What Are Memecoins and What Are They Not?

There are times when #Memecoins__ crazes sweep through #Binance and other exchanges. Many investors, even if just a little, put money into these memecoins. However, nearly all of these investors are aware that these coins are bubbles that could burst at any moment. You’ve probably seen the latest campaign announced with the hashtag #DOGSONBINANCE . Especially in the @Ton Network ecosystem, we’ve been hearing about many new memecoins. Today, I wanted to share a few thoughts on the advantages and disadvantages of memecoins.

Memecoins are created based on internet jokes or popular figures. $DOGE and $SHIB are the most famous examples of these types of coins. Here are some characteristics of memecoins and how they differ from traditional cryptocurrencies:

Purpose: While memecoins are launched as jokes, more serious cryptocurrencies like #Bitcoin and Ethereum are developed for financial transactions and smart contracts.

Value and Volatility: The market value of memecoins primarily depends on community sentiment and social media trends, making them incredibly unstable. In contrast, more traditional cryptocurrencies are often more stable and versatile.

Community Support: One common feature of memecoins is that they belong to highly active communities, which can quickly drive up demand.

Fun and Accessibility: Since memecoins are intended for humour and entertainment, they may appeal to new investors.

Memecoins create a fun and flashy bubble in the cryptocurrency sector. However, it’s important to research investment opportunities before putting any money in. Of course, I’m not offering investment advice; my only suggestion would be to consider these types of tokens as very short-term investments rather than medium or long-term ones. Once you’ve made your profit, it’s best not to look back.

I work in #SocialMining at @EnsarEsen . Our work typically involves large companies. Therefore, I find it more prudent to invest in firms with many employees, producing real work, and their tokens. Naturally, I also have memecoins like $DOGS or $NOT in my portfolio, but I didn’t invest in them. I keep the ones I’ve received through airdrops and am ready to sell them when prices skyrocket during a new craze...