The websites for most meme coins advertise that they are meme coins, not meant for anything other than having fun. More popular meme coins claim to have uses (called utility) and point to the fact that they are accepted by some merchants. Many meme coins can be converted to fiat currency because they are listed on a centralized exchange, and therefore have a market value. The people most deeply steeped in meme coin trading tend to share the belief that investors don’t need to be coddled, wrapped in cotton wool.
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- SHIB also saw meteoric growth, rising to a market cap of $41 billion in October 2021.
- However, many meme coins don’t often have utility, such as being used to pay blockchain participants for doing work for the blockchain.
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- The low price point for meme coins might seem attractive to potential investors, but proceed with caution.
We do not include the universe of companies or financial offers that may be available to you. While the evidence appears stacked against meme coins turning into the next Dogecoin or Shiba Inu, the salivating upside and extreme “fear of missing out” were most evident during last year’s bull market hysteria. Unlike Bitcoin, which is capped at 21 million coins, meme coins often have a high or unlimited supply. Meme coins aren’t too different from this dictionary definition of a meme—they’re nothing more than cryptocurrencies that memes and internet jokes have inspired. Meme coins are a cryptocurrency genre generally advertised as having an exuberant online community supporting the currency’s development and growth.
Seth Zaraki, a longtime investor in meme coins, says the unapologetic emphasis on profit over utility is part of what he cherishes most about meme coin culture. It’s a refreshing honesty and level of self-effacement not found elsewhere in the sector, he says. Ace, who asked that his surname be withheld so he could speak about personal financial matters, has been buying and selling meme coins for years. His first was Dogecoin, the original meme crypto, launched in 2013 and popularized six years later by a now infamous Elon Musk tweet.
A volatile coin with unlimited supply
The token has also since been featured on HBO in segments of Last Week Tonight With John Oliver and Real Time With Bill Maher. In the Crypto.com App, users can conveniently buy over 250 coins using Apple Pay, Google Pay, a credit/debit card, or one of more than 20 accepted fiat currencies. Typically, meme cryptos have a huge circulating supply—often in the how to buy bitcoin in china quadrillions.
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Since then, Dogecoin has had instances where it leapt in value when Elon Musk tweeted about it, and hundreds of other meme coins have since entered the scene, including dozens based on the ‘Doge’ meme. Despite its ups and downs over the years, Dogecoin has consistently maintained a passionate community and, at one point, surpassed Bitcoin in daily transaction volume. Thailand’s regulator ordered exchanges to delist meme tokens in June 2021, alongside NFTs and fan tokens. There’s the sense of community and belonging that comes with being part of a shared joke or meme.
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Our partners cannot pay us to guarantee favorable reviews of their products or services. The purpose of this website is solely to display information regarding the products and services available on the Crypto.com App. You may obtain access to such products and services on the Crypto.com App. To steer clear of pump and dump schemes, be wary of sudden, unexplained price surges and perform research rather than relying on hype or tips from unknown sources.
Unlike many meme coins, Shiba Inu does place a limit on how many cryptocurrency tokens can be minted — but that limit is high. The extremely high number of SHIB coins in circulation keeps its price point low, and high transaction volume makes its value extremely volatile. You should not construe any such information or other material as legal, tax, investment, financial, cybersecurity, or other advice. Nothing contained herein shall constitute a solicitation, recommendation, endorsement, or offer by Crypto.com to invest, buy, or sell any coins, tokens, or other crypto assets. Returns on the buying and selling of crypto assets may be subject to tax, including capital gains tax, in your jurisdiction.
The creators of Dogecoin used a popular meme of a dog (purposely misspelled “Doge”) as the logo for their cryptocurrency. NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Our estimates are based on past market performance, and past performance is not a guarantee of future performance.
Instead, their value is largely driven by community sentiment and viral trends, which can sometimes lead to unexpected and substantial market momentum. In its early days, Dogecoin was mainly used for ‘tipping’, which is the practise top 15 internet of things iot tools and platforms in 2022 of rewarding people on the internet for doing a good deed. Now, people buy meme coins for a variety of reasons, driven primarily by the unique blend of humour, community engagement, and the speculative opportunity they offer. Inevitably, barring regulatory crackdowns (such as Thailand’s), the crop of meme tokens looks set to expand, as the tools to make them become ever more accessible. Meme.com, for instance, is a marketplace where users can compare meme cryptocurrencies and mint their own “memetic tokens”, whose worth will be based on the perceived value of trends or memes they represent.
When assessing is bitcoin a ponzi scheme a crypto asset, it’s essential for you to do your research and due diligence to make the best possible judgement, as any purchases shall be your sole responsibility. However, the speculative nature of these assets, coupled with their high volatility and lack of intrinsic value, makes them a potentially risky asset choice. Several mainstream businesses, however, have expressed an openness to meme coins. Knowing Elon Musk’s appreciation for meme coins, it’s not surprising that the Tesla store has begun accepting Dogecoin for certain items. Legitimate projects typically have a vibrant community that engages in meaningful discussions, asks critical questions, and receives transparent answers from the developers.