This type of investment is risky, you should know that. But is it really an investment? a meme? Yes. We live in strange and funny times with Meme Tokens.
Dogecoin (DOGE) was just the first, and now it has a market cap of over $28.4 billion. Not bad for a joke with Hok Finance Meme Coins.
This coin was born in 2013, but 2021 has been outstanding for it. Dogecoin price is up over 14,500% since January and up to its last all-time high (ATH) back in May, at $0.73 per token [CoinMarketCap]. In other words, if someone bought $100 in DOGE as a joke in, say, December 2020 ($0.0030 per token), and then sold it on the ATH, they got around $24,333 in less than six months, without doing anything else.
Also Read : What is Hokk Finance
Well, let's say the same amount was bought even earlier, back in 2015. At that point, DOGE was at $0.00013 per token. If these years had been serviced and only sold in the ATH, they would have made about $561,537. That successfully answers the question why one should buy such a meme token, right? But that's not all.
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The era of emotions
To this day, many important investments are made based on certain emotions rather than anything rational. The proves this very well. In late January, a group of average Redditors declared war on Wall Street and the stock market's unethical practices. So they started buying 'disfavored stocks' en masse, suddenly raising their prices.
By doing so, they quickly ruined the short selling investments of some giant hedge funds. The reasons for this, more than the search for profit, are sheer revenge. The big hedge funds are widely blamed for the 2008 financial crisis because they created a horrific mortgage bubble that left millions of people homeless. No one has paid for it yet, and these Redditors seem to be trying to make amends with it.
Somehow Dogecoin was also involved in this movement. And the emotions aren't always negative, as the fun multiplied in the form of Dogecoin spin-offs.
The dog-like coins
A few other dog-like cryptocurrencies have appeared almost out of nowhere, and they have real investors. Perhaps the most popular to date is the Shiba Inu (SHIB) coin, but it's not the only one on the list.
People love memes, juicy DeFi apps, and profitable non-fungible tokens (NFTs). That's why the current dog-like tokens are focusing their efforts on all these applications. Most of them are Ethereum-based and also call themselves “Dogecoin killers”. They are focused on a very profitable market like DeFi (Decentralized Finance) so they have gained a decent amount of investment.
Shiba Inu has a market cap of over $3.1 billion [CoinMarketCap]. Your investors are eagerly awaiting the release of Shibaswap, a decentralized investment platform. Others, like Dogelon Mars (ELON), a clear hoax about Elon Musk's endorsement of Dogecoin, reached a market cap of over $29 million. In addition, “DeFi dishes” are also a kind of profitable meme.
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The DeFi courts
Within new DeFi apps with funny names, anyone can engage in so-called liquidity mining. This is what happens when you provide liquidity to an Automatic Market Maker (AMM). In other words, you deposit your tokens (usually in pairs - like DAI/ETH) in a liquidity pool provided by a .
Then other users (also called token swappers) can lend these tokens, exchange them or generally use them for their own purposes. These token swappers pay a small fee per transaction, and these fees are accumulated and later distributed among all Liquidity Providers (LP). This allows the investors to seed their funds and earn high interest and returns from arbitrage between them and their tokens.
Even if the platform is called Sushiswap or PancakeSwap. Two of the most popular, by the way, with market caps in excess of one and three billion respectively. Not to mention the promised profit percentage: over 130% per year.
The conclusion?
There are loads of meme coins, fun DeFi apps, and even memes being converted into NFTs (and sold at very expensive prices). This market hides a lot of money behind the laughs because this is the era of emotions. But don't think that you will become a millionaire easily. You can lose everything you risk because it is a highly volatile and unpredictable sector.
The usual advice is to do it for fun and wait for the best after a few years. This has worked for some previous investors, but that doesn't mean it will work for you.