Digital money has long been an integral part of our lives. Fresh statistics show that more than 600 million people from different corners of our planet use cryptocurrency. This figure is really impressive when compared to the fact that ten years ago, blockchain technology was taken seriously by almost nobody.
You may have heard that today, there are approximately 300,000 different cryptocurrencies around the world. Among them are different variations, including Bitcoin, altcoins, stablecoins, and tokens. However, experts have identified another category of cryptocurrencies called memes. About what it is, how it works, and how it differs from the usual coins, you will learn in this article below.
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Crypto Meme Coin – What Is It?
Crypto meme coin refers to a new style of a cryptocurrency which has been created from an internet meme or just for fun. Meme coins are relatively new digital assets that have gained popularity in recent times. Most of the popular meme coins include Dogecoin and Shiba Inu.
Like other cryptocurrencies, meme coins operate on certain principles and dynamics, such as being built on the blockchain, whose function is to enable users to buy, sell, or trade these coins. However, there’s a major difference: most meme coins do not have the real-world application that Bitcoin and Ethereum do. For example, Dogecoin was launched in 2013 as a meme, mimicking the speculation in the market for crypto assets. It has the famous «doge» meme, a Japanese breed of dogs known for their resemblance to foxes, as its logo. Although it originated as a meme currency, Dogecoin amassed a strong and active community on several social platforms and increased its price by almost thirty times in 2021. First of all, meme coins exist thanks to their humoristic and entertaining aspect. Cryptos and investing subjects can sometimes sound overly formal and can make new investors feel edgy.
Furthermore, meme coin communities participate in charity drives and tipping of coins to members of the community. This makes it feel more like everyone is being charitable, which is not the case with venture capitalist investors. The endearing communities are also instrumental in promoting awareness and use of other low popularity meme coins.
Critics also may challenge meme coins because they may not sustain themselves in the long run. However, some of the meme coins have their brands and communities that exist and are strong at this point. It remains for people to invest in meme coins directly or follow them for fun, and the buzz for such tokens remains strong in the crypto market.
Why are Meme Coins Associated with Risk?
As you know, in any field of activity, people are divided into several groups. Cryptocurrency is no exception because people’s opinions here are separated into two sides – those who have a positive attitude toward meme coins and those who do not believe in their success. Usually, such a group of people are called crypto skeptics. On different forums, you can often find them saying that crypto meme coins are investments with a particularly high-risk index. Is this really the case?
Cryptocurrencies based on memes have been trending for the last few years, leveraging the initial energy and absurdity of the idea to bring substantial profits for investors. However, since they are jokes and not professionals, meme coins lack the substance, importance, and worth that makes them very high-risk investments.
The main downside to meme coins, though, is the high unpredictability of their price. As it has been observed, most meme coins are anchored with extremely negligible or no utility behind them. Their price is not influenced by any realistic factors, but rather, is set through guesswork or the popularity they get on social media. This makes them vulnerable to very large slides and big sell-offs could occur at any given time. Even a minor loss of interest or any bad publicity for a meme coin can cause its value to diminish at an alarming rate.
This volatility risk is even highly applicable when it comes to new and small-cap meme coins. Whereas there are more popular or established ones, such as DOGE or SHIB, which have garnered some level of recognition and trust from users, other meme coins could start trending. Investing in such coins is like speculation, as the value of these coins can plummet and the bottom dropped any time. While the incredible returns some of them experience from investing means meme coins are very attractive, one has to think twice before risking their money on these coins.
Benefits of Coins Inspired by Memes
While some dismiss meme coins as a silly fad not to be taken seriously, there are real benefits to these new types of assets. We have collected useful sides of such coins that are built on jokes or in honor of famous personalities.
- An interesting new category of asset. Meme coins bring back some joy into the otherwise technical and mostly serious space of the crypto market. They have brought in many new investors who might be interested after finding pictures posted on social media platforms. They are a completely new class of highly risky financial instruments that have not existed all this time.
- Potential gains during moments of high popularity. The volatility witnessed in Dogecoin over the past few years is an excellent example of how investors can make insane profits during those times when a meme coin gains immense traction and is at the crest of its hype.
- Building a vibrant community of investors. Meme coins foster and encourage retail investors at the helm to form groups in order to invest in their coins. These social movements feel authentic to have social identification and cohesiveness since fans rally together online for the promotion of their coins.
Meme coins, in general, are highly unregulated and extremely unpredictable, which can be both a positive and negative aspect of them. However, people want something fun, entertaining, and exciting to invest in, so meme coins seem to provide that solution.
The Best Crypto Meme Coins in 2024
It may seem a surprise for many people that today, there are more than a thousand crypto meme coins. All of them are represented on the popular CoinMarketCap platform. However, most of them are virtually without activity. Among the powerful cryptocurrencies inspired by memes, there are about 60 different coins that are actively used by people from all over the planet. Below are collected five crypto meme coins that are relevant in 2024.
1. Dogecoin
Obviously, the first place on the list of popular crypto meme coins belongs to Dogecoin. While the term meme coin has been around since 2013, Dogecoin is by far the most popular and well-known example of the same. Initially, it was more of a meme, it gained more prominence when celebs like Elon Musk shared it. This awareness aided DOGE in attaining its highest value of $0.73 in the year 2021.
Despite the crash in the beginning of 2022 and the current situation with the crypto market, Dogecoin still has a very active community and actually has practical applications. In 2021 SpaceX revealed that they are planning to send a satellite to orbit called DOGE-1 and it will be funded using this meme currency. Actually, this crypto meme coin is actively used by regular users as a tip for waiters, bartenders and other people.
2. Shiba Inu
Originally being launched at the end of 2020 as the number one Dogecoin competitor, Shiba Inu quickly climbed to a billion-dollar market cap. Just like Dogecoin, Shiba Inu has a new purpose: to add value to the currency. The trading platform of ShibaSwap offers options such as dig, swap, and bury for SHIB tokens. Of course, the group behind SHIB also keeps on developing other entrepreneurial concepts, such as launching an NFT art or introducing Shi – a Layer-2 payment platform. The current value of one Shiba Inu coin is $0.000017.
3. Pepe
Using the image of the famous internet meme – Pepe the Frog, Pepe Coin stands out from the rest of the meme coins due to its well-established branding. It began in early 2022 and gained the attention of enthusiasts who would like to engage in the cause of Pepe. The major benefit that Pepe Coin has over other meme coins is its purpose. The goal of Pepe Coin is to be used for micropayments, specifically for tipping purposes on various social networks and it has plans to integrate with the likes of Reddit, Twitter, and Discord, among others. The capitalization of this famous crypto meme coin has surpassed the $5 billion mark in 2024.
4. Floki
You have already heard more than once that billionaire Elon Musk is closely connected with cryptocurrency. He actively promotes this sphere in social networks. The next meme currency on our list was inspired by the American businessman’s favorite dog, named Floki. The initial Floki community has been highly engaged and willing to make the community goal by funding more than $2,000,000 for FLOKI billboards around the globe. Looking at the case of Floki as the project continues to implement its 2024 utility-based roadmap, the token has the potential to become one of the best meme coin investments for future years.
5. Bonk
Another prime example of crypto meme coins that are in demand among users from all over the world is Bonk. This is a relatively young currency, as it officially appeared only at the end of 2022. However, during its existence, the Bonk coin has already managed to exceed a market capitalization of $1.5 billion. Bonk cryptocurrency works in the Solana network, so it is characterized by fast speed and low transaction fees.
Where Can You Buy Crypto Meme Coins?
As mentioned above, coins inspired by jokes, memes, or Internet heroes are not technically different from other cryptocurrencies. That is why they are also freely available on major platforms such as the Swapzone crypto exchange. Users can easily buy, exchange, or sell meme coins. To do so, you need to have a verified account on the exchange.
Final Thoughts
The newer tokens, such as Dogecoins & Shiba Inu, have placed the community in a fix regarding their sustainability. Such meme cryptocurrencies were popular last years due to social media buzz and support by personalities such as Elon Musk. However, they do not have the practical functionality of other leading currencies with cryptocurrencies, such as Bitcoin and Ethereum.
Obviously, digital money experts are betting on cryptocurrencies that are characterized by stability and reliability. However, crypto meme coins will exist and develop further. They are becoming more popular due to the emergence of Web3 games on the network. Some developers reward active game users with such tokens and coins.