Meme coins have recently overtaken major cryptocurrencies like Bitcoin and Ethereum in terms of popularity. Shiba Inu and Dogecoin , the top two meme cryptocurrencies, are currently in the top ten in terms of market cap, according to Coinmarketcap.com. Let's take a look at what meme coins are, where they come from, and where they are now on the market.
Influencers have always played an important role in crypto culture, but never more so than in recent months. Elon Musk's endorsement of Dogecoin, the first meme cryptocurrency, sparked a wave of copycats.
Some people think that it is crazy to invest in memecoins, while others see it as a low-risk venture with 1000 percent profit potential. Regardless of who is right, there has been a boom in interest in cryptocurrencies and meme tokens in recent months.
What is a Memecoin?
A memecoin is a cryptocurrency that is based on the concept of a meme. They are also known as dismissive compared to popular cryptocurrencies because they were often established as a joke. Despite this, a significant price increase has been seen in certain tokens in recent years.
A memecoin has no intrinsic value and is rarely useful. As the name suggests, these coins are often based on internet memes, which are jokes and images shared on social media.
These coins are known to gain popularity quickly. They are frequently promoted by cryptocurrency influencers and ordinary investors looking for short-term profits.
The original memecoin, Dogecoin, was founded in 2013 as a joke based on a meme. It became known after Elon Musk started tweeting about it, and retail investors flocked to the cryptocurrency.
Developers have released a series of prank coins after Dogecoin as anyone can create a new cryptocurrency. Dogecoin has spawned a large number of new cryptocurrencies.
Also Read: What is Hokk Finance
How are a normal cryptocurrency and a memecoin different?
Meme coins are a kind of cryptocurrency, but there is a key distinction between cryptocurrencies like Dogecoin and Shiba Inu and coins like Bitcoin and Ethereum, and it has to do with utility.
Bitcoin and Ethereum, two of the most popular cryptocurrencies, were produced to answer real-world problems. The goal is to gain merchant acceptance and spawn a new type of decentralized currency that will revolutionize a variety of industries.
Memecoins have no real-world use, and most of them were developed for the sole purpose of making quick money. Some of these coins have become widely known as a result of celebrity endorsements, and retail investors have inflated their prices by advertising them widely online. This explains why, despite their poor fundamentals, many currencies have seen extraordinary growth with Hokk Finance Meme Token.
Many investors sell immediately when prices rise to make a quick profit. Meme coins are unlikely to exist in a few years or decades because they have no genuine utility at the moment. Meme coin prices are sure to drop once investors switch to another asset or cryptocurrency.
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