Memecoins
How Meme Coins Have the Last Word
While the cryptocurrency industry is no stranger to controversy, memes are a particularly polarizing type of token. Memes are essentially tokens whose name, image, and general concept are based on an internet meme or pop culture reference. Because of this foundation, many, even the most committed cryptocurrency enthusiasts, do not consider them to be legitimate tokens.
The first meme currency was Dogecoin, founded in 2013 and based on the popular Shiba Inu dog meme. In the decade since its creation, meme currencies have skyrocketed in popularity. As Michael explains, best meme coins can see millions of dollars of investment each month and are more publicly visible than ever.
Even though they continue to be maligned by critics, they are still on track for success for the following reasons:
If you talk to any critic of meme coins, one of the most common arguments you’ll hear is that meme coins don’t “do” anything and therefore have no value. A token like XRP can be used for cross-border transactions, and tokens like ETH can be used in metaverses. But what do meme coins do beyond being pop culture references? It turns out that it’s a big deal.
It’s not universal, but many meme coins are known to have utility that drives their demand. Tokens like BONK can be used to tip creators and pay for microtransactions in game universes. Dogecoin is used to fund a literal mission to the moon. MEME can be staked to earn interest.
The growth of the meme coin space has meant that developers of new tokens often need to give their projects utility to compete with others in the market. And those using meme coins certainly appreciate these features. As more and more meme coins are tied to gaming universes, for example, meme coins offer a way to access interesting features.
Some meme coins are also accepted on gambling sites. Crypto gambling is big business these days and it is not uncommon to see meme coins used on any site. anonymous casino or even on a casino dedicated solely to that token. As cryptocurrency gambling continues to grow, so will the meme coins attached to it.
As we’ve said before, not all meme currency projects are necessarily useful; some are just simple internet jokes related to community sentiments. But there are definitely others that are.
Another element that cannot be ignored when it comes to the success of meme coins is the fact that they enjoy a lot of hype in the market. Many meme coins have found themselves highly sought after, with Record pre-sales figures and listings on major exchanges. When tokens get this much attention, they are bound to garner public interest regardless of their utility.
This ultimately reflects on the market price of the token, making it even more sought after. Take Dogecoin, for example, which is ironically the first meme coin. We can debate its usefulness or lack thereof, but there is no denying that it is among the top 20 cryptocurrencies by market cap. The hype that meme coins get upon their introduction to the market usually leads to more people investing in them and thus maintaining their presence in the market.
This hype could be due to their profitability, the story they are based on, the team behind them, industry drama, etc. In fact, token creators like Dogwifhat have admitted that they have no practical use and are only based on industry hype.
Proving the power of hype, Dogwifhat became a major meme currency within a short time of its launch.
If you’ve been around the internet long enough, you’ll be able to attest to the power of people coming together to share jokes. Some memes have been turned into cryptocurrencies, sold as NFTs, and remain ingrained in our collective consciousness. While they may seem like jokes, funny images, or videos, they’re pieces of content that connect millions of people.
This connection can and has already generated considerable investment from consumers. When a new internet joke goes viral, there is a new opportunity to create a meme coin that people immediately recognize and relate to. A random token is less likely to catch your attention than a token called TRUMPSTOUPE or KENNYFROMSOUTHPARK. Fans of personalities, shows, etc. are also likely to feel more connected and compelled to buy meme coins.
While they are easy to dismiss, memes are inherently instantly more interesting to watch and use than regular cryptos, which will keep them at least somewhat relevant in the industry for times to come.
A common theme among many meme coins is the emphasis on community ownership and participation. Several tokens are known to function as DAOs, allowing the community to decide on their various changes. BONK, for example, is closely tied to the Solana community and has been thrown as a gift to this during a difficult time.
Given that many of them rely on community participation to keep their ecosystems alive instead of utility, community is even more of a priority than non-meme coins. Take the use of social media, for example, which has always been a big part of the success of cryptocurrencies, but is even more so when it comes to meme coins. Your average meme coin team actively engages with the community via social media and ensures that connection is never lost. As long as meme coins can continue to create and nurture these community connections, their continued success is more likely.
Conclusion
Memes are a really interesting phenomenon; they are digital assets based on memes and jokes that often have no practical use. Despite this, they have continued to succeed and are heading towards a future where they will have even more influence in the crypto space. But why?
As we’ve highlighted in this article, their current and continued success is due to the fact that they are very community-driven, harness the infinite power of the internet, are profitable despite their lack of use cases, and often have use cases after all.