Following the latest news in crypto is what we as the #SocialMining community @DAO Labs do best, and as #DOGSONBINANCE rocket up, it's time to check out #MemeWatch2024 A #memecoin🚀🚀🚀 is a kind of cryptocurrency, but their origin is a joke or character that became a publicly known meme.

So , Memecoins are basically a joke that gathers the force of a community that builds force behind it, giving it a value based on their engagement. Dogecoin (

$DOGE ), which was created as a joke but gained massive popularity, and Shiba Inu (SHIB), a take on Dogecoin, are famous examples.

Traditonal cryptocurrencies have a purpose, and their creators aim to provide a solution to a specific problem or set of problems – these could be finance (Bitcoin), technology (Ethereum) or privacy (Monero). Memecoins do not often have such utility, and rely more on hype, social media and endorsements. Memecoins find their strongest proponents on platforms like Reddit, Twitter, and TikTok, where viral content spreads quickly. The communities behind these coins make them highly engaging, especially among younger, internet-savvy users. Many investors see memecoins as a quick way to make a profit because of their adrenaline-raising, volatile nature. The low price and high supply of these coins attract traders looking for high-risk, high-reward opportunities. In this respect, a memecoin is like a collectible item in the real world, including trading cards, rare art, or vintage toys. These items receive their value largely from community interest, the hype generated around the item, and their scarcity, rather than having intrinsic value. Another similar item group would be gems, such as amethysts or garnets. Just like memecoins, their worth is highly subjective and can jump up and down wildly based on trends, cultural relevance, and the emotions of collectors or investors.

The Good

Memecoins have brought a large number of new users into the cryptocurrency ecosystem, many of whom for the first time ever. Once a new user gets introduced to the cryptospace, they may become a regular user, increasing the reach of the ecosystem as a whole.

Increased liquidity is another benefit of memecoins and while somewhat risky, it is an undeniable support for the broader system. Also, the success of memecoins has shown that the community-driven aspect of blockchain can be incredibly powerful. This could bring about novel decentralized communities and governance models that rely on user engagement and viral growth, and possibly change how blockchain projects are developed and marketed.

The Bad

The aforementioned speculative nature of memecoins unfortunately adds to the overall volatility of the cryptocurrency market. For institutional investors and more risk-averse participants, this may end up slowing down the mass adoption of blockchain technology. This is because memecoins can give the impression that the cryptocurrency market is a "get-rich-quick" scheme rather than a serious technological advancement. As investors have gone bankrupt investing in a memecoin without due diligence, this perception can undermine the credibility of blockchain technology.

Another point is that the rise of memecoins and the associated speculative trading may cause governments or financial regulators to impose stricter regulations on the entire cryptocurrency market, potentially making it harder for new projects to emerge.

Meme Coins, Social Mining, and Decentralization

The community-oriented nature of memecoins is similar to the social mining concept developed by the DAO Labs, where users are rewarded for their contributions to a project’s ecosystem. In social mining, the value of a cryptocurrency is also closely tied to the strength and activity of its community. Memecoins too often have large, active decentralized communities and are given reach and power by the collective actions of their members. Just as social miners create value by contributing to a project, memecoin communities generate value through collective promotion, adoption, and trading of the coin.

I personally have $DOGS on the $TON Network and BONK on Binance, and am keeping an eye on any opportunities through airdrops or social mining. Memecoins are a lot of fun but require good research, skill and timing to be able to handle their volatility.

Disclaimer: All the information provided in this article is for informative and educational purposes, and not intended as financial advice. Any trades bear the risk of partial or total financial losses and must be approached with utmost caution. DYOR!