As we witness the development of the Metaverse, it is easy to see how something like Meme coins has a place as we learn just what we can do with the powers of the internet and blockchains like Ethereum and online communities. And they’re growing in popularity. In fact, there are now over 1,300 meme coins available for purchase. As a growing number of investors look for crypto to buy now, meme coins become an interesting option. For example, Michael Graw states that “Pepe… hit a $1 billion market cap in May 2023 it sparked a mini meme coin revival with dozens of copycats, such as Pepe 2.0, AstroPepeX, McPepe, PepeAI and dozens – if not hundreds – of others being created in its wake.”
So, with all these new options on the market, what exactly are meme coins, and are they worth investing in?
What Exactly Are Meme Coins?
Memecoins are a more affordable form of cryptocurrency and a playful way of exploring not only the possibilities of cryptocurrency, but the opportunity that it presents to communities and individuals to step away from decentralized finance as the world of traditional banking presents us with ongoing red flags and we reach for alternatives. What better way to learn more about this form of currency than to play with it, albeit, cautiously.
Meme coins, as the name suggests, are a product of virtual humour, social media promotion, and celebrity endorsem*nts.
Here are some of the most successful Memecoins at the moment:
- Dogecoin: The original Memecoin was created in 2013 and is based on dog memes and deliberately bad English. While Dogecoin started out as a joke, it quickly became one of the leading coins today. Elon Musk’s involvement in the establishment of Dogecoin has propelled the Memecoin’s status making it among the top 10 largest cryptocurrencies available today with a market cap of slightly over $8 billion.
- Shiba Inu (SHIB) – Shibu Inu is a meme coin known as the ‘Doge Killer’ with a $5.4 billion market cap and a one-day advance of 75%. It was created in late 2020 and is now owned by millions of investors all around the world.
- Pepe – Despite being known for being volatile, Pepe is still one of the most popular tokens for crypto enthusiasts worldwide, known for a one-day advance of 40%. Pepe was launched in 2023 by a team in the USA.
Investment Cautions
As with any investment, caution is always wise before buying in. Instead of allowing impulse and personal preferences of a specific trend, funny image, or relatable vibe to be your reason for investing, ask yourself a few key questions and tick off your checklist as you go, once you’ve done some research.
Ask yourself: Does your chosen Memecoin have a transparent and efficient backing team behind it that gives it a level of legitimacy? Do they have clear communication channels in terms of social media, forums, and chat platforms? Do they provide regular updates and progress reports?
Pepe, for instance, is part of the same blockchain as Bitcoin and is therefore likely to be a more transparent and reliable meme coin for investors and traders. Look for similar coins that offer reputable and reliable characteristics. As all investors know, there are gains and losses with any investment. Being cautious is smart, especially with new coins that have not proven themselves yet.
Are Meme Coins Worth Investing In?
If meme coins are worth investing in, or not, is a personal choice. Investors should weigh the pros and cons of investing in meme coins and decide for themselves if the investment is worth it.
The value of meme coins is ultimately determined by what you value. If it’s always winning, then meme coins may not be for you, but if you value entertainment and excitement with the possibility of buying into the next big thing, then meme coins might be the perfect fit.
While some meme coins have had high returns in the past, others have failed. Overly cautious investors may steer clear of meme coins, while others may find new meme coin projects interesting and enticing. Any investment comes with its share of risk, and meme coins are no different.
Looking To The Future
As we look ahead, more and more meme coins are bound to be released as they gain popularity. It was recently reported that the meme coin market cap exceeded $50 billion, ahead of both NFTs and the Defi sectors.
The continued growth of meme coins will offer investors more choices and more opportunities to invest or learn about meme coins. As always, research before purchase to ensure a solid investment, and remember that meme coins are all about having fun and humour.
