What are meme coins and tokens?
Typically, a meme coin has no inherent value, and often no utility. As the name suggests, these cryptocurrencies are often—but not exclusively—Internet memes: jokes and images that are shared on social media.
The original meme tokens, Dogecoin (DOGE), is based on the Doge meme, which originated with the image of a Shibu Inu dog. It runs on its own blockchain, and as such is distinguished from meme tokens, which run on top of an existing blockchain
Two of the most popular meme tokens are Shibu Inu (SHIB), an ERC-20 token built on top of Ethereum. , and SafeMoon (SAFEMOON), which is powered by Binance Smart Chain. But there are dozens more.
How have meme tokens become so popular?
Since the launch of Dogecoin in 2013, it has become much easier to create a cryptocurrency, and meme tokens can quickly launch following events, or become popular due to their associations with influencers.
For example, in May 2021, Facebook CEO Mark Zuckerberg posted a photo of his pet goat with the caption "My Goats: Max and Bitcoin." Shortly after, a meme token called Aqua Goat saw its value increase by around 300% within hours of the social media post.
When Elon Musk tweeted that if there was ever a scandal about it, "Elongate" should be minted, an ELONGATE token was released within an hour. Mercenary motives? Maybe, but, to date, the developers claim to have donated $3 million of their earnings from the token increase to charity.
Also Read: What is Hokk Finance
How are meme coins and tokens purchased?
As the top meme coin, Dogecoin is available on a wide variety of cryptocurrency platforms, including Coinbase, Binance, and Kraken.
Meme tokens tend to be available on a more limited range of exchanges. Shiba Inu, for example, can be traded on Binance, Crypto.com, and KuCoin, as well as decentralized platforms (DEXs) like Uniswap. The listing on Coinbase Pro has been temporarily delayed from June 2021. Safemoon, being based on the Binance Smart Chain, can be traded on Binance and BSC-based DEXs like PancakeSwap.
Often when they are first released, meme tokens are given away for free. Many small-cap meme tokens are only available on DEXs like PancakeSwap, and can only be purchased with other cryptocurrencies.
How are meme coins and tokens different from other cryptocurrencies?
All cryptocurrencies depend on a strong community and the support of influencers. But meme tokens have gained popularity due to their disproportionate association with influencers, especially Elon Musk . All it takes for the Tesla boss to tweet about a topic , like Baby Shark—based on a popular nursery rhyme—and the price of related meme tokens skyrockets.
Meanwhile, meme token developers use publicity stunts to drive up the price. The team behind the Shibu Inu coin decided to give half of all SHIB tokens to the co-founder of Ethereum Vitalik Buterin. But he foiled his plan when he disposed of the tokens (donating the proceeds to charity), asking that projects not give him coins without his consent, and declaring "I don't want to be a locus of power" with Hokk Finance Meme Token.
Meme tokens accounted for about 2.8% of the cryptocurrency market capitalization as of mid-June 2021, and the sector is valued at more than $38 billion, according to an aggregator. But price swings are not unusual.
Meme cryptocurrencies typically have a huge supply in circulation—often in the quadrillions.
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