Why are They so Popular?
Cryptocurrencies have a huge trend on social media; there has been a considerable jump in the population of meme coins. Nowadays, meme coins dominate the cryptocurrency market. Now the question arises: what is a meme coin, and why are they so popular?
What are Meme Coins?
Meme coins are cryptocurrencies developed as a joke, usually inspired by memes on the internet and social media. Meme coins got famous in a small amount of time, mainly because influencers and investors promote them online.
The original meme coin is Dogecoin (DOGE), which was created in 2013 based on a meme, but meme coins gained popularity in 2021, and COVID-19 had a significant effect.
As anybody can create cryptocurrencies, developers have created many meme coins after the release of Dogecoin (DOGE). There is more than 5,000 meme coins in the cryptocurrency market. Meme coins fill no purpose at this point, and most of them were created to make a quick buck.
Why are Meme Coins so Popular?
Meme coins gained popularity in 2021. They comprise a significant part of the crypto market, and a major reason for such popularity of meme coins is the influence of influential personalities.
Public figures like Elon Musk have been a significant influence on the crypto market. His impact in cryptocurrency causes not only visibility but also the price change of meme coins.
His immense influence can be determined by an interview, where he said Dogecoin is a hustle, caused a price drop of around 30%. But later that week, Elon Musk tweeted that he is “working on with the developers of dogecoin to improve the system.” This single tweet caused a price hike, which made up for the past price drop.
Even though these altcoins are called meme coins, they still have a massive impact on the crypto market because of some of the features they offer. Some of the famous meme coins are Doge, Shiba, Cumrocket, Banano, etc.
If you are wondering how to buy meme coins, you can purchase them similarly like you buy any other major cryptocurrency. You have to go to a cryptocurrency exchange, and you can buy meme coins.
Even though meme coins are prevalent in 2021, there still are significant disadvantages associated with them. One of the downsides is that these coins are developed only for meme purposes and don’t have any real-life purpose, making them meaningless.
Some of them also have an unlimited supply, which causes a massive effect on the cryptocurrency’s price on a long-term basis. They are far more volatile than other major cryptocurrencies because these coins are developed as a joke.
Meme coins are very famous nowadays, but investing in them can be risky as they are far more volatile than other cryptocurrencies. So, if you are thinking of investing in meme coins, be careful and do your research.