What is Meme Coin? Everything you need to know about Meme Coin
- 1. What is Meme Coin?
- 2. Why did Meme Coin become so popular?
- 3. Distinguishing between Meme Coin and Cryptocurrencies
- 4. Potential of Meme Coin
- 4.1 Investment prospect
- 4.2 Potential for Crypto
- 5. Top 5 Meme Coin by capitalization
- 5.1 Dogecoin (DOGE)
- 5.2 Shibu Inu Coin (SHIB)
- 5.3 Magic Internet Money (MIM)
- 5.4 Spell Token (SPELL)
- 5.5 Dogelon Mars (ELON)
- 6. The risk of Meme Coin
- 7. Should you invest in Meme Coin?
What is Meme Coin? What does this market have that makes it quickly trendy on the Metaverse? Is it worth investing in this token? What are the risks? Everything about Meme Coin can be found in this article. Let's jump right in.
1. What is Meme Coin?
If other projects were born to contribute to DeFi, Meme Coin is not like that. In each phase, new Tokens like SushiSwap and Kimchi appear. Finance at the end of 2020 when the FoodCoin was booming. Or recently, in 2021, is the rise of Doge with ShibaSwap, CorgiCoin.
However, the evaluation of the project does not depend on whether there is a Scam or not. Users must observe the whole process from construction to development of the project.
For example, SushiSwap was once considered a Meme Coin, but there was a period when it developed as a real platform. Meme Coin projects have a higher chance of Scamming than usual.
2. Why did Meme Coin become so popular?
Meme Coins are often associated with world-famous KOLs and special events. At the same time, having the ability to catch up with emerging trends, it is pretty easy to reach and disseminate to the community.
Famous KOLs significantly influence this cryptocurrency. For example, when Elon Musk used his name to introduce Dogecoin - his favourite platform, this brought a new look and broad access to the Meme Coin.
Since Elon started promoting Dogecoin (DOGE), the platform has made a huge jump, with Shibu Inu and Safemoon far ahead of the competition.
In May 2021, Mark Zuckerberg - CEO of Facebook, posted a status with content and photos related to his pet goats. A few hours later, the price of a Meme Coin project, Aqua Goat, has increased by about 300%
Some people think that it is not wise to invest in Meme Coins. Others say this is a wise investment decision with the potential to earn 1000% of profits when starting with only a tiny amount of capital. Although there are still many opinions, the interest in Meme Coin is constantly increasing.
Token memes are appearing more and more on exchanges. Dogecoin has been present on many large and small cryptocurrency exchanges such as Coinbase, Binance, Huobi, Kraken, Bittrex, and Poloniex.
In addition to DOGE, Shiba Inu is traded at Binance, DeFi, FTX, KuCoin, OkEx, Gate.io and decentralized exchanges (DEX) like Uniswap. Similarly, Safemoon follows in the footsteps of previous projects and works on the Binance Smart Chain network or trades at Binance and on DEXs like PancakeSwap.
3. Distinguishing between Meme Coin and Cryptocurrencies
A strong community and celebrity support is the most important advantage for developing a crypto project. However, Meme Coin is not like that, as this market has become unknowingly popular, mainly thanks to unintentional promotion from influencers.
According to research by market analysts in mid-June 2021, Meme Coins account for about 2.8% of DeFi capitalization, and the sector is worth more than $38 billion.
Read more: What is NFT Marketplace? How to create NFT Marketplace?
4. Potential of Meme Coin
The potential Meme Coin of 2022 is quite special compared to other projects. Therefore, there will be many opportunities to increase competitiveness with other markets. So what are the potentials of Meme Coin?
4.1 Investment prospect
This is the most popular project today, especially for investors with little capital. The reason is due to the relatively large growth in a short time. However, the benefits always come with risks. Users can earn 2-3 times the profit in a day, but at the same time, they can lose half or everything. So, the profit from this platform is not easy to get.
4.2 Potential for Crypto
The advantage of Meme Coin is that generating a Token only takes a few minutes. While other markets take a long time to turn a profit. Many people own Token because of Dogecoin, not due to BTC or Elon Musk openly supporting Dogecoin payments.
This project is quite successful when it brings a new sense of adventure. Besides, the interface and icons are unique to attract more investors and circulate new cash flows into the market. That helps Token become stronger.
5. Top 5 Meme Coin by capitalization
BHO Network would like to introduce 5 Meme Coin by investment capitalization that is reaching the top of the charts today.
5.1 Dogecoin (DOGE)
In 2013, Dogecoin was born by developers Jackson Palmer and Billy Markus. This started out as a whim but has since turned into a serious project since Elon Musk started Shilling it on personal Twitter.
DOGE - inspired by dogs - caused the market cap to skyrocket to 9 billion USD in January 2021, reaching the Top 5 on the market capitalization chart. Currently, that number has increased rapidly to over 34.1 billion USD, making Dogecoin the most significant Meme Coin to date and ranked 9th on CoinGecko.
Surpassed competitors and became the Top 1 searched on DeFi in the United States this year. DOGE even left the king of crypto - Bitcoin, in the dust when it comes to search volume. DOGE is also one of the crypto projects participating in the promotion of the famous fast food chain Burger King.
This important event shows that Dogecoin's role is increasingly enhanced and more widely applied in payment services globally.
5.2 Shibu Inu Coin (SHIB)
Launched in April 2021, this project rapidly increased in value to over 2,000,000% before reaching ATH for the first time in early May. Contributing to that rapid growth are benefiting from the Dogecoin boom or when Elon Musk appeared on SNL - a popular American TV show.
When using SHIB, users are entitled to hold billions or even trillions of Tokens. Besides, to reach the ideal price of $1, this cryptocurrency would need to increase by about 12 million%. According to some recent records, SHIB has set a new ATH at $0.000543 and a record high volume of transactions on exchanges, especially Coinbase.
To reduce the circulating supply in the market, more than 900 million SHIB were burned. This helped Shiba Inu quickly reach the top 11 on the market capitalization chart with a total value of over 25.9 billion USD.
5.3 Magic Internet Money (MIM)
This Meme Coin project launched in March 2014 and ranks 77th on the data sheet by CoinGecko. Currently, MIM is the Meme Coin on DeFi with a total market capitalization of over $2.33 billion. Despite the volatility, the value of this Token has increased by 0.1% in the past seven days and decreased by 0.3% 1 day ago.
If you want to own Magic Internet Money, you can use the MIM mining process. This facilitates the DeFi community's access to MIM. Up to this point, Magic Internet Money owns a total supply of 2,344,752,207, equal to the same circulation.
5.4 Spell Token (SPELL)
SPELL is a cryptocurrency developed on the Ethereum platform (ERC 20), so it carries platform features such as using smart contracts. The inspiration for this project originates from the spell Abracadabra in the Harry Potter Series.
SPELL owns a total value of over $2.19 billion and ranks 81st on DeFi's market capitalization rankings. Some features such as Staking, Farming and Swap also appear on Spell Token and are integrated on the Abracadabra Money platform. It can be understood that this is a protocol used to borrow Stablecoin with interest-bearing assets.
SPELL is used as the Token used for transactions in the Abracadabra Money platform. Users holding SPELL have the right to decide on platform changes by voting.
5.5 Dogelon Mars (ELON)
Dogelon Mars works on the Ethereum platform. This Meme Coin project ranks 5th on the DeFi market and 183rd on CoinGecko's market capitalization rankings. ELON currently owns a total market capitalization of more than 516 million USD.
It achieved remarkable growth when Elon Musk surged to 4,000% and quickly set a new ATH at $0.00000000253 in October only. However, many strong fluctuations have recently caused the price of Dogelon Mars to drop.
Read more: What is NFT game? Top 20 Earning NFT Games in 2022
6. The risk of Meme Coin
Everyone will have a different view of Dogecoin; not everyone can see the positive and funny side. In June 2021, the Thai regulator ordered the removal of Meme Coin and NFT and Tokens from all exchanges.
Although there are quite a few advantages, users still have to pay attention to the risks of Meme Coin. While people bought in and sold off their money, a lot escaped with their profits and sent the market down. One lesson is that even experienced investors like Mark Cuban have been victims.
Users should only buy Tokens that have been tested, audited or have some trusted third-party monitoring. That is one of the ways to reduce the risk when investing in this market.
7. Should you invest in Meme Coin?
The truth is that developers depend on celebrities and influencers in cryptocurrency to launch more new tokens. This plan is temporary and not sustainable if you want to survive and thrive on DeFi.
Currently, creating the project's value is essential. At the same time, it is necessary to increase activities on private Blockchain platforms. Perhaps soon, this cryptocurrency will have to overcome many challenges. Before that, the market also faced some legal issues.
Because of the above barriers, the price of this cryptocurrency is volatile and difficult to sustain in the DeFi space. Therefore, deciding whether to invest in Meme Coin or not should be carefully considered to avoid the risk of encountering risks and losses.
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Hopefully, the article "What is Meme Coin?" has given you a more detailed view of this. Please contact BHO Network if you need more information.
Published on July 26, 2022
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