Meme Coins: What's all the fuss about?
If you're wondering how you found yourself in a petting zoo during this year's bull run you’re not alone.
What do I mean by that? Dogs, cats and rabbit themed cryptocurrencies are just some of the strange coins being created on a daily basis.
What first started as a joke has taken over the internet in the last 3 months. Love it or hate it, these coins are here to stay. Aside from making millionaires overnight, most of these currencies don't actually bring any utilitarian value, instead promising their community a one way ticket to the moon. But is there enough fuel to rocket this ship?
What is a Meme Coin?
These coins are initially started as a joke and rely heavily on their novelty names to promote themselves. Take for instance, Dogecoin. The internet's best friend is known widely amongst individuals and was the very first meme to be minted as a cryptocurrency.
Now we can’t speak for all of them but plenty of meme currencies have since evolved into cryptocurrencies with real projects and teams behind them. In order to entice the average "degen" into buying, tokenomics such as low market caps and auto-deflationary elements have recently been used to further pump the coins price.
Most of these coins have found a home on the binance smart chain network. With the ability for just about anyone to create their own coin coupled with low gas fees and fast transactions, this recipe for the BSC network allows for an abundance of projects to be started.
Is 100xCoin a Meme Coin?
Some of you veterans who own 100xCoin may be familiar with the previous name of Ken The Crypto's first love. For those of you who are unfamiliar, 100xElon was the previously known name for 100xCoin. What started as a joke quickly turned into a serious project.
When 100xElon transitioned into its successor 100xCoin it quickly broke the typical mold of “just” a meme currency. With great tokenomics protecting it from pump and dumps, a focus on anti rugpull elements such as a doxxed team and full external audits, which was given the green light. 100xCoin has proven itself to be a real project.
100xCoin also brought use cases such as an upcoming launchpad for other projects, charity work, and pro-athlete focused sponsorships.
There are many new projects in crypto, however few have loyal communities like 100xCoin and even fewer are able to stay relevant well past their pump and dump expiry date.
Why are Meme Coins "mooning"?
There's a few reasons that could be attributed to the madness of the Meme Coin landscape at present. Just a few to ponder:
The Bull Market
When you have millions of dollars flowing into cryptocurrencies it's only a matter of time before the degens figure out how to make their own. This bull cycle has seen many different trends such as NFTs and now meme currencies seem to be the flavour of the month but with no signs of slowing down, more and more of these coins are likely bound to surface.
A massive contributing factor for the growth of these coins are social media platforms. Tik tok videos, twitter hashtags and popular reddit page, CryptoMoonShots has allowed for essentially free marketing and a community of holders shilling their own coins.
Fear of missing out has also done wonders for the crypto meme market . No one wants to be that guy, especially when 1000% gains are boasted all over the internet by some sort of astronaut themed moon coin.
It's simply fun!
Meme currencies are inherently enjoyable. To put it bluntly, investing in these is a gamble. Although this aspect is definitely entertaining, it isn't the full picture. Being part of a community and engaging with like minded people from all across the globe is a unique experience and may be a reason as to why retail investors continue to choose these currencies.
Be Safe Out There!
Although meme currencies seem to be getting plenty of praise and hype, it's important to realise the reality is not all sunshine and rainbows. The most risk can be found in these types of coins and with cryptocurrencies being one of the most volatile investments. Extreme caution should be practiced at all times.
The possibility of losing all investments in a coin named after a dog may leave a sour taste in the mouth. However, spending a little time researching the team and confirming good fundamentals is a great place to start.
Extreme volatility is another factor to take into account. You’ve heard it all before, diamond hands and paper hands are commonly used slang, however, experiencing your profile being up over ten times and then down to zero is not for the faint of heart.
This can be a fun way to start investing into crypto. Just remember to invest only what you’re willing to lose and always do your own research.