The rise of meme coins in the crypto space was totally unprecedented. People have asked, why are these tokens so popular in 2021?
In 2021, the crypto space is experiencing something quite interesting. The market is getting flooded with memes. These memes tags are being turned into cryptocurrencies, and it seems like people are actually buying into them!
In this article, we’ll explain the rise of the meme token, tell you about some of the most popular cryptocurrencies of this kind, and give you the low down on where you can get your hands on them. Read on to find out more.
What Are Meme Tokens?
Meme coins are essentially cryptocurrencies that are inspired by jokes (i.e. memes) on the Internet and social media. The first, and most popular cryptocurrency of this kind is Dogecoin, which was created back in 2013. DOGE was created as a parody, however today it is a successful crypto.
Most of the time, these crypto options are considered a joke. However, many investors believe that they should not be treated that way. Many of these meme tokens have done fairly well in the cryptocurrency arena, and some people have made loads of money from them already.
The only difference between meme coins and “proper” crypto options like Bitcoin and Ethereum is that the latter was created to solve real-world problems and thus can be used in the real world. Meme coins, on the other hand, currently have no purpose or utility.
The Rise Of The Meme Coin
In 2021, meme coins have skyrocketed, both in value and in variety. After the success of Dogecoin, and with the increasing acceptance of crypto in general, the market is booming with meme coins. Their popularity is largely linked to their connections with social media influencers and celebrities. Since these people are being paid to advertise the coins, the public interest in them is rising rapidly. However, many attribute the rise of meme coins to Elon Musk, who is an avid supporter of DOGE.
Popular Meme Tokens
There are way too many meme tokens for us to detail them all here — there are over 90 of them! However, we’ll give you an overview of some of the most popular crypto meme options below.
Dogecoin (DOGE)
Based on a meme of a Japanese dog called a Shiba Inu, this is the most successful meme coin thus far. It was created in 2013, by two software developers, and has received support from big names like Elon Musk.
Safemoon (SAFEMOON)
Safemoon was launched in March 2021. It is totally community-driven. The most unique thing about Safemoon coins is that Safemoon has incorporated a feature into its protocol that demotes the selling of its native tokens.
Shiba Inu (SHIB)
This token came about in April 2021. According to the official website, Shiba Inu was created as “an experiment into decentralized spontaneous community building”. It is not to be confused with DOGE, as they are different coins.
MonaCoin (MONA)
MONA is based on a meme of a cat-looking figure that was created by an anonymous developer. The token has a maximum supply of 105 million and is approved by Japan’s Financial Service Agency.
HogeFinance (HOGE)
HOGE combines yield farming with the aspect of memes and it hopes to make use of ETH’s DeFi infrastructure.
There are many other cryptocurrency meme tokens that we have not explained here. These include Pepe Cash, Loser Coin, Memecoin, Forge Finance, and more.
How To Buy Meme Coins
Purchasing meme coins is similar to buying any other type of cryptocurrency. The first thing you need to do is register on an exchange platform and buy coins with fiat money (or trade them with other cryptocurrencies). Meme coins are available on most of the large exchange platforms. For those in the United Kingdom, you will soon be able to use coinpass to get your hands on DOGE!
What Are The Downsides Of A Meme Token?
As with everything, there are some downsides to meme tokens, such as:
•Many meme coins have no real purpose.
•Some meme coins have an unlimited supply, unlike cryptos like Bitcoin which are finite. This will have a considerable effect on their long-term value.
•Since many of these tokens are “jokes”, they have a tendency to be extremely volatile.
•These coins are launched quickly, which means there is a tendency that you may lose money in the long term.
You should keep these downsides in mind before deciding to invest in these cryptocurrencies.
Final Thoughts
What may have started as a joke, no longer seems that funny. Meme coins are rising in value and in popularity, with entrepreneurs like Elon Musk getting in on the action. Whether you jump on the bandwagon too is totally up to you, just remember to keep all the facts in mind.
Blog URL: Why are meme tokens so popular in 2021? https://coinpass.com/en/blog/markets/why-are-meme-tokens-so-popular-in-2021
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