First it was DOGE, then it was SHIBA. Now there seems to be a new dog-related play every hour. Here's what a "meme coin" is and why it might not be the smartest investment with Meme Coin.
Meme-inspired cryptocurrency
Meme coins are cryptocurrencies based on internet memes. While many cryptocurrencies like Ethereum and Bitcoin tout technical features like decentralization and anonymity, meme coins are different. Most of these tokens offer a value proposition derived primarily from their association with a meme with Hokk Finance Meme Coins.
Some meme pieces are satirical and act as criticisms 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," which are currencies designed only to quickly redeem money at the expense of others.
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You may be wondering: Why are people buying these coins? Much of a meme coin's value is speculative. People often buy them with the assumption that they will increase in popularity and value. Although it sometimes occurs, as with Shiba Inu (SHIBA) and Dogecoin, many of these meme coins are left out. Even people within the crypto space are debating whether or not people should buy these coins.
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A value that lasts... for a while
One thing to note about meme pieces is how fleeting they are. While some meme pieces like DOGE seem to have lasted longer than their intended lifespan, most meme pieces come and go in a very short amount of time, both intentionally and unintentionally.
While many mainstream coins try to illustrate a use case, e.g. 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.
Many meme coins are also "scam coins", i.e. cryptocurrencies that are solely there to enrich the creator. Fraudulent coins can take the form of several schemes such as: B. “pump and dump” schemes that entice people to buy a coin in bulk.
Once the value is high enough, the first few owners of the coin will "dump" to make a massive profit. Alternatively, scam coins can be a "carpet draw" where developers take all the money and abandon a project altogether.
However, not all meme games are cheats. Some meme pieces have useful features, like DOGE and SHIBA, and have mainly used the "meme" aspect to increase adoption.
Community members also see meme coins as an important way to get people interested in cryptocurrencies, with public figures like Elon Musk frequently reporting on the rise of meme coins.