Memecoins
Are you still making fun of Memecoins like your mother? The joke might be on you
The representation of Dogecoin and a laptop keyboard are visible in this illustrative photo taken… [+] Krakow, Poland, June 10, 2022. (Photo by Jakub Porzycki/NurPhoto via Getty Images)
NurPhoto via Getty Images
As their name suggests, meme coins are a category of cryptocurrency inspired by memes or having a comical trait. After all, many of them, like dogecoin, started life as an internet joke. But here’s the funny thing: This piece has long outlived the initial “doge” craze (a sort of 2010s lolcat, with pictures of cute doggies with silly captions).
Although Bitcoin’s dizzying rise to new highs has dominated headlines in 2024, memecoins have delivered the most notable performance, with ROI for major tokens ranging from above 1,300 percent This year.
Of course, some of this is pure speculation, driven by celebrities (Elon Musk is known to be a strong supporter and promoter of Doge). But remember, they also said this about Bitcoin. The truth is that the value of memecoins depends on how useful they are in the real world, not how cute they are. That said, not all memecoins are created equal, and some of them definitely deserve to be treated as a joke.
Whatever you think of the “memecoin frenzy,” you can’t afford to ignore it. Let’s go ahead and look at some of the pieces most likely to prove the mockers wrong.
Beyond cute
Hello everyone Shiba Inu, the cutest of all doges! And when it comes to memecoins, it’s not just a pretty face – or a joke. Shiba Inu is a great example of how memecoins are developing real utility and even setting the technological tone for other digital currencies.
The representation of the Dogecoin cryptocurrency is seen with the Shiba Inu cryptocurrency logo displayed on a… [+] screen in the background in this photo illustration taken in Krakow, Poland, on June 29, 2021. (Photo illustration by Jakub Porzycki/NurPhoto via Getty Images)
NurPhoto via Getty Images
Shiba Inu is one of the largest memecoins by market capitalization, and recently announced a partnership with Zama.ai develop a fully homomorphic encryption platform. This means that Shiba Inu will be able to create identity, security and risk management solutions integrated with payment and other financial technologies. This not only improves privacy and security in the memecoin or crypto sector, but also sets standards for the traditional financial sector as it converges with the crypto economy.
Gettin’ Jiggy with Iggy
Australian model and rapper Iggy Azalea is just one of the celebrities cashing in on the memecoin frenzy, but she’s one of the most successful. Last week, no less a publication than Forbes reported Grammy-nominated play Mother Iggy ($MOTHER) soared 1,200% in just one week and is now worth $200 million.
Mother Token
Sandy Carter with DALL-E
Additionally, MOTHER token holders could soon use the cryptocurrency to purchase phones and monthly cellular plans from the singer’s telecommunications company.
But be careful: celebrity endorsement does not guarantee the success of a memecoin. For example, Caitlyn Jenner’s coin JENNER launched with great fanfare, with a market capitalization that briefly reached $43 million; however, its value quickly dropped and is now less than $6 million. So before investing in a memecoin, look beyond the celebrity name and ask yourself: what does this coin bring to the market, other than celebrity endorsement?
Investors flock to Floki
One thing a memecoin needs most of all – and this goes for all digital currencies – is a large and highly engaged community of users. After all, what’s the point of having a coin if you can’t transact with anyone?
Floki is a great example of a memecoin that is more than a token: it’s a movement. Presenting himself as “The people’s cryptocurrency», Floki is a project-based community based on utilities and NFTs. Among its unique features are its integration with play-to-earn Valhalla Metaverse, an NFT marketplace, as well as Floki University – a crypto education platform founded in response to renewed interest from new investors.
The Floki community
Flocking
This focus on utility is reflected in an ever-growing dedicated fan base, which has helped drive its total market capitalization of over $2.5 billion.
Strong chains make strong pieces
Although many memecoins are based on their own blockchains, some of the most robust coins are those built on existing, proven chains. A good example is Bonk, which uses the Solana blockchain. The fact that it is based on an established blockchain makes Bonk particularly suitable for a range of decentralized finance (DeFi) applications, as many existing decentralized crypto exchanges (DEXs) also use Solana.
Solana SOL cryptocurrency physical coin, abstract background.
getty
An added benefit of using an established chain is that memecoins like $BONK can leverage an existing community, with a ready-made marketplace for new utilities and integrations. For example, the Solana community has already built over 250 on-chain integrations for BONK.
Lessons before you get started
Just like Bitcoin before them, memecoins require extensive research before getting started. But here’s what you should look for if you want to get in on the ground floor:
- What does this piece bring to the market?
As we’ve seen, a coin’s long-term value is dictated by its usefulness. Look beyond the adorable doges and A-list endorsements and ask yourself: what is this room for? What problems does this solve? Are its functions truly new and useful, or are they just copying what other parts already do (and better!).
- Does the piece have a community?
It’s important to look beyond the buzz and see how many people are actively using or interested in memecoin. To take just one example, check their social media and forums to see how many people follow it or post about it, and compare that with other competing memecoins.
- A clear roadmap
You want to support a memecoin that goes everywhere, not a flash in the pan. You’ll want to determine if the coin has an experienced development team with a clear vision of how it wants to change the world, as well as evidence of recent and future integrations that will make it happen.
Whatever you do, don’t treat memecoins as a passing fad. Remember, it wasn’t that long ago that the value of Bitcoin was measured in just cents. Ignore the memecoin revolution completely, and the joke might be your fault.