You know Bitcoin, but what about Dogecoin and Shiba Inu? Meme coins have become increasingly popular (and volatile) in the cryptocurrency space. If you’re considering investing, here’s what you need to know.
Most people are familiar with Bitcoin, but it isn’t the only cryptocurrency around. Meme-based currencies like Dogecoin have gained a massive following over the years, prompting several copycats, including Dogecoin-derivatives Shiba Inu, Dogelon Mars, Samoyedcoin, and Doge Dash, among others.
Though they are often created as jokes, these coins can go mainstream. Dogecoin, for example, had a huge spike in value in May 2021 before leveling off, and is currently ranked eleventh in market capitalization, according to CoinMarketCap. Still, their individual value is never very high—Dogecoin is currently worth about $0.15 per coin.
So, should meme coins be taken seriously? Here’s what you need to know before investing.
In a nutshell, meme coins are cryptocurrencies inspired by memes and internet jokes. Dogecoin, for example, was inspired by the Doge meme created from a viral photo of a Shiba Inu. These cryptocurrencies often aren’t meant to be taken seriously but can still gain momentum when members of the community buy into the newest one in order to be in on the joke.
Once it gets popular and spikes in value, retail investors sometimes jump on board and further boost the coin. Prominent online figures and celebrities also drive up the popularity of certain meme coins. Elon Musk is probably the person most famous for it, and there’s even a fork of Dogecoin called Floki Inu based on Musk’s actual pet dog.
Some meme coins are just created as a snub. In December 2021, Mongoose Coin was created after a member of Congress made the name up during a hearing on digital currency.
Meme coins have been around for a few years now, but some trace the origins of the current boom back to the meme stock war of late 2020, when the Reddit community WallStreetBets vastly inflated the value of GameStop’s stock. Following that, another group of Redditors joked about pumping up the value of Dogecoin in a similar way, and the trend caught on.
Another Reddit community called SatoshiStreetBets started a similar stock war against mainstream cryptocurrencies like Bitcoin and Ethereum in 2021. Internet celebrities like Musk also hopped aboard the meme coin train, and the ensuing popularity drove more people to create similar cryptocurrencies.
Some meme coins are more than just jokes. The makers of the Floki Inu meme coin, for example, partnered with the Million Gardens Movement, a charity co-founded by Musk’s brother Kimbal.
These days meme coins are so popular that many people only invest in meme coins. every day new meme coins are getting released and most of them are scam or slow rug pull only a few of them are genuine and gives profit, as cryptocurrency is not regulated yet it is easy for scammers to steal investor money by creating meme coins. you need to do your research before investing in any meme coin, and only invest a small amount in a single coin because no one knows which meme coin will do rug pull in the future.
Disclaimer: This article is just for an educational purpose and we do not encourage people to invest in any crypto project.