Memes served as creative inspiration for communities, bringing into existence the also popular #MemeCoin . 🪙
In this week's research through #SocialMining , I learned about Meme Coins.
I invite you to read this article, I am sure that like me, you will learn something about the subject.
Meme Coins are highly volatile cryptocurrencies with little or no value in themselves. They are not like the major cryptocurrencies $BTC > $ETH > $BNB .
They gain popularity from the communities and influencers behind them. Investors are attracted to Meme Coins because of the possibility of acquiring high yields.
However they form a part of the cryptocurrency market with fast and unpredictable movements. Their behavior is not like Bitcoin and Altcoins, where traders and market analysts can study the charts and predict the next move.
The supply of a Meme Coin is very wide or unlimited, apart from the fact that it does not contemplate token burning, its vast supply makes it a very cheap coin.
Fun fact: Meme Coins are born in the middle of the COVID-19 pandemic.
Meme Coins are not born out of necessity, but out of the creativity of someone inspired by memes to bring a little humor and fun to the community.
The demand for these coins is based on:
- Popularity and virality
- Community and culture
- Accessibility and entertainment
- Potential for quick profits.
Coins such as Dogecoin $DOGE and Shiba Inu became popular because of their association with memes and the support of high profile individuals.
Meme Coins have communities focused on promoting their use, to this we add the social media culture that drives their adoption.
People visualize Meme Coins as a fun currency, which makes them attractive to many, and they go after them because their volatility allows them to see quick profits.
Meme Coins were not created to influence Blockchain technology, neither for mass adoption of cryptocurrencies, their purpose is humorous, the community behind these coins can redirect the goal and support serious Blockchain projects without losing their fun character. Let's look at the positive and negative aspects of Meme Coins.
Positives
- Adoption: They have brought many people increasing the number of crypto wallets and activity on the Blockchain.
But these people have no interest in Blockchain technology, serious projects nor are they Shareholders.
- Innovation and experimentation: New ideas are likely to emerge.
- Community: The communities that support Meme Coins are very active, collaborations can be established to help the growth of serious Blockchain ecosystem communities.
Negatives
- Volatility and risk: Its high volatility can cause losses, discouraging the investor.
Never invest what you cannot afford to lose.
- Scams: They are susceptible to scams, due to their condition of volatility and quick profits, damaging the user's trust in Blockchain technology and cryptocurrencies.
- Distraction from serious technology projects: Excessive focus on Meme Coins, distracts attention from the long-term potential of serious technology projects.
I don't have a favorite Meme Coin, I don't go after the mechanism in which these coins operate, but Dogecoin remains a favorite for the following reasons.
- It has the backing of a loyal and very active community.
- High profile individuals such as Elon Musk also support the coin. #memecoindeelonmusk
- Low transaction fees make it easy to use.
- It is a fun currency that appeals to many.
SocialMining is a service offered by @EnsarEsen to help grow communities and spread awareness of projects.
This publication is informative, always do your own research (DYOR).
Sources
-concepto punto de
meme-internet
https://academy.binance.com/es/articles/what-are-meme-coins
