Dogecoin and Shiba Inu have been all the rage in the crypto world since they blew up in 2021. But are they cryptos you should invest in? And what even are they?
In the cryptocurrency world, there are several types of tokens. There are your standard cryptos like Bitcoin and Ethereum, there are utility tokens associated with specific projects like TON, there are stablecoins like Tether, and, of course, there are meme coins.
Meme coins occupy a very unique place in the cryptocurrency sector. They are the embodiment of the community, the love of pop culture, and the creativity that has kept the industry going for so long. And in recent years, they have become more popular than ever. But what are meme coins in the first place? And are they worth investing in?
Navigation of Contents
What are Meme Coins?
The simplest way to explain meme coins is that they are cryptocurrencies that are based on specific memes, pop culture references, and internet lore. Memes and inside jokes have been a part of the internet experience since the days of chatrooms. Meme coins are essentially a way to honour and reference them and connect the communities that engage with this content.
As much as they can be seen as playful jokes, many meme coins have a complex and rich lore behind them. Take Dogecoin, the most popular meme coin. While those out of the loop might not know, it is based on the popular meme of a Shiba Inu dog that seems to be giving the viewer the side-eye.
Even though the currency was created as a joke, the blockchain it runs on offers a few advantages. Unlimited supply and a low price are just a few noticeable benefits (source: https://insidebitcoins.com/buy-cryptocurrency/best-meme-coins).
Other meme coins like the Shiba Inu token are also referencing this, and other popular memes.
The $PEPE meme coin references the Pepe the Frog meme that has been used online for years. The $KENNY token is a reference to a South Park character who is known to be ill-fated and is constantly getting killed or injured. To an outsider, it might be confusing why meme coins exist in the first place. The easiest reason is because they can.
Many meme coins have solid communities and utility behind them and could exist and thrive without being based on memes. But many of their creators like these memes and simply think it's more fun to create a project on something they like. Meme coins also tend to be more eye-catching. Ask yourself, which catches your eye more, $XYZ or $DOUBLECHEESEBURGER?
Meme tokes, just like memes themselves, are designed to grab your attention, shock you, and make you laugh. Plus, creating a meme token is a great way to tap into existing pop culture fanbases. By creating $KENNY, for example, you get the attention of South Park fans, those who like Kenny as a character, people who like memes as a whole, and much more. Considering how competitive the crypto space is already, many entrepreneurs will embrace things that will give them an edge in the market.
And while meme coins have attracted a lot of mockery and criticism over the years, they continue to exist and many continue to succeed. It seems like as long as memes and internet humour exist, there will always be a space for meme coins.
Are They Worth Investing In?
The rise of meme coins represents an interesting debacle for crypto investors; to buy or not to buy? The best way to decide this is to remember that the biggest difference between meme coins and your ‘regular’ crypto is the fact that they have lore and memes behind them. Just like with ‘regular’ coins, there are good ones and shitcoins. In fact, many meme coins are very much worth investing in and can be profitable long term.
And how do you identify the meme coins worth investing in? First, consider its use cases and underlying blockchain. Is the blockchain able to serve as the foundation for building applications? Can the token be used for a utility like cross-border transactions or within a gaming universe?
If the blockchain has practical use, it will likely survive into the future and the token will remain valuable. Remember that the meme factor should not be the only selling point of the token. If it is, people will get bored and move on to the next thing and there goes your investment.
It is worth noting that meme coins might be a good investment if there is a timely pop culture moment going on. Let’s say, for example, that the Pepe the Frog meme is gaining a lot of popularity around the world. Investing in Pepe-related tokens right before this happens will probably see you turn a profit.
When it comes to investing in meme coins, it is important to either not get swept up by the hype and invest with as much discernment and caution as you would for any other token. Or you should invest with a view to profiting from the hype at just the right time.
Meme tokens represent, in many ways, the spirit of cryptocurrency. They are funny, community-driven, and with a bit of luck, maybe even profitable.