Meme coins have certainly caused quite a stir in the crypto space since the first meme token, DOGE, was established in 2013. Since then, there have been hundreds of meme coins created, with plenty of traders investing and hoping to make a profit. These meme-based coins have unique characteristics that make them stand out from typical cryptocurrencies, but what makes them so popular among investors?
Many investors are already familiar with the term – fear of missing out (FOMO), but meme coins seem to take this to a whole new level. After being publicly endorsed by celebrity figures, meme coins quickly become an attractive investment for traders. Additionally, with uncapped supplies and low-value token costs, meme coins are particularly appealing to newer traders.
If you’re planning to invest in certain meme coins, then you need to understand their key characteristics. Keep reading to discover all you need to know about meme coins!
What is a Meme Coin?
A meme coin is a type of cryptocurrency that has been inspired by a meme. This can be humor that has been captured in an image, video, or another form of media. Meme coins typically differ from standard crypto coins as they often lack any purpose and are simply designed to be shared. These coins also generally have uncapped supplies, making them extremely volatile, which is what makes them appealing to many traders. Other than this, meme coins are similar to standard cryptocurrencies and can be traded through crypto exchanges.
Popular meme coins were first designed to be a fun alternative to mainstream cryptocurrency, and some, such as Dogecoin, were created simply to mock the crypto-related hype. Now, as more meme coins are entered into circulation, creators have specific projects and purposes in mind, leading to meme tokens being created for charities, video games, and online marketplaces. Even certain businesses are now accepting meme coins, including Tesla, GameStop, AMC Entertainment, and Nordstrom, with more expected to follow in the coming years.
What Are the Main Characteristics of Meme Coins?
Here are some characteristics of meme coins that can distinguish them from other cryptocurrencies (note that these characteristics do not necessarily apply to all meme coins):
- Meme coins are inspired by viral media
- Meme coins have a high or unlimited supply
- Meme coins are heavily driven by communities
- Meme coins have a low value per token
- Meme coins are very volatile
- Meme coins have little to no real-world uses
- Meme coins do not have a ‘burn’ mechanism
Why Are Meme Coins Popular?
Similar to memes themselves, meme coins have been created to go viral. With celebrities like Elon Musk displaying support for certain meme coins, investors have flocked toward them, fueled by the fear of missing out (also known as FOMO).
Additionally, since they have such a low value per token, meme coins are often appealing to traders who want to diversify their portfolios. However, these coins are considered a high-risk investment due to their extreme volatility and uncertain future in the crypto space.
What Are the Top Meme Coins?
A wide array of meme coins compete in the crypto world, but few are actually well-known in the community. Here is a list of the most popular meme coins that you may want to consider investing in:
1. Dogecoin (DOGE)
Established in 2013 and holding the title of the ‘original’ meme coin, Dogecoin has undoubtedly stirred up the cryptocurrency community over the past few years. The creators of this coin claim that it was made as a joke to mock the hype that was surrounding cryptocurrencies.
However, this coin, which was based on the Japanese dog breed, Shiba Inu, generated a loyal community and made a significant impact on the crypto world. DOGE peaked around 2017 but still saw an uprise in investors after Elon Musk openly supported the coin through a series of tweets in 2021.
2. Shiba Inu (SHIB)
SHIB is a popular alternative meme coin to Dogecoin that was even considered the “Dogecoin killer” by supporters. Created in 2020 by an anonymous group with the pseudonym, Ryoshi, Shiba Inu is built on and powered by the Ethereum network. SHIB was designed to be the first token that is 100% run by its community (known as the Shib Army) and began with a supply of 1 quadrillion.
Similar to Dogecoin, Shiba Inu quickly rose in popularity, partly due to being openly supported by Elon Musk on Twitter. The coin peaked in late 2021 but has still kept its place as one of the most well-known and valuable meme coins.
3. Battle Infinity (IBAT)
This coin is a new competitor in the meme coin races that has already stirred up a storm in the crypto space. Battle Infinity is a gaming platform where players can compete in P2E (play-to-earn) games to receive rewards. On the platform’s decentralized exchange, Battle Swap, players can purchase the native token – IBAT, or convert their rewards into other currencies.
The Battle Infinity team claims that the token is designed to make the user experience efficient, seamless, and immersive. This token has a range of real-world uses, and since the platform integrates gaming with the VR metaverse experience, Battle Infinity has a lot of potentials. However, we’re sure that over the next few years, there will be an uprise of new contenders in the crypto gaming market.
How Do I Invest in a Meme Coin?
Investing in a meme coin is the same as investing in other cryptocurrencies. If you’re new to crypto trading, then we suggest that you sign up for a platform that will connect you with a licensed broker. However, you need to first check that the platform supports whichever mem coins you want to invest in. Bitcoin Up is an excellent example of a feature-rich crypto platform that supports meme tokens. After creating an account, you’ll be assigned a top-tier broker who will offer various tools and resources to help you build your crypto portfolio.
This is recommended for beginner traders in particular as it can help reduce poor financial decisions and other trading mistakes. If you’re still unsure, then you can make use of a demonstration account that allows you to trade with dummy funds on the market, so you don’t risk losing your own money. After you’ve built up some confidence, you can start trading your chosen meme coins with the guidance of your trusted broker!
To Conclude
Meme coins are a fascinating phenomenon, to say the least. From the first days of Dogecoin, meme coins have secured their own space in the crypto world and are gradually becoming even more mainstream. However, although there are hundreds of meme coins in circulation, only a select few end up skyrocketing, such as the most popular coins, DOGE, SHIB, and IBAT. But, if you’re a crypto trader who wants to diversify your portfolio at a low cost or you’re interested in trading highly volatile assets, then meme coins could be a fantastic option for you.
The crypto community has been flooded with meme coins, epically over the past few years, and although top contenders such as DOGE are no longer at their peak, there is still a steady growth incline. They can be considered high-risk investments, but that is part of the attraction. Even better, throughout recent years, more meme coins have been created for a specific purpose, and even large companies are beginning to accept them as currencies. So, to conclude, although the future of meme coins is unclear, it certainly is promising.