Meme Coins: Bubble or Next Big Thing?

adminMay 4, 2024

16 7 minutes read

Meme Coins: Bubble or Next Big Thing? Do you ever imagine something whose fame was derived from fads on social media and internet memes ever becoming that famous? The moment is here, and it is accurate! This is the essence of meme coins: they are a novel form of cryptocurrency that has caused a stir in the market.

Although these meme cryptocurrencies may appear funny, they have caused unbelievable real-life events. In June 2021, a guy from California claimed that over $240,000 worth of Dogecoin was stolen from him in a phishing operation. An unnamed British woman became a millionaire in a matter of days after investing just $6.80 in the Meme cryptocurrency Safemoon in July 2021. The coin’s value soared well beyond expectations.

There is a dedicated following for these whimsical digital assets, such as Dogecoin and Shiba Inu. Because many conventional investors dismissed meme coins as nothing more than fleeting online trends, the meteoric rise in their value took them unawares. I don’t understand what the big deal is about meme money. Why should someone bother to educate themselves about cryptocurrencies if they have no intention of investing in them? No matter how you feel about them, they’re not going anywhere.

We at Coinz4u will go deep into the world of meme currencies. We will examine their history, rise to fame, and the pros and cons of investing in them. Additionally, we will discuss the most prevalent ones that you need to be cautious of.

What are Meme coins?

Imagine a digital currency whose value is determined not by innovation or use but by the popularity of online memes and trends. Because of this central idea, a new sort of cryptocurrency called meme crypto coins has recently shaken up the financial world. “MemeCoin” is a made-up cryptocurrency that skyrocketed in popularity on social media. Suppose enough people find it humorous, believe in the concept, and talk about it. In that case, MemeCoin’s value might grow exponentially despite its lack of practical application, similar to t. It is Dogecoin, which started as a meme but became real-world valuable thanks to its online popularity among social media and crypto enthusiasts.

The History of Meme Coins: Where Did They Come From?

Meme coins were first considered a spoof of more severe digital currencies. Nevertheless, their distinctive features and branding inspired by memes caused them to acquire a cult following swiftly. The ‘Doge’ meme helped propel Dogecoin, an early meme coin, to unprecedented popularity.

Meme coins’ impact on cryptocurrency grew with their meteoric rise to prominence. A flood of new meme coins appeared daily, and their prices fluctuated wildly as investors saw them as quick money. Meme currencies, though, haven’t been immune to problems either. High volatility, the possibility of fraud and scams, and regulatory crackdowns have all been challenges for them. Additionally, they have come under fire from certain industry professionals who believe they are exacerbating the crypto market’s bubble-like characteristics.

The Memecoin Evolution Timeline

2013: Birth of Dogecoin, featuring the iconic Doge internet meme.
2014: Dogecoin sponsors the Jamaican bobsleigh team at the Winter Olympics, gaining recognition for its community and charitable efforts.
2017: Ethereum’s ascent paved the way for meme-based tokens like PepeCash and Rare Pepe.
Late 2017: The ‘Crypto Craze’ era witnessed the emergence of numerous Memecoins, such as Garlicon and TrumpCoin, although with limited practical use.
Early 2018: The Memecoin bubble bursts during a cryptocurrency market downturn.
Late 2020: The rise of DeFi (Decentralized Finance) and NFTs (Non-Fungible Tokens) reignites interest in Memecoins, with tokens like YAM and MEME gaining popularity.
2021: The overall growth in the cryptocurrency market triggers a Memecoin resurgence, with Dogecoin, Shiba Inu, SafeMoon, and Baby Doge leading the charge.
2022: Memecoins, including popular ones like Dogecoin and Shiba Inu, experience substantial declines in value, aligning with the broader trend of cryptocurrency market decline.

What’s Behind the Memecoin Craze?

Meme coins continue to captivate uniquely, and you might have observed their meteoric rise in a surprising amount of time. Memecoins have stayed popular for so long because of how closely they are tied to online memes. This association makes them instantly recognizable and approachable, particularly to younger generations.

In addition, they have surpassed more conventional cryptocurrencies in popularity thanks to their mastery of social media. Certain notable meme currencies, including Dogecoin, Shiba Inu, and SafeMoon, have amassed a large social media following and even attracted influential people’s attention, dramatically enhancing their standing. Also, many investors have considered meme coins a possible way to make money, despite the lack of a defined use or purpose, because of the inherent uncertainty of cryptocurrencies. Dogecoin is a popular meme coin American musician Snoop Dogg openly supported a few years ago. This endorsement greatly influenced the incredible spike in the popularity of the coin.

Memecoin Controversies: Scams, Pump and Dumps, and More

Scams like these are rampant, which is a significant issue with meme coins. To deceive unsuspecting investors, con artists create phoney meme coins. They frequently capitalize on the buzz around Dogecoin and Shiba Inu, two popular meme coins, to make their phoney currencies look more official.

A Shocking Fact You Must Know

Con artists in 2021 created a phoney coin they called “DogeCoin Killer” and sold it as an alternative to Dogecoin. They used social media and other internet platforms to get people excited about the coin and invest in it. But as soon as people started putting their money into this fraudulent coin, the con artists took off with the funds, rendering the tokens worthless.

Another big problem with meme coins is the “pump and dump” tactics, wherein groups of people intentionally inflate the value of a meme coin and then sell their holdings once the price has peaked, leaving other investors with coins that aren’t worth anything. This kind of action can severely damage the meme currency industry’s credibility.

‘Pump and Dump’: A Trap

The 2021 introduction of the meme-coin “Save The Kids” (KIDS) is a prime example—the coin became famous after becoming widely used on Twitter and TikTok. A handful of well-known people even lent their support to it. A gang of sly persons had planned the coin’s release as part of a pump-and-dump scam. Many people lost a lot of money because this gang inflated the price of the coin and then sold their holdings, which caused the coin’s value to plummet.

Social media have significantly influenced the enthusiasm for meme coins. Users’ posting of memes, videos, and posts on meme coins on platforms like Reddit, TikTok, and Twitter has contributed significantly to their spread. The Dogecoin community, for instance, has done a lot to raise awareness of the coin by making memes and even sponsoring NASCAR cars.

On the other hand, many people can now easily invest in meme coins through social media and programs like Robinhood. Part of the excitement is due to how easy it is to get your hands on it. Buying these coins is now possible for everyone with an internet-connected smartphone. Meme coins have also been helped with their rise to prominence by prominent social media personalities like Elon Musk. Rumour has it that a handful of them attempted some audacious market manipulation.

Meme Coin Investment: Risks and Rewards

Risks:

Here are a few essential points you should keep in mind.

Meme coins are highly volatile. Their value can go up or down in just hours or days, making them a risky investment.
Unlike traditional cryptocurrencies, meme coins often lack real-world utility, meaning they may not have much long-term value.
Memecoins can be prone to scams, as scammers may create a fake meme coin to take advantage of the hype and make a quick profit.

Rewards:

If you are a meme coin investor, Here are the attractive rewards you can expect.

Some meme coins have seen massive gains in value in a short amount of time, leading to significant profits for early investors.
The hype around meme coins can attract attention and investment to the broader cryptocurrency market, leading to increased demand and potentially higher prices for traditional cryptocurrencies like Bitcoin and Ethereum.
Meme coins can be a fun and light-hearted way to invest in cryptocurrency and can provide a sense of community and belonging among investors.

Meme coin Regulation

Many countries are now paying attention to meme coins because of their recent surge in popularity. Regulating meme currencies is an ongoing process in certain nations, while others are just beginning to think about it. The Turkish government has forbidden all forms of cryptocurrency, including meme-coins and any payment processors, from handling cryptocurrency-related transactions. The United States and other nations are still figuring out how to govern meme coinage.

Here are a few interesting points you should know.

Meme coins are not recognized as legal tender or regulated like traditional currency.
Some countries, such as the US, have warned about the risks of meme coin investing, while others, such as China, have banned them.
The regulatory landscape for meme coins is constantly changing and can be challenging to keep up with.
Governments are concerned about meme coin fraud and its use in illicit activities.
Some meme coin projects, such as Dogecoin, have taken steps to comply with regulations, such as registering as securities offerings.
Lack of regulation has led to increased scams and Ponzi schemes targeting investors, such as the ‘Save The Kids’ token.

Meme Coin Success Stories: What You Should You Look Out For

Here are some of the most valuable and popular meme coins you must watch.

Dogecoin

Created in 2013 as a joke, Dogecoin quickly gained a following and has become one of the most recognizable meme coins. It reached a market cap of over $80 billion at its peak, and business leaders like Elon Musk have endorsed it.

Shiba Inu

Launched in 2020 as a playful nod to Dogecoin, Shiba Inu has gained a large following and reached a market cap of over $13 billion. The developers of the coin have even created a decentralized exchange called ShibaSwap.

Safemoon

Launched in 2021, Safemoon has gained a significant following. It has a unique feature that charges a fee on each transaction, which is redistributed to token holders.

Pepe Coin

Officially launched in mid-April 2023, PEPE is one of a different variety than the popular meme coins Doge or Shiba Inu. The coin is based on the Pepe the Frog meme, created by Matt Furie in 2005.

Conclusion

We don’t know what the future holds for the memecoin market because it is constantly growing and evolving. Fascinatingly, meme currencies could be utilized in decentralized banking and other creative financial applications thanks to blockchain technology. What happens next regarding regulation and government policy regarding meme coins and their potential integration into mainstream finance will be fascinating to watch as the industry develops. Regardless of your stance on the matter, it is undeniable that meme coins have garnered global interest and will likely remain so for the foreseeable future.