Recently, the cryptocurrency market has observed the emergence of a new, intriguing type of digital currency called a meme coin. These coins have garnered significant attention and movement in the crypto community, this has been primarily caused by their unique attributes, social media popularity, and celebrity endorsements.
In this blog post, we will discuss the phenomenon of meme coins, highlight six of the most popular meme coins, discuss the causes of their popularity, as well as the benefits and risks of investments in them.
Meme coins are a form of cryptocurrency that is derived from internet memes and typically features fun or humorous design.
Contrasting with traditional cryptocurrencies like Bitcoin or Ethereum, meme coins are typically created as a light-hearted or comedic take on the cryptocurrency market. They often have a vibrant online community and are celebrated for their marketing strategies that are viral.
The popularity of meme coins is attributed to their appeal to a younger demographic and their capacity to consume the internet. Their increase in popularity has been fuelled by social media platforms like Reddit, Twitter (X), and TikTok, which communities advocate for specific meme tokens, these tokens are used to promote and value the product.
Dogecoin was created in 2013 by software developers Billy Markus and Jackson Palmer as a form of currency that's inspired by the Doge internet meme. This particular currency is dedicated to the Shiba Inu dog and its mascot, the Doge.
The intended purpose was to provide a more humorous and light-hearted alternative to Bitcoin.
Dogecoin was quickly embraced by a dedicated community and reputation for being both "amusing" and "compassionate". To Billy and Jackson's shock, Dogecoin was a near immediate success, and became popular on sites like Reddit, where it is still used as a form of currency for tipping. On December 19th, 2013, the value of Dogecoin increased by nearly 300% in just over 72 hours, from $0.00026 to $0.00095.
* Key Features and Unique Aspects
1. No maximum supply. Unlike Bitcoin, which has a limited supply that is capped at 21M BTC, Dogecoin has an unlimited supply.
2. Fast and low-cost transactions. Dogecoin transactions are celebrated for their speed and low costs, which is ideal for microtransactions and regular use. The typical fee for transactions on the Dogecoin network is a fraction of a cent.
3. Simplicity. The simplicity of Dogecoin is one of its most notable attributes. It employs a Proof-of-work (PoW) algorithm that is similar to Bitcoin, but is less complex, which makes it easier to mine and utilize.
4. Community-driven.
One of the most notable attributes of Dogecoin is its devoted and passionate community. Dogecoin supporters, aka “Shibes,” have been recognized for their generosity and kindness, making the community one of the most accommodating and inclusive.
* Recent Performance and Popularity Trends
In 2021, Dogecoin saw a significant increase in popularity and value, fuelled in part by endorsements from prominent individuals like Elon Musk and the r/WallStreetBets community of Reddit.
The cost of Dogecoin has been increasing, although the project has failed to return to its previous high in May 2021, reaching an all-time high of around $0.7376. Nevertheless, Dogecoin has consistently been at the top of the meme cryptocurrency rankings. This has also led to the creation of numerous copycats, including multiple other dog-themed cryptocurrencies, such as Shiba Inu (SHIB), dogwifhat (WIF), Floki (FLOKI), among others.
Despite the price changes, Dogecoin continues to be popular and actively developed cryptocurrency, with a dedicated community and ongoing initiatives.
Shiba Inu is a meme digital currency that was created in 2020 by an anonymous creator or group with the name Ryoshi. SHIB was based on the popular Shiba Inu breed of dog that inspired the creation of Dogecoin. It was initiated as a decentralized experiment in "Dogecoin Killer", and has experienced significant success in the crypto community.
* Key Features and Unique Aspects
1. Decentralization. SHIB is a cryptocurrency that is decentralized and operates on the Ethereum blockchain, which means that it is not influenced by any central authority or government.
2. Large total supply. The total amount of SHIB is 589.52T SHIB tokens, and the creators intended to make the token supply appear to have an almost limitless amount.
3. Deflationary mechanism. SHIB has a deflation mechanism incorporated into its design. A portion of every fee transaction is dissipated, which means that the tokens are permanently removed from the circulation. This facilitates a decrease in the overall supply of the product over time and has a positive effect on its value.
* Recent Performance and Popularity Trends
From its conception to October 2021, the SHIB currency has grown from a low of $0.000000000056 to a high of $0.00008845, increasing its value by an incredible 150 million percent. This growth in price was caused by a combination of factors, including a large following in the community and viral media coverage.
However, like Dogecoin, Shiba Inu's price has exhibited significant variability and has fallen from its peak in 2021; currently (as per July 10, 2024), it costs $0.00001672.
Despite the price changes, Shiba Inu continues to be popular and is still actively pursued, with a dedicated community and significant ongoing initiatives. For instance, the token can be utilized to participate in various decentralized finance (DeFi) endeavors, including liquidity pools and DEXs (decentralized exchanges).
Additionally, the SHIB community has attempted to create a larger system of projects and services that revolve around the SHIB token. These include initiatives like the ShibaSwap decentralized exchange and a planned decentralized autonomous organization (DAO) that will be utilized to finance community projects.
Pepe (PEPE) is a cryptocurrency that was designed as a tribute to the Pepe the Frog internet meme, created by Matt Furie, which became popular in the early 2000s.
The Pepe token was created on April 15, 2023 with the intention of taking advantage of the popularity of the Pepe cartoon and creating a new cryptocurrency based on the concept.
Pepe Coin is considered to be one of the most trustworthy cryptocurrencies in the world. The coin is a token based on the Ethereum blockchain that is secured by Proof-of-Stake (PoS).
The project is intended to capitalize on the popularity of meme coins, such as Shiba Inu and Dogecoin, and to become one of the most popular cryptocurrencies based on memes. PEPE attracts the cryptocurrency community by promoting a policy of no taxation and being transparent about its lack of value, it maintains a pure and simple approach to things, resembling a meme coin.
* Key Features and Unique Aspects
1. No-tax policy. Pepe Coin transactions are free of extra fees, which is different from other cryptocurrencies that may have a tax on transactions. This policy facilitates the ease of use and accessibility of users who participate in transactions with Pepe Coin.
2. Deflationary process. This mechanism expends a small percentage of tokens with every transaction, which aims to create scarcity and may increase the value of the remaining tokens over time. The process of burning tokens is intended to reduce the supply of tokens while also increasing their value.
* Recent Performance and Popularity Trends
Pepe was released in April 2023 and became popular within the cryptocurrency and meme communities immediately.
Despite the price changes, Pepe has maintained a dedicated following and engaged in active trading, the popularity of which is primarily attributed to the cartoon character of Pepe the Frog and the speculative nature of the cryptocurrency market.
As of July 10, 2024, PEPE’s market cap is $3.94B and the current price is $0.000009366, with a 24-hour trading volume of $689.79M.
Memecoin (MEME) is the native currency of the Memeland ecosystem. Memeland is a Web3 project of 9GAG, a globally popular meme platform. It was released in 2023 and has since gained a loyal following among cryptocurrency enthusiasts.
* Key Features and Unique Aspects
MEME is built on the Ethereum blockchain and uses the ERC-20 token format as its standard. The main goal is to create a community-driven platform that allows users to create, exchange and interact with meme-based digital assets.
* Recent Performance and Popularity Trends
In 2024, MEME continues to develop, and its token value and user base continue to increase as more and more people recognize the project's unique and interesting DeFi approach.
Memecoin is currently priced at $0.01485 (as of July 10, 2024) and has a current market cap of $324.58M.
Floki (FLOKI) is the people’s cryptocurrency and the token used to pay for services in the Floki ecosystem. It's a cryptocurrency that's derived from fans and members of the Shiba Inu (SHIB) community, and is dedicated to (and named after) Elon Musk's Shiba Inu.
The creation of the Floki Inu coin can be traced back to June 2021. At first, the project was intended as a dog-themed virtual currency, similar to Dogecoin, and was called Floki Inu. However, as the endeavour evolved from a simple meme coin to a more significant endeavour, the team rebranded as “Floki”.
Floki has 4 flagship utility projects:
- Valhalla - an NFT gaming world.
- A portfolio of decentralized finance initiatives launched under the FlokiFi.
- A market for NFTs and other merchandise called FlokiPlaces.
- A platform for content and education called the University of Floki.
* Key Features and Unique Aspects
1. Community-driven. FLOKI has a dedicated community, which drives its growth and popularity through collective efforts and grassroots marketing.
2. Deflationary mechanic. The token employs a deflationary mechanism that involves a portion of every transaction being burned, which diminishes the supply of tokens over time and may increase the value of the token.
3. Utility and ecosystem. FLOKI aims to create a comprehensive ecosystem that includes an NFT marketplace, apps for gaming, and DeFi products that have a real impact on society, beyond simply being a popular coin.
4. Charitable initiatives. The project has pledged to dedicate part of its profits to charitable causes, which will help to increase its public reputation and community faith.
5. Strategic alliances. FLOKI has formed strategic alliances that will help it to be more visible and utilize cases more effectively, it has partnered with various platforms and influencers in order to expand its reach.
* Recent Performance and Popularity Trends:
FLOKI saw a significant increase in popularity and a corresponding increase in price in 2021, this was because of the popular cryptocurrency's association with meme-inspired finances like Dogecoin and Shiba Inu.
In June 2024, FLOKI recorded its highest value ever: around $0.0003462. This was caused by investors taking over the token. Currently, it is trading around $0.0001525 (as per July 10, 2024).
Despite the price changes, FLOKI has maintained a vibrant community and dedicated development initiatives, the project has explored different scenarios and partnerships in order to promote adoption.
Dogwifhat (WIF) is a dog-inspired memecoin based on the Solana blockchain.
Despite only being officially released in late November 2023, the concept of Dogwifhat was initiated in November 2019 by a user named Issa. In this concept, a Shiba Inu dog wearing a hat as their profile picture on Twitter was released.
This quickly became a viral concept, which spread across online communities and garnered the attention of organizations like E-sports, celebrities, etc, maintaining its popularity.
* Key Features and Unique Aspects
1. Fixed total supply. Dogwifhat has a maximum supply of 998,905,925 WIF tokens, and its creator said that there is no intention of creating additional tokens. A consistent supply like Bitcoin can theoretically help to increase the price if demand increases in conjunction with it.
2. No staking, burning, or DeFi. While these attributes have been incorporated into other dog coins that were released following DOGE, WIF maintains a simple design and lacks any additional features in the ecosystem. It's just a token.
3. Community and price predictions. The value of WIF is derived from its community and the appreciation of its price that is based on both sentiment of the community and the market.
* Recent Performance and Popularity Trends
The action of Dogwifhat has been notable, the meme currency reaching a high of $4.85 on March 31, 2024. Since its all-time low of $0.0677 was recorded on January 8th, 2024, WIF has progressed significantly.
As the halving of Bitcoin has occurred, the increased volume of activity in the Bitcoin market and overall positive sentiment could be transferred to the meme coin sector. This would further promote the growth of Dogwifhat.
The coin's successful community and increasing popularity on social media have both contributed to its recent triumph, as more investors seek to profit from the potential benefits of emerging social media-based coins.
The increase in popularity of meme coins can be attributed to multiple important factors.
Meme coins have flourished because of the power of online communities and social media platforms. These digital currency projects have been led by enthusiastic advocates who often form a collective that promotes the project, creating a sense of companionship and a shared purpose. The capacity to quickly spread information and collect supporters on social media platforms like Twitter, Reddit, and Discord has had a significant impact on the success of multiple meme coins.
The inherently light-hearted and humorous nature of the meme has also attracted a large portion of the crypto community, particularly younger investors. The capacity to participate in and influence the course of these projects has led to a strong sense of community ownership, which has increased their popularity.
The participation and support of different celebrities and prominent business owners have also had a significant impact on the increasing popularity of meme money. When celebrated individuals like Elon Musk, Snoop Dogg, or Mark Cuban participate in a particular meme's support or interest, it can garner significant media attention and attract additional investors.
These celebrity endorsements and associated media coverage have helped to make the meme coins more legitimate in the eyes of the public, making them seem like potential investments, despite their often-whimsical beginnings. This exposure has further exacerbated the FOMO (fear of missing out) effect, as more people attempt to participate in the beneficial side of these digital assets that are trending.
Meme coins have also gained popularity due to its accessibility and cost, which is particularly true when compared to more traditionally created cryptocurrencies like Bitcoin or Ethereum. The lower cost of meme coins causes them to be more accessible to retail investors, who may be interested in taking a relatively small investment in them.
This accessibility, combined with the community-driven nature and the potential for rapid price increase, has made meme coins an attractive option for investors who want to diversify their digital currency portfolios or take advantage of the hype surrounding these new digital assets.
The investment in meme coins is dualistic: there are both benefits and risks associated with it.
Meme coins could have a significant impact on investors, particularly those who get involved early on a project. The speculative nature of these digital assets, combined with their capacity to attract the attention of the mainstream media and the larger crypto community, has led to instances of rapid price increases that have led to significant benefits for early adopters.
The decentralized and community-driven nature of meme coins can also have a positive impact on their future potential, as the collective passion and influence can increase demand and price increases. This element of meme coins has led to its popularity among investors who seek out high-reward opportunities in the cryptocurrency market.
However, the same factors that contribute to the potential high returns of meme assets also have an inherently unstable and riskier composition. Meme coins are typically marked by rapid price changes, the value of which is primarily derived from social media trends, community sentiment, and the random acts of power.
This volatility can have a significant negative effect, the price of a meme coin can decline as quickly as it increases. Investors may have the risk of losing a significant portion of their capital if they fail to consider the time of day or the location of their investment correctly, or if the project is lost in the handover or if it no longer has a popular reputation.
Additionally, many meme coins lack the technological support and long-term value associated with more traditional cryptocurrencies. This can lead to them being subject to more stringent regulation, having security issues, and being susceptible to market manipulation, all of which increase the risk for investors.
Investors who are considering committing funds to meme coins should be cognizant of the fact that, in the majority of cases, these digital assets are highly speculative and have a significant degree of volatility, which can lead to significant financial losses if the investment is not in line with their risk tolerance and investment strategy.
As the number of people who use meme coins increases, investors may find themselves in need of a comprehensive financial management solution that can help them understand the complexities of these highly debatable digital assets. Enter Nonbank, a platform that attempts to provide users with a single view of their entire financial portfolio, including traditional assets like USD and EUR, as well as such investments like cryptocurrencies and meme coins.
By combining the holding of meme coins on the Nonbank platform, users would be able to gain a more comprehensive understanding of their total financial standing. This would involve observing the performance of their meme-based investment, creating custom alerts and notifications, and managing the risk associated with their portfolio in different classes of assets.
Nonbank's advanced analytics system could facilitate a more informed decision regarding the allocation of funds and the management of their cryptocurrency investment. This would be of great value in the highly volatile and speculative market, where information and data-based strategies can have a significant impact on investment results.
As the crypto market develops, the capacity to manage various digital assets in a single platform will become more important to users who want to capitalize on the opportunities and reduce the risk associated with the ever-evolving world of cryptocurrencies.
Meme coins have undoubtedly garnered the attention and imagination of the cryptocurrency community, they have become a common component of the digital currency landscape. These whimsical and frequently comedic digital currencies have succeeded in overcoming their initial status as a novelty, they have evolved into a significant part of the crypto community.
For investors who want to navigate the confusing landscape of the meme coin, comprehensive solutions like Nonbank can be invaluable. This platform allows them to combine their holdings of the meme coin with a broader portfolio of investments and make more informed decisions.
