Memecoins
Are Memecoins good for the crypto industry?
The crypto market has headed into bullish territory again this spring, which means everyone is looking for investments in decentralized tokens. Bitcoin’s April halving event is poised to propel the OG cryptocurrency’s value into the stratosphere, according to some estimates reaching up to $400,000but on the other end of the spectrum, a series of memecoins are making cryptocurrency purchases more accessible.
In recent years, the adoption of cryptocurrencies has increased significantly, despite the devastating crypto winter of 2022. While the focus has traditionally been on major tokens, consumers play both. Online Bitcoin Games With industries integrating smart contracts based on Ethereum, all eyes are now on the resurgence of memecoins. Thanks to continued developments in the Solana blockchain and the emergence of memecoin generators like Pump.com, these novelty tokens are back with a vengeance.
Memecoins explained
Memecoins indeed constitute a unique segment within the broader cryptocurrency ecosystem. They may be recognized as digital assets, but their value derives more from the cultural phenomenon of Internet memes than from any technological utility or innovation. As their name suggests, this group of crypto tokens originated in the landscape of social media, online forums, and Discord servers and perfectly encapsulates the irreverence of these online communities.
The first coin to start the trend was the infamous Dogecoin (DOGE), launched in December 2013. What started as a joke – the token was based on the online Shiba Inu meme “Doge” – quickly became a project with strong traction and Soon, Dogecoin reached a significant market capitalization. Like all pioneers of the trend, it has also attracted several imitators, such as 2021’s Shiba Inu (SHIB), as well as spin-offs like Dogelon Mars (ELON) and Dogecoin Cash (DOGC).
While other crypto tokens have underlying utility or actively contribute to the continued development of decentralized technologies, memecoins have been widely used as speculative trading coins. Highly volatile, with prices determined more by online buzz than their intrinsic value, nevertheless, both seasoned traders and complete novices contributed to their substantial trading volumes.
Good for cryptography..
Opinions on the validity of memecoins are divided within crypto markets, with some experts firmly in the “for” camp, while others view them as worthless speculative tokens. MEX co-founder Arthur Hayes, for example, believes that these novelty coins actually contribute to the overall ecosystem in positive and substantial ways, especially in relation to the blockchain networks they are launched on.
In an interview with Real Vision, Hayes argued for the role memecoins play in increasing the value of chains that support this seemingly frivolous culture. Just look at the adoption of the Solana network and the growing value of its native token SOL to see the very real impact of November 2023. “memecoin frenzy”. Even Bitcoin saw an increase in network and development activity after the launch of novelty tokens BRC-20 and Ordinals.
It’s a sentiment shared by Andreas Brekken, founder of direct-to-wallet trading platform SideShift. He believes that meme-based cryptos actively help a broader demographic of consumers engage with blockchain technology and can even serve as a “real-world testing ground” for the technology.
…Bad for investors?
However, it’s not all positive adoration from the industry. Ethereum co-founder Vitalik Buterin has signaled his disinterest in memecoins. In a March 24 blog post, he said that while he values ”people’s desire to have fun,” he wants developers and investors to increase the utility of meme tokens, or even use them for charitable purposes.
Additionally, major investment firm Franklin Templeton warned of the frivolous nature of the meme coin. The segment is becoming increasingly attractive to Gen Z users, particularly due to its gamified nature, but critics compare memecoin investing to someone “setting their scarce cash on fire.”
This also implies that a flood of low or even worthless tokens arriving on the market could have a negative impact on the regulation of cryptocurrencies.
Memecoins to watch in 2024
Despite the mixed reception given to memecoins by the crypto industry, they are nonetheless one of the best performing asset classes in 2024 so far. If you are firmly on the side of memecoins and have a solid understanding of their inherent risk, the following are the ones to watch out for:
- Dogeverse – a relatively new multi-chain token that raised over $250,000 in minutes.
- Slothana – this play based on Solana 2024 has raised over $10 million so far.
- Dogecoin20 – with a staking APY of over 50%, is shaping up to be the next big memecoin.
- Sponge V2 – a renewed classic with stake APYs of over 160%.
- Smog – another new entrant making waves with its $160 million market cap
- Poodl Inu – this dog-themed token features a staking APY of over 90%
- Mollars – a gaming-focused ERC-20 coin
- Lucky Boo – has an airdrop capacity of 3.24 billion tokens
- Dogecoin – the OG meme coin is still a favorite among influential tech and crypto heads.