The world of cryptocurrency is full of surprises, and one of the most interesting trends is memecoins. These are coins inspired by internet jokes, memes, or trends. Unlike serious cryptocurrencies like Bitcoin, Ethereum or Solana, memecoins are about fun and hype. Still, some, like Dogecoin and Shiba Inu, have gained huge popularity and market value.
Memecoins are cryptocurrencies based on jokes or internet trends. They don’t try to solve big problems like Bitcoin does. Instead, they rely on their community and the hype around them. Some become big hits, but most fade away quickly.
Memecoins are created on different blockchains, which are like platforms for cryptocurrencies. Here are some popular ones:
Dogecoin (DOGE):
Dogecoin runs on its own blockchain, which is a fork of Litecoin (and Litecoin is a fork of Bitcoin). It uses proof-of-work like Bitcoin but has faster and cheaper transactions.
Shiba Inu (SHIB):
Shiba Inu is built on Ethereum as an ERC-20 token. This means it can be used with Ethereum apps, like staking or buying NFTs.
Bonk (BONK):
Bonk is the top memecoin on Solana. It’s known as Solana’s “community dog token” and offers an alternative to Ethereum-based tokens.
SafeMoon (SAFEMOON):
SafeMoon is on Binance Smart Chain (BSC). It became popular because it rewards people for holding it by burning tokens to reduce supply.
Memecoins owe their explosive growth to how simple and inexpensive they are to create:
Low Technical Barriers:
Platforms like Ethereum, Solana and Binance Smart Chain allow anyone to create tokens in minutes using pre-existing templates (e.g., ERC-20). No advanced coding skills are required.
Low Cost:
Launching a memecoin on low-fee blockchains like Binance Smart Chain or Solana costs just a few dollars, compared to Ethereum's higher fees. At the moment, the fees on Solana are so low, that it's estimated that 99% of all Memecoins are being generated on Solana at the moment. The Binance Smart Chain & Ethereum Memecoins are mostly created in previous crypto cycle.
Hype-Driven Success:
A catchy name, viral meme, or social media trend is often enough to kickstart a memecoin. Developers don’t need a complex whitepaper or use case to attract attention.
Minimal Regulation:
On Decentralised Exchanges, it's all community driven and there is no oversight. Every single person can create a token and list it on a DEX. This allows for very rapid innovation but also opens the door to scams.
Despite their risks, memecoins offer an intriguing entry point for new crypto enthusiasts. They reflect the playful and experimental side of blockchain technology while highlighting the power of community-driven narratives.
If you’re considering investing in memecoins:
While memecoins can generate quick profits for early adopters, they’re a high-risk investment for several reasons:
Speculation over fundamentals:
Most memecoins derive value from hype rather than utility. Once the hype fades, their prices plummet.
Oversaturation:
The ease of launching memecoins has led to a flooded market. For every Dogecoin or Shiba Inu, thousands of lesser-known tokens fail to gain traction.
Rug pulls and scams:
Many memecoins are launched with malicious intent. Developers hype the coin, attract investments, and then disappear with the funds in a scam known as a “rug pull.”
Lack of long-term value:
Without utility or a strong community, most memecoins are doomed to lose their value over time. Experts estimate that 99% of memecoins will eventually go to zero.
Buying memecoins depends on where they’re listed. Here’s how you can get them:
Regulated exchanges:
Hong Kong Platforms like Hashkey and OSL don’t offer any memecoins.
International exchanges:
Platforms like Binance, OKX, or Gate.io list a lot more memecoins, including newer or smaller ones.
Decentralized exchanges (DEXs):
For lesser-known memecoins, you’ll need to use platforms like Uniswap (Ethereum), PancakeSwap (BSC), or Raydium (Solana). These platforms allow you to buy coins that aren’t available on regular exchanges, but they come with extreme high risks.
Despite their humorous origins, memecoins have proven they can’t be ignored. Dogecoin, for example, has been used for tipping content creators and making charitable donations. Dogecoin, has at the time of writing, a market cap of 60 billion USD and is the 6th biggest Crypto Currency by Market Cap. Additionally, some memecoins have ventured into decentralized finance (DeFi) and non-fungible tokens (NFTs), attempting to build more utility.
However, the long-term viability of memecoins depends on their ability to evolve beyond memes. While many may fade into obscurity, the cultural impact of memecoins like Dogecoin has cemented their place in the history of cryptocurrency.
Do Your Research: Understand the project’s purpose (if any), team, and community before investing. Only Invest What You Can Afford to Lose: Treat memecoins as high-risk investments. On top of that, it is key that you stay updated. The memecoin space moves fast. Follow news, trends, and community updates.
Memecoins may not revolutionize finance like Bitcoin, Ethereum or Solana, but they’ve carved out their own niche as a cultural phenomenon in the crypto world. With their roots in internet humor and community hype, they embody the lighter side of an otherwise complex industry.
However, the ease of creating memecoins and their lack of inherent value make them risky investments. While a handful may achieve long-term success, most will fade away, serving as cautionary tales for speculative traders.