What are Meme Coins?
Meme coins are cryptocurrencies inspired by internet memes, famous personalities or pop cultural references.
Table of Contents
- What are Meme Coins?
- List of top meme coins according to Market Capitalization
- Pros of Meme Coins
- Cons of Meme Coins
- Where to buy meme coins
- FAQs
What are Meme Coins?
Meme coins are cryptocurrencies inspired by popular memes, popular characters/personalities, animals or artwork.
The concept of meme coins first originated in 2013 when Billy Markus and Jackson Palmer introduced Dogecoin. The coin was initially meant as a joke or a humorous response to the growing hype around cryptocurrencies like Bitcoin, Ether (ETH), Solana (SOL), Cardano (ADA), and Litecoin (LTC).
i originally designed dogecoin to blow its load in a few months in 2013 because i thought that was the maximum length of time anyone would care about a meme
— Shibetoshi Nakamoto (@BillyM2k) May 8, 2023
a bug that became a feature + merge mining with litecoin prevented it from dying as a coin
the meme, tho, seems eternal
Meme coins are mainly created for fun or to go viral. However, some meme coins have evolved from just being fun trading tokens. They now offer practical value and are used in decentralised finance (DeFi) or web3 projects, showing they can have real-world applications beyond their meme origins.
P.S. Meme coins are also known as meme tokens.
List of Top Meme Coins According to Their Market Capitalisation
Here are the top meme coins on the cryptocurrency market according to their market capitalisation.
To calculate market cap in crypto, you multiply the current price of a coin or token by the total number of those coins that are out there being used.
1. Dogecoin (DOGE)
2. Shiba Inu (SHIB)
3. Pepe (PEPE)
4. Bonk (BONK)
5. Dogwifhat (WIF)
6. Floki (FLOKI)
7. Memecoin (MEME)
8. Baby Dogecoin (BabyDoge)
9. MOG Coin (MOG)
10. Myro (MYRO)
Pros of Meme Coins
1. Profit Potential: Just like any other cryptocurrency, meme coins offer you the possibility of making money or profit if their value increases. While they can be highly volatile and speculative, some investors have seen significant returns from buying at the right time and selling when the meme coin value rose.
2. Familiar Introduction to Crypto: Meme coins can be an interesting way to discover how cryptocurrency and blockchain technology work. These coins are inspired by popular memes, which add a layer of familiarity while you try your hands at crypto trading.
3. Community Engagement: Meme coins often attract an active community of investors and traders. Participating in these communities can offer insights, trading tips, and a sense of belonging as you navigate the ups and downs of the market.
Josephine Inika
Cons of Meme Coins
1. High Risk and Volatility: Meme coins are often characterised by their extreme volatility, meaning their prices can fluctuate wildly in short periods. This volatility can lead to significant gains but also substantial losses, making them a high-risk investment option for both beginner and expert traders.
2. Accusations of Pump-and-Dump Scams: Some meme coins have been associated with pump-and-dump schemes due to their speculative nature and the hype surrounding them. These schemes involve artificially inflating the price of a cryptocurrency through misleading information and then quickly selling it off for profit, leaving unsuspecting traders at a loss.
3. Technological Complexity: While meme coins can be a fun introduction to cryptocurrency for some, they still have the technological complexity of cryptocurrency.
Understanding the underlying blockchain technology, wallet management, and transaction processes can take time and effort. We have several guides that explain how these technologies work.
You can start with this blog post that answers frequently asked questions about cryptocurrency. Or this blog post that explains how the blockchain works.
Where to buy meme coins?
You can buy meme coins on most cryptocurrency exchanges.
To start buying/selling or trading meme coins, you need to create a crypto trading account and get it verified. On Obiex, you can create a cryptocurrency trading account in about 90 seconds or less.
With an Obiex account, you can buy and sell over 20 cryptocurrencies, including the top 2 meme coins - DOGE and Shiba Inu.
Are Meme coins safe to buy?
Meme coins, like other cryptocurrencies, carry a layer of risk.
If you choose to buy a meme coin, we recommend that you do adequate research to understand what you are investing in, who is backing it, how it works, and perhaps a history of its price changes.
For more insight into how to research cryptocurrencies before buying, read this short guide.
Josephine Inika
FAQS
Q: Which meme coin is best?
A: The best meme coin varies depending on factors like popularity, market cap and your personal preference.
Q: What are meme coins?
A: Meme coins are cryptocurrencies inspired by internet memes, famous personalities or pop cultural references.
Q: What is a meme coin worth?
A: The value of a meme coin fluctuates based on market demand and supply, ranging from less than a cent to above $1.
Q: What's the difference between a meme coin and other cryptocurrencies?
A: Meme coins like DOGE, SHIBA INU and PEPE are created based on internet memes or cultural references, while other cryptocurrencies like BTC and ETH serve different purposes like transactions or providing/supporting smart contracts.
Q: Who creates meme coins?
A: Meme coins are created by individuals or development teams within the cryptocurrency community, sometimes as jokes or parodies.
Q: How do I buy a meme coin?
A: You can buy meme coins on cryptocurrency exchanges like Obiex by creating an account, depositing funds, and trading for the specific meme coin you want.
Disclaimer: This article was written by the writer to provide guidance and understanding of cryptocurrency trading. It is not an exhaustive article and should not be taken as financial advice. Obiex will not be held liable for your investment decisions.
