The name speaks for itself. Memcoin is a digital coin based on an Internet joke.
One of the most popular memcoins of our time is Dogecoin, created by Elon Musk based on his favorite meme. The coin features a dog of the Shiba Inu breed, which you have probably seen on the Internet. The cryptocurrency was originally conceived as a parody of bitcoin, and its high growth was soon noted. Having “shot”, the digital coin brought great success to the creators, and also inspired other users to create new memcoins.
It is almost impossible to predict the rise or fall of memcoins, so the cryptocurrency belongs to the category of risky assets.
Details about memcoins
Memcoins are financial assets, as there are no fundamental factors behind them. The value of cryptocurrencies is determined by market participants.
The digital coin has found its application. In 2021, AMC Entertainment, the largest movie theater chain in the United States, began accepting payments in Dogecoin currency. There is an opportunity to pay with memcoins for gift cards.
The volatility of memcoins is high, the proof of this is the fall in the exchange rate of the meme cryptocurrency Shiba Inu after Elon Musk’s tweet. The founder of Tesla and Space X stated that he “bought digital currency only out of interest and never invested in it.” In October 2021, a sharp increase in the rate of the Shiba Inu memcoin was noted – it entered the top twenty largest cryptocurrencies by capitalization.
Experts say that interest in the meme digital coin is increasing during a lull in the sector of cryptocurrencies such as bitcoin. For beginners in the field of investment, the recognition of images becomes an attractive nuance. The meme, popular on the Internet, stands out among serious digital coins and is attractive. In addition, memcoins have a low cost, which also convinces customers to make a choice in their favor.
Despite all the advantages of memcoins, acquiring them is a very risky and dangerous idea. High volatility, a small chance of cryptocurrency success in the market and rapid growth, a huge number of scammers due to the popularity of the digital currency, all this can push away from buying. For example, a crypt created based on the series “The Squid Game” turned out to be fraudulent and collected about two million dollars from inexperienced investors. Users of social networks noted with sad irony that the depositors themselves played squid and, eventually, lost.
The memcoin rate is influenced by the actions of users in different social networks. For example, those who were dissatisfied with his posts turned against Elon Musk, the creator of Tesla: tweets influenced the price of digital coins. Already in the summer of 2021, hackers stood up against Elon Musk, who were not satisfied with the billionaire’s “public tantrums“.
But it was the head of Space X who influenced the growth of Dogecoin’s popularity in the cryptocurrency market. At the end of 2020, Elon Musk shared a post with the word “Doge” on the social network Twitter. One word was enough for memcoin to “shoot” and take the lead among cryptocurrencies.