First it was DOGE, then SHIBA. Now it seems like every hour there is a new coin related to dogs. Here's what a "meme coin" is, and why it might not be the smartest investment with Meme Token.
Meme-inspired cryptocurrency
Meme coins are cryptocurrencies based on internet memes. While many cryptocurrencies like Ethereum and Bitcoin advertise technical features like decentralization and anonymity, meme coins are different. Most of these tokens feature a value proposition derived primarily from their association with a meme.
Some meme coins are satirical and act as critiques of cryptocurrencies or other parts of internet culture. For example, Dogecoin (DOGE), one of the top ten cryptocurrencies in the world, started out as a “joke”; from its creator. On the other hand, some meme coins are "scam coins". these are currencies designed solely to make quick bucks at the expense of others.
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What is Cryptocurrency?
You may be wondering: Why are people buying these coins? Much of a meme coin's value is speculative. People often buy these on the assumption that they will increase in popularity and value. While this sometimes pays off, e.g. B. Shiba Innu (SHIBA) and Dogecoin, many of these meme coins fall by the wayside. Even people within the crypto space are debating whether or not people should buy these coins.
Value That Lasts... for a while
One thing to note about meme coins is how short-lived they are. While some meme coins like DOGE appear to outlive their expected lifespan, most meme coins come and go in a very short amount of time, both intentionally and unintentionally. While many mainstream coins attempt to illustrate a use case such as an alternative financial instrument or a method of exchange in a video game, meme coins typically have no practical use other than buying and selling.
Also Read: What is Hokk Finance
< p>Many meme coins are also “scam coins” which are cryptocurrencies that exist solely to enrich the creator. Fraud coins can take the form of several schemes such as: e.g. "pump and dump"; Systems that encourage people to buy a coin in bulk. Once the value is high enough, early holders of the coin will “dump” to make a massive profit. Alternatively, cheating coins can be a "rug pull"; where developers take all the money and abandon a project entirely Hokk Finance Meme Coins.
However, not all meme coins are scams. Some meme coins have useful features, like DOGE and SHIBA, and mainly have the “meme” aspect to increase adoption. Community members also view meme coins as an important way to get people interested in cryptocurrencies, with public figures like Elon Musk often signaling to promote meme coins.
A Few meme coins
Reading through a list of meme-based altcoins may feel surreal. For the skeptic, DOGE already sounds a little strange, since its entire visual identity is based on a decades-old internet reaction photo. However, DOGE doesn't even scratch the surface. Meme coins are trying to milk every internet trend imaginable, including other meme coins.