What Are Meme Coins? Are They Worth Investing In?

When trading meme coins, it’s crucial to be aware of common scams that can lead to significant financial losses. Meme coins, due to their often unregulated nature and the hype-driven environment surrounding them, are particularly susceptible to various fraudulent schemes. Understanding these scams can help users navigate the risks and avoid falling victim to them. In its early days, Dogecoin was mainly used for ‘tipping’, which is the practise of rewarding people on the internet for doing a good deed. Now, people buy meme coins for a variety of reasons, driven primarily by the unique blend of humour, community engagement, and the speculative opportunity they offer. Dogecoin (DOGE), the original meme coin and category leader by market capitalisation, was created in 2013 as a joke to satirise the hype around Bitcoin and other mainstream cryptocurrencies.

Bone ShibaSwap (BONE)

As of the date this article was written, the author does not own cryptocurrency. There are more than 135.5 billion coins in circulation for DOGE, and every minute a successful miner receives about 10,000 DOGE, worth roughly $660. That’s a staggering contrast in issuance volume compared with Bitcoin, where approximately 6.25 BTC—worth about $143,000—is mined every 10 minutes.

1. Despite its ups and downs over the years, Dogecoin has consistently maintained a passionate community and, at one point, surpassed Bitcoin in daily transaction volume.
2. So while Elon Musk (or some other celebrity) may tweet about Dogecoin and send its value soaring tomorrow, it could just as easily fade away into obscurity.
3. Dogecoin (DOGE), the original meme coin and category leader by market capitalisation, was created in 2013 as a joke to satirise the hype around Bitcoin and other mainstream cryptocurrencies.
4. Shiba Inu (SHIB) launched two years ago as the “Dogecoin killer.” The crypto even imitates the Dogecoin branding in so far as using the same Shiba dog.

Bone ShibaSwap (BONE) is one of the tokens that how to buy bitcoin with neteller could reach $1 in 2024, according to CoinCodex.

Coq Inu – The Avalanche community’s response to the meme coin frenzy

He is also interested in NFTs as a unique digital medium, especially in the context of generative art. Popcat is a meme coin on the Solana blockchain that’s inspired by an internet meme featuring a heavily a beginners guide to becoming a crypto miner 2020 edited image of a cat opening and closing its mouth. Moreover, users have the option to invest their BONK in a range of decentralized finance instruments to generate returns, participate in risk-free lotteries, and engage in other activities.

Popcat – Solana meme coin based on a viral cat image

By itself, the POPCAT token is a straightforward meme coin and doesn’t have any utility other than its viral appeal and humor. The websites for most meme coins advertise that they are meme coins, not meant for anything other than having fun. More popular meme coins claim to have uses (called utility) and point to the fact that they are accepted by some merchants.

Musk has been involved with Bitcoin and crypto since around 2019 and 2020 and has even spearheaded Tesla accepting Bitcoin payments (at least for a few months). Musk is notorious for tweeting about cryptocurrencies like Dogecoin and drastically increasing or decreasing their value. This has earned him both love and hate from the crypto community, and many have questioned his seeming price manipulations, but he continues to be an influential figure in the space. Dogecoin’s explosion of popularity led to an ever-growing number of dog coins like Baby Doge Coin, SHIBA INU, Shiba BSC, and many more.

Many meme coins are often held by a small group of people who own large concentrations. According to the data from IntotheBlock, 48% of DOGE is controlled by seven crypto wallets. That number is even more stark for SHIB, where 69% of ownership is concentrated among 15 wallets.

When assessing a crypto asset, it’s essential for you to do your research and due diligence to make the best possible judgement, as any purchases shall be your sole responsibility. While no single factor guarantees a coin’s legitimacy, a combination of thorough research and cautious scepticism can help traders avoid scams and identify projects with genuine potential. Read our University article about Dogecoin to learn more about the meme coin that started it all. BOME is issued on the Solana blockchain and utilizes Arweave for decentralized storage via IPFS. An expansion to the Bitcoin blockchain through inscriptions is also currently in development, according to the BOOK OF MEME team.

A meme coin is a cryptocurrency that’s predominantly based on memes and internet humor instead of technology or utility. Some of the most popular examples of meme coins include Dogecoin, Shiba Inu, and Pepe. Investing in meme coins could be potentially lucrative if you have good timing and a keen eye for which projects have a good chance of surviving. However, cryptocurrency cfd trading 2020 we don’t recommend buying meme coins if you have a low-risk tolerance and aren’t prepared to lose a significant chunk of your investment in case you make a wrong bet. Meme is currently the smallest token on our list in terms of market cap, as it has a market capitalization of under $500 million. Although this is certainly not a low valuation in a vacuum, Meme appears to be undervalued compared to other meme coins and tokens, given the impressive pedigree of the team behind it.