We cannot imagine our lives without funny and laughable content that goes viral. Such pieces of content are widely known all over the globe as memes. Some memes might be temporal, while others become real mainstreams for an extended period of time. Actually, memes have a great influence in the modern world, so many brands even use them to promote their products and services.
No wonder, such an entertaining trend got quickly adapted in the world of cryptos as well. We can see this expressed in such popular digital coins as Dogecoin and Shiba Inu. In this article, we want to uncover the truth about the idea of meme coins and their real value in the digital market.
Key things to know about these projects
- Meme coins are unique projects inspired by viral memes that were adapted by the market to have the fun of mainstream projects.
- Dogecoin and Shiba Inu are the largest and the most popular meme coins – both find their roots in popular memes about Shiba Inu dogs.
- Meme coins aren’t usually considered real assets because of an unlimited supply of tokens, a low number of utility cases, and weaker ecosystems.
- Currently, popular meme coins didn’t introduce new features as they utilize the capabilities of two biggest blockchain technologies – Bitcoin and Ethereum.
- Meme coins can gradually increase in popularity thanks to loyal communities, the viral nature of memes represented, the support of celebrities, and other non-technical features.
The beginning
A lot of currently popular cryptos emerged in recent two years. Well, the oldest meme coin has been around for much longer, which proves its sustainability and popularity that hasn’t faded out over the course of these years.
Dogecoin is the first meme coin ever developed. It was founded in 2013. The initial aim of Billy Markus and Jacksons Palmer was to have fun at Bitcoin but it turned out that people were willing to buy a digital coin with a funny logo of a dog.
Dogecoin gained a huge hype thanks to the loyalty of its community, different initiatives implemented by DOGE fans, the willingness of crypto enthusiasts to explore more about the idea, and the support from Elon Musk. All this increased the demand for cryptocurrency and eventually made a good investment product out of a simple joke in the digital world.
As of the date of writing, DOGE is the ninth-biggest cryptocurrency by market capitalization. Shiba Inu, which takes the 13th position by market cap, is the only real competitor for Dogecoin in this niche. Although DOGE and SHIB are the most popular meme cryptocurrencies, you might also consider investing in other projects from this category, including Baby Doge (BABYDOGE), Dogelon Mars (ELON), and Dogelon Mars.
Why buy meme coins?
The aim of this article is to answer the question in its title. Now that you know what cryptocurrencies are, you can explore several reasons why meme coins are actually worth buying in 2023:
- Meme coins are extremely cheap compared to such giants of the market as BTC and ETH. This means that your initial investment doesn’t need to be huge to benefit from it, in case a meme coin performs a huge surge, which is quite common for them.
- Meme coins will grow together with the cryptocurrency market, which will facilitate the demand for them. For example, DOGE is today accepted by many popular brands as a payment method, meaning the project has established itself as a reliable one.
- Similar to other cryptocurrencies, meme coins aren’t regulated by central authorities, which makes them extremely easy to buy. You can access and enter any digital exchange or crypto trading platform and add a meme coin to your investment portfolio with minimum effort.
- You don’t need to have any specific knowledge of the crypto market and acquire special technical skills. Hype and demand are the biggest drivers of the meme coin price movements. These are the factors that are very easy to follow in modern conditions even if you don’t have any background experience in investing.
Why not buy meme coins?
The advantages of investing in certain cryptocurrencies always come alongside obvious disadvantages. In the case of meme coins, the reasons why they aren’t worthy investments are as follows:
- Meme coins might be considered the most volatile products in the market of digital investments. It’s totally impossible to predict their price fluctuations, neither for short-term nor long-term periods. You can trust only your luck and the ability to predict social media trends.
- Meme coins lack liquidity since huge amounts of them might be controlled by small groups of individuals. This enables such investors to speculate on the demand for coins and significantly impact their prices to their own advantage.
- The meme nature is usually the only distinctive feature of meme coins. They don’t introduce any technological upgrades but rather duplicate codes of bigger and more stably-performing coins. This makes them less attractive to developers and blockchain enthusiasts, which has a negative impact on price movements.
Conclusion
So, what is our final answer? Are meme coins worth buying? We conclude that they are only if you want to join the trend and become a part of a big community gathered around viral memes. If you want to buy serious investments that can be analyzed by any sort of technical instrument, it’s better to consider some more sustainable cryptocurrencies with clear and ambitious white papers.