Why Whales Are Betting Big on This New Solana Meme Coin With 9,000% Growth Potential Over SOL and SUI

After that, the price may continue to go up if the coin manages to create a strong community. While some are ranked among the top cryptos by market cap, potential buyers should understand that most meme coins offer little value, and a few are outright scams. The value development of cryptocurrencies can fluctuate greatly, as their value often depends on social media trends or the general sentiment in the crypto community. MEME is the native ecosystem token of Memeland, a platform for creating and sharing memes, NFTs, and other Web3 content.

Meme coins can generally be purchased from crypto brokers or exchanges that offer the respective coins and tokens. Of course, you can also start crypto trading in meme coins with Bitpanda and invest in meme cryptocurrencies like Dogecoin, Pepe, Shiba Inu, or Memecoin. Their uniqueness lies in how they mobilise fans for specific topics or fun content, often leading to viral marketing campaigns that increase their popularity. Many meme coins also use smart contracts on platforms like Ethereum to enable additional functions such as crypto com free $25 cro incentive earn code bitcoin btc bonus money crypto eth staking or access to special community rewards. Despite their often humorous origin, trading meme coins requires an understanding of crypto market trends and risk management, as they are known for their high volatility. Be wary of meme coins where a single entity controls a significant portion of the token’s total supply.

A Few Meme Coins

Also, beware of fake followers or bots that may artificially inflate a coin’s social media presence. Look for information about the team’s experience in the cryptocurrency or technology sectors, as well as team members’ involvement in previous projects. Anonymity or a lack of transparency amongst the team members can be a red flag.

• Instead, interested investors will have to sign up for newer exchanges or learn how to use decentralized exchange platforms to buy these lesser-known coins.
• While meme coins can be highly speculative, there are several key factors and steps traders can take to assess whether a meme coin is legitimate or potentially fraudulent.
• There’s the sense of community and belonging that comes with being part of a shared joke or meme.
• Do your due diligence before you spend money on a volatile investment like crypto.

As the price rises due to increased demand, the original traders sell off their holdings at a profit, causing the price to crash. Latecomers to the scheme are left holding devalued tokens, often resulting in substantial losses. Their value is primarily driven by social media trends, community hype, and sometimes even celebrity endorsements, rather than underlying financial fundamentals. Meme coins work like any other cryptocurrency, taking full advantage of the blockchain and related technology. They’re often built on blockchains that use smart contracts, like Ethereum and Solana.

What is the forecast for meme coins?

This means when a token first launches, the development team creates a new liquidity pool for investors to use to purchase the token. Liquidity pools are smart contracts that allow investors to swap cryptocurrencies without the need for a third party order book or counterparty. For example, an investor would likely exchange ETH for a new Ethereum-based coin on liquidity pools. This is done by depositing both ETH and an amount of the meme coin in a liquidity pool.

Pros and Cons of Meme Coins

For those unfamiliar with the term, a rug pull occurs when the development teams suddenly sell off all their coins after driving the prices up. Investors are the ones with the rug pulled out from under them, leaving them flat broke as the price of that coin falls abruptly to zero. Squid token and snow dog how to display programming code in a blog by pierre debois codex are two of the most recent examples of meme coins that ended in an alleged rug pull. Dogecoin (DOGE), the original meme coin and category leader by market capitalisation, was created in 2013 as a joke to satirise the hype around Bitcoin and other mainstream cryptocurrencies. Its developers, software engineers Billy Markus and Jackson Palmer, intended for Dogecoin to be a fun and accessible altcoin, which is why it doesn’t have a capped supply. According to Zauman, meme coins are usually promoted by their creators on social media platforms to create initial hype and drive up the price.

Why meme coins matter

Memes have always been part of crypto culture—so it was perhaps inevitable that they would be financialized using the same technology that birthed cryptocurrencies. The offers that appear on this site are from companies that compensate us. But this compensation does not influence the information we publish, or the reviews that you see on this site. We what is consolidation in crypto do not include the universe of companies or financial offers that may be available to you. Please note that the availability of the products and services on the Crypto.com App is subject to jurisdictional limitations. Crypto.com may not offer certain products, features and/or services on the Crypto.com App in certain jurisdictions due to potential or actual regulatory restrictions.

Completed audits are usually shared across social media and can be easily found by a quick internet search. As mentioned earlier, meme coins concentrated in the hands of a few investors or the development team are risky ventures. Therefore, ensure that no single entity controls over 5% of the token’s supply. Before we start detailing the key features to look out for in a credible meme coin, let us first define the concept of meme coin itself. Introduced in 2013, meme coins are usually crypto projects built around meme-worthy themes and animals. While Dogecoin may seem like a light-hearted project, investing in this type of cryptocurrency or other meme coins like it carries some amount of risk.

Common Meme Coin Scams to Watch Out For

Nevertheless, some meme coins have ballooned in value, gained multibillion-dollar market caps and garnered celebrity endorsements. The websites for most meme coins advertise that they are meme coins, not meant for anything other than having fun. More popular meme coins claim to have uses (called utility) and point to the fact that they are accepted by some merchants. Many meme coins can be converted to fiat currency because they are listed on a centralized exchange, and therefore have a market value.

Venturing into the world of meme coins is like stepping onto a roller coaster with your investment portfolio in tow. At its most extreme, this takes the form of “rug pulls”—when developers hold a bunch of coins, get people to buy in, and then dump their coins. Some of the most popular meme tokens are Doge-imitator Shibu Inu (SHIB), an ERC-20 token built atop Ethereum, PepeCoin (PEPE), and the Solana-based Dogwifhat (WIF). Meme coins tap into this online economy of ideas, with each coin or token typically adopting the name and iconography of an internet meme. More recently in 2021, Dogecoin saw another price surge as celebrities, including Tesla CEO Elon Musk and rapper Snoop Dogg, began to encourage investors to buy Dogecoin. On May 7 of that year, the price of Dogecoin went as high as 74 cents before tumbling back down to its current price of about 6 cents.