Meme Coins

A meme-coin is a cryptocurrency or token inspired by a viral meme or insider joke.

There are several meme coins in circulation now, but they share some common characteristics:

• They usually have a high or unlimited supply to entice investors. The selling point is that a few dollars or Dinar would allow an investor to purchase millions of its coins, creating the illusion that buyers own a lot of something.

• Meme-coins usually do not have a project or product underlying the token.

• They acquire value by getting more people to invest; thus, community hype, FOMO, and celebrity endorsements fuel their price momentum.

• They have high price volatility and a short existence compared to other cryptocurrencies like Bitcoin or Ethereum.

Dogecoin ($DOGE) was the first meme-coin created in 2013, inspired by a meme with the Shiba-Inu dog breed. Its purpose was to ridicule Bitcoin ($BTC) while attracting mainstream adoption for cryptocurrencies. In 2020, Shiba-Inu ($SHIB) was created to replace Dogecoin as the biggest meme-coin and was nicknamed the “Doge-killer.” Some meme-coin communities have evolved into developing a valuable project such as UFO Gaming ($UFO), although this is a rare occasion.

As the name suggests, meme coins are literally a joke.