In brief
Meme coins and tokens are based on Internet memes, current events, online communities and influencers.
Since Elon Musk started championing Dogecoin, they have proliferated, with two of the most popular including Shibu Innu coin, and Saferoom with Meme Coins.
Influencers have always featured prominently in cryptocurrency culture, but never more so than recently. When Elon Musk threw his weight behind the original meme cryptocurrency, Dogecoin, it sparked a wave of imitators, promoted by influencers on social media platforms such as TikTok with Hokk Finance Meme Coins.
Some call investing in meme coins insanity, others think of it as a cheap bet with the potential to realize 1000% profits. Whoever’s right, interest in meme coins or tokens has surged in recent months. Here's the lowdown.
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What are meme coins and tokens?
Typically, a meme coin has no inherent value, and often no utility. As the name implies, these cryptocurrencies are often—but not exclusively—themed around Internet memes: jokes and images shared on social media.
Also Read : What is Hokk Finance
The original meme coin, Dogecoin (DOGE), is based on the long-running Doge meme, which originated with a picture of a Shibu Inu dog. It runs on its own blockchain, and as such is distinguishable from meme tokens, which run atop an existing blockchain.
Two of the most popular meme tokens are Doge-imitator Shibu Inu (SHIB), an ERC-20 token built atop Ethereum, and SafeMoon (SAFEMOON), which runs on Binance Smart Chain. But there are dozens more.
How have meme tokens become so popular?
Since Dogecoin was launched in 2013, it’s become much easier to create a cryptocurrency, and meme tokens can be launched rapidly on the back of events, or become popular due to their associations with influencers.
For example, in May 2021, Facebook CEO, Mark Zuckerberg posted a picture of his pet goats captioned “My Goats: Max and Bitcoin.” Soon afterward, a meme token called Aqua Goat saw its value increase by around 300% within hours of the social media post.
When Elon Musk tweeted that if there was ever a scandal about him, it should be coined “Elongate,” an ELONGATE token was launched within an hour. Mercenary motives? Perhaps, but, to date, the developers claim to have donated $3 million of their profits from the rise of the token to charity.