If you look up the definition of “meme” in the dictionary, it spells out a humorous picture, video, or passage of text that internet users quickly spread online. Like memes, meme coins are cryptocurrencies motivated by memes and internet jokes. Platincoin aims to provide more information about meme coins and their possible importance.
What Is a Memecoin?
Meme coins, sometimes spelled meme coins, are digital currencies inspired by Internet memes or had other humorous features. The meme coin section of CoinMarketCap, a popular cryptocurrency website, shows more than 300 currencies. However, many are traded infrequently and are hence worthless. Only a few meme coins like Dogecoin, Shiba Inu, Dogelon Mars, and Baby Dogecoin have a daily trade volume of more than $1 million in the meme currency category.
The Correlation between Internet Influence and Memecoins
Most meme coins’ market value is impacted by influencer culture. For instance, Elon Musk, who has the power to sway social media quickly, can produce significant trends in the pricing of these coins. This hype sparks discussions about topics other than the actual product and feeds social media trends that lead to a crowd mentality, which can be good and bad for the cryptocurrency industry.
Platincoin explains further that meme coins are advertised by their authors on social media sites to generate initial buzz and boost the price. If the coin succeeds in building a robust community, the price may then continue to rise. Many meme coins in the market were developed to cash in on the mania as the bull market hysteria drove prices up.
How Do Meme Coins Work?
Meme coins have incredibly minimal admission requirements since the blockchain technology that underpins these cryptocurrencies are mostly a copy of other existing cryptocurrencies. Most cryptocurrency technologies are open-sourced, so developers can simply “fork” current cryptocurrencies by copying and pasting the blockchain, then launching them online with just a minor name or logo changes.
Although anyone with the required technological skills can establish a cryptocurrency, creating a coin or token into a well-known meme currency is incredibly challenging and has only been accomplished a small handful of times. According to CoinMarketCap, Dogecoin, Shiba Inu, Baby Doge Coin, and Dogelon Mars are market capitalization’s top four meme currencies.
Dogecoin: The Original Memecoin
Dogecoin is the first and most well-known meme currency (DOGE). It was founded in 2013 by Billy Markus and Jackson Palmer and was named after the Shiba Inu dog that was the subject of a well-known internet meme. The creators claim Dogecoin made it to make fun of Bitcoin (BTC).
The founders claim that they intentionally misspelled “dog” to create the moniker “doge,” and that they did so to make the cryptocurrency “as stupid as possible. But Dogecoin started to gain popularity thanks to a passionate user base, thus ushering in the current wave of meme coins, which would become the hallmark of other meme coins.
Verdict
Platincoin thinks that meme coins are the perfect asset for learning about cryptocurrencies and blockchain technology. Memecoins offer the chance to join a vibrant community of good-willing traders and investors. For instance, the Dogecoin community donated almost $30,000 to the Jamaican bobsleigh squad when they could not afford their trip to the 2014 Winter Olympics in Sochi, Russia.
