I want to tell you a little bit about meme coins. Today, we will analyze where they came from, why they have gained such popularity, how they stay in the top 10 of the crypto market, and the relevance of investing in them.
Today, literally every second cryptan has had experience with meme coins. It could be trading, mining, minting, participating in a giveaway, etc. This only confirms the existence of a powerful trend in this area of assets that constantly appear in hundreds and disappear in the same way.
It is a well-known fact that Dogecoin was the first in its genre. It was developed back in 2013 and allowed for a low commission of 0.01 Doge to transfer funds. In the early stages, it was used for quite a long time on Reddit to replace tips, which was quite convenient, since 1 block is generated in just 1 minute. An interesting story is the fact that the growth of the Doge meme itself led to the growth of the coin's trading volume in 2014, which exceeded the total trading volume of the crypto market together with Bitcoin. But the developer decided to take a break after that and the coin was not updated for a long time. Something really interesting started to happen only in 2021, when Elon Musk first tweeted about DOGE, which caused it to grow by 50% immediately, and in 2 months the rate increased 10 times. At that time, Dogecoin's market capitalization was close to $50 billion, making it the fifth most valuable cryptocurrency. On December 14, 2021, Musk tweeted that Tesla had started accepting Dogecoin as payment for some products on its website. Today, the coin is among the top 10 cryptocurrencies. In addition to Elon, Snoop Doge, hundreds of influencers, and even some companies joined the hype.
This is because the process of creating cryptocurrencies is quite simple today, and new coins can be created even every day. And to be successful, meme coins need to be associated with some current event or be attached to an Internet star. This is its main feature.
Other meme-coins soon appeared. They grew by tens of thousands of percent and fell in the same way. The creators of meme coins strive to get into the news or be highlighted in any other way, because this is the only way to increase the price of the token. Shiba Inu was created on the Ethereum blockchain in July 2020 as an experiment in decentralized spontaneous community building. The value of this meme token began to grow rapidly and successfully reached its peak in May 2021. The coin is named after the Shiba Inu dog breed, whose image is the Dogecoin logo. Just like Dogecoin, the Shiba Inu token is influenced by Musk's statements. It gained popularity due to the previous growth of DOGE. People saw what the meme-coin could achieve and wanted to be the first buyers to maximize their profits. This made the story incredibly popular on all social networks. That is why they are now next to each other in the cryptocurrency table. But these are the most famous and the ones with the largest capitalization. Let's look back at recent stories. One of the most notable trends in the evolution of meme coins is the emergence of DeFi (decentralized finance). One example of a DeFi meme coin is SafeMoon. SafeMoon is a cryptocurrency created in 2021 that quickly gained popularity due to its unique tokenization. SafeMoon charges a 10% commission on all transactions, half of which is burned and the other half is sent to the wallets of all users, which creates the illusion of growing your portfolio. Another trend in the evolution of meme coins is the emergence of community-driven coins. These coins are created by communities of investors who are passionate about a particular cause or idea. One example of community-driven meme coins is Hoge Finance. Others include: PEPE, Bruh, Airbdoge, and dozens of others, which were not only distributed for free but also brought in profits of $15-200. A strong difference from their older brothers is that these coins were very quickly listed on centralized exchanges, which allowed them to obtain sufficient liquidity for trading.
Let me tell you about PEPE. Before the marketing strategy and the hype around it began, the coin was purchased by +-20 addresses. Most likely, these were users who had done their research and decided to experiment, because purchases were up to $50 at that time. Then everything started to unwind, gaining momentum, and this is the new star of the meme sphere. But none of these addresses managed to make money. Their tokens were valued from $100k to $1.5 million. What was the problem? The developers simply blocked the coins through their contract for these people, without justifying their actions. And this happens quite often. Only those who are at the helm are really making money. And traders are just liquidity that can be used to unload. But this is still a good option for development. In the end, most people still had no problems selling and were able to make or lose money on the exchange rate.
Meet Squid Game. The Squid Game has created a lot of buzz as a series, and of course, a meme coin will be created based on it. More than 50,000 users bought the tokens, which only grew in value. At a certain point, the developers simply took liquidity out of the cup, sold all their coins, and reset the token's price to zero. The total losses were estimated at more than $4 million. This is not to mention the already classic scam stories, which have several patterns:
the token can only be bought, not sold. You will only see a chart with green candles that is constantly growing.
By signing a contract on a scam site to buy a coin, you agree to give all your funds
The coins are immediately sent to your wallet, and if you want to sell them, the story from pattern 2 repeats. So, keep your safety in mind and use a cool head. 98% of meme-coins will take your funds, is it worth the risk for a quick 15-20% profit?
So, keep your safety in mind and use a cool head. 98% of memecoins will take your funds, is it worth the risk for a quick 15-20% profit?
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