Meme coins became famous in 2021 as a result of their popularity on social media and in response to statements made by celebrities such as Tesla CEO Elon Musk.
Dogecoin started the meme currency frenzy, rising by over 15,000 percent at its peak in May, and is still one of the most popular meme currencies today.
What exactly are meme coins, and are they still good investments? As a starting point for your investigation, we'll examine at the top meme cryptocurrency currencies by market capitalization.
What distinguishes a cryptocurrency from a meme coin?
Memecoins are cryptocurrencies based on Internet memes that have gone popular. In2013, Dogecoin was established as a parody of the rise of various cryptocurrencies looking to compete as bitcoin substitutes (known as altcoins). The picture of a Shiba Inu dog featured in a popular Internet meme was chosen as Dogecoin's logo.
Dogecoin'svalue stayed below INR 7 until early 2021 when cryptocurrencies became mainstream. Other dog-themed cryptocurrencies, such as Shiba Inu and floki inu, were inspired by its quick rise in the first few months of the year.
Unlike bitcoin, which has seen mining become centralized among a few miners with high stakes, these meme tokens have strong social media networks that strive to maintain them decentralized.
Dogecoin,shiba inu, dogelon mars, samoyed coin, and mona coin were the top trending meme currencies by market cap as of May 2022, according to CoinGabbar.
The dogecoin protocol is based on Luckycoin, a dormant cryptocurrency that was created on the Litecoin network. Because the supply of Dogecoin is uncapped, there are now over 132.67 billion coins in circulation. The currency's cheap price has made it popular for tiny transactions like social media tips on social platforms.
Dogecoin'smedia platform's popularity leaves it vulnerable to big price swings, particularly in reaction to different attempts by users on applications like TikTok and Reddit to collectively drive up the price, creating enormous spikes.
Dogecoingained popularity after Elon Musk referred to it as "the people's crypto" in a series of tweets. The stock rose ahead of Musk'sparticipation on Saturday Night Live, a popular comedy spoof parody being broadcasted in the United States, only to plummet after he dubbed it a"hustle."
These of dogecoin have progressed beyond a harmless joke. Some retailers are already accepting it as payment, and investors are including it in their cryptocurrency portfolios. Doge is now accepted by over 1,900 retailers and merchants.
The popularity of dogecoin inspired the launch of a slew of other dog-themed cryptocurrency coins. Shiba Inu was launched in August 2020 by anonymous developers and touted as the “dogecoin killer” that would overtake dogecoin in value. The coin runs on the Ethereum blockchain and is focused on developing its strong decentralized community known as the Shib Army.
The anonymous founder Ryoshi locked 50% of the coin’s one quadrillion supply on the Uniswap exchange and sent the other half to Ethereum co-founder VitalikButerin. Buterin burned 90% of the coins he was sent and donated the remaining10% to a Covid-19 relief fund in India, stating in a note attached to the blockchain transaction that he did not want “power of that kind”.
Thedogelon mars coin, which was launched in April 2021, is based on various cryptocurrency memes at the same time. It alludes to dogecoin and Elon Musk, with Mars alluding to the myth that fast-rising currencies would travel" to the moon."
DogelonMars, like other joke currencies, has an anonymous development staff. With one quadrillion tokens generated and 555.6 billion in circulation, it has a huge token supply. The rest of the coins were delivered to Vitalik Buterin's wallet for burning, much as the Shiba Inu currency.
Dogelonmars is an Ethereum-based token, and according to Whalestats, an unidentified buyer bought $1.28 million worth of coins at the end of November, causing the price to rise.
It is the mascot and community ambassador for the Solana blockchain and is another of the new meme currencies using dog symbols. Anatoly Yakovenko, Solana'sco-founder, is from Eastern Europe, as is the Samoyed dog breed. The currency is also named after Sam Bankman-Fried, the founder and CEO of the FTX exchange and a supporter of Solana. It hopes to attract new users to Solana as a blockchain alternative to Ethereum.
The currency became live in April 2021, with 12% of the total supply airdropped to community members. In July, a 54 percent burn plan was implemented, with 500million coins being burned on a monthly basis on a random day.
Monacoin is a peer-to-peer payment network based on the popular ASCII art character Mona in Japan. Mr. Watanabe, an unknown developer, produced it in December 2013 and posted it on the 2channel internet bulletin board. Mr. Watanbe is said to have created monacolin as a form of game money based on Japanese video games with their own currencies.
Monacoin garnered a large internet following in Japan after it was utilized to purchase a piece of property.
If you're thinking about investing in meme currencies, keep in mind that they're extremely volatile and can quickly pose ups and downs if speculative interest shifts to other coins.
They are prone to sudden price surges, which may create significant profits, but also to rapid selloffs, which can result in large losses. Your own risk tolerance will determine whether or not you invest in mere currencies and which ones you pick. You should conduct your own research and never put more money into a business than you can afford to lose. Also one must do his/her own research and if possible discuss with a financial adviser to incur maximize losses.