Nothing contained herein shall constitute a solicitation, recommendation, endorsement, or offer by Crypto.com to invest, buy, or sell any coins, tokens, or other crypto assets. Returns on the buying and selling of crypto assets may be subject to tax, including capital gains tax, in your jurisdiction. Any descriptions of Crypto.com products or features are merely for illustrative purposes and do not constitute an endorsement, invitation, or solicitation. Meme coins’ high supply and volatility make them more speculative than other cryptocurrencies.
- Whoever’s right, interest in meme coins or tokens has surged in recent months.
- Meme coins have carved out a peculiar niche in the cryptocurrency market.
- Dogecoin was an instant success upon launch and surged in popularity on platforms like Reddit.
- This idea has important implications for understanding market dynamics, where narrative and hype can significantly influence digital asset prices.
The news sent Bitcoin and many other cryptocurrencies into a tailspin, but the price of Dogecoin jumped up 300%. The following month, Dogecoin’s trading volume was higher than all other cryptocurrencies combined, according to crypto platform Gemini. All cryptocurrencies are still considered to be alternative investments due to their newness and volatility.
Make sure you’re comfortable with seeing your meme coin values fluctuate wildly — sometimes in the blink of an eye and not always for any obvious reason. Our partners cannot pay us to guarantee favorable reviews of their products or services. With such a high concentration, a large investor could manipulate the market with their position or send the price of the coin crashing down when they cash out their holdings. Shiba Inu (SHIB) launched two years ago as the “Dogecoin killer.” The crypto even imitates the Dogecoin branding in so far as using the same Shiba dog.
This idea has important implications for understanding market dynamics, where narrative and hype can significantly influence digital asset prices. One social media post from the right influencer can send a meme coin skyrocketing in a hurry — or pop a meme coin’s inflated valuation just as quickly. Meme coins spotlight the power of community and sentiment in the digital age. Their value is largely driven by social media, celebrity endorsements, and the broader meme culture that thrives on the internet. The first and most famous example, Dogecoin (DOGE 12.03%), was created as a joke in 2013 but has since gained significant popularity and market capitalization. It is based on the same blockchain code that runs the larger, more sincere Bitcoin cryptocurrency but with technical tweaks that make it less useful for real-world payments and storage of monetary value.
The creators of Dogecoin used a popular meme of a dog (purposely misspelled “Doge”) as the logo for their cryptocurrency. While making money on meme coins is technically possible, 7 bittrex alternatives for investors and traders it’s not a sure thing. These cryptos are subject to more volatile factors than mainstream cryptos like Bitcoin and Ethereum, and the value of a meme coin can plummet overnight.
An exception is Shiba Inu (SHIB), which has a total supply of 1 quadrillion tokens. Dogecoin’s success inspired many developers to create their cryptocurrencies tied to a popular meme. Since 2013, hundreds of different meme coins have been released to the public, but few of them achieved similar popularity. Shiba Inu is the only other meme coin with a market cap of over a billion dollars and is currently ranked as the 12th largest cryptocurrency by market cap, which is a little over $6 billion.
Many meme coins are often held by a small group of people who own large concentrations. According to the data from IntotheBlock, 48% of DOGE is controlled by seven crypto wallets. That number is even more stark for SHIB, where 69% of ownership is concentrated among 15 wallets.
Let’s check out Dogecoin, for example
Dogecoin, Shiba Inu, and other currencies that may offer more entertainment than usability fall into this category. When buying or trading meme coins, it’s critical to understand the risks to help you avoid unexpected volatility and losses. According to Zauman, meme coins are usually promoted by their creators on social media platforms to create initial hype and drive up the price. After that, the price may continue to go up if the coin manages to create a strong community.
One of the best examples of this is Shiba Inu, which plans to create the Shibaverse, a Metaverse for Shiba Inu community members. The ecosystem already includes ShibaSwap, a DEX where users can swap tokens. In the Crypto.com App, users can conveniently buy meme coinbase cryptocurrency traders continue to face frozen funds for weeks coins and 250-plus other coins using Apple Pay, Google Pay, a credit/debit card, or 20-plus fiat currencies transferred from their bank account. To do so, users can tap ‘Buy’ from the home screen and select the token to purchase plus the payment method.
Bitcoin Cash
Shiba Inu (SHIB), a crypto token inspired by Dogecoin, is the second largest meme coin by market cap. Shiba Inu was created by an anonymous developer named Ryoshi, and released in August 2020. Using the same breed of dog (the Shiba Inu) as its logo, Shiba Inu’s developers aimed to create a meme coin that would be an alternative to DOGE. Unlike DOGE, Shiba Inu was created on the Ethereum blockchain network.
Shiba Inu and Dogecoin are considered success stories among meme coins. For every Dogecoin, there are many other meme coins that have left retail investors heavily underwater. More than 200 such coins have been created since the launch of the original meme coin. When a celebrity endorsement disappears, these cryptos can come crashing down. Today, Dogecoin’s market cap is only worth a tenth of its all-time high from more than a year ago.
Like the memes they’re based on, meme coins are designed to go viral and be shared. This phenomenon underscores a shift in how value is perceived and created in the cryptocurrency space. While traditional assets are evaluated based on fundamentals or utility, meme coins thrive on collective belief and the communal desire to be part of a shared (but speculative) financial journey. Meme coins are cryptocurrencies that originate from internet memes or have a humorous or viral aspect.
Dogecoin: The original meme coin
Instead, transactions are validated through a process called staking. Unlike Bitcoin, which is capped at 21 million coins, meme coins often have a high or unlimited supply. At its peak, Musk’s endorsement propelled Dogecoin to a market cap of $88 billion in May 2021 and became a pop culture phenomenon.
But there’s a tiny chance that if you pick the next big coin before online fans send it “to the moon,” you could become the next crypto millionaire. So, when it comes to risky meme coins, it’s best to proceed with caution and do your research. Anyone with the necessary technical knowledge bitcoin wallet address blockchain how to trade in ethereum in india 2020 is easily able to create a cryptocurrency. However, turning a coin or token into a popular meme coin is complex and has only been successfully achieved a few dozen times. For example, ether is used to pay validators for verifying transactions on the Ethereum blockchain.
But you should be fine as long as you know what you’re getting into. Meme coins also serve as an entry point into the cryptocurrency world for many investors. They frequently come with very low dollar-based prices, often paired with viral stories of dramatic gains in the early going.
When assessing a crypto asset, it’s essential for you to do your research and due diligence to make the best possible judgement, as any purchases shall be your sole responsibility. But Musk isn’t the only business person who’s been open to meme coins. AMC, GameStop, Newegg, and Twitch have already begun accepting meme coins like Dogecoin and Shiba Inu. Meme tokens comprised around 1.38% of the crypto market cap as of September , and the sector is worth over $14 billion, according to the aggregator Cryptoslate. As the leading meme coin, Dogecoin is available on a wide variety of crypto exchanges including Coinbase, Binance and Kraken. Meme coins have carved out a peculiar niche in the cryptocurrency market.