FOMO that typically arises as interest peaks, and traders rush to take part in the rally as a means to book profits.’’

Just at the culmination of the GameStop frenzy, traders were eager to find a new obsession. Reddit started booming with memecoin discussions, especially as endorsements from billionaires started coming in. Since its inception in 2013, Dogecoin aimed at dethroning Bitcoin by being less expensive and greater in circulation, having a supply of around a quadrillion coins!

The deVere Group’s CEO, Nigel Green, said:

“In the same way that the GameStop frenzy was pitched as a battle-play of ‘Wall Street versus The Little Guy’, Dogecoin is being pitched as a battle-play against the well-established crypto giants like Bitcoin.”

Another aspect of the memecoin boom is that it is seen as an opportunity by retail investors to make the most out of their small investments because Bitcoin is a bit far-fetched for small investors and many new traders, given its ever-growing value. Memecoins’ faster minting and limitless coin acquisition continue to attract more traders. Earlier this year, Dogecoin surpassed giants such as eBay, Kraft Heinz, and many more in market value.

What Do Memecoins Offer?

As per Nasdaq, memecoins are just a means of making some money but the currency is yet to offer a real-world utility like Ethereum and Bitcoin. If the current endorsement of memecoins by Musk and other influencers continues, the surge may still be able to benefit traders in the short term. While the popularity of the currency continues to increase, memecoins are still a more feasible option for new investors to make small gains.

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