What is a memecoin?
Have you ever wondered what a memecoin is? In the fascinating world of digital currencies it is essential to stay up to date with the latest trends and investment opportunities.
In this article we will tell you about the mysterious world behind memecoins, we will really analyze what they are, and we will analyze the benefits and risks when investing in them.
What is a memecoin?
As their name indicates, memecoins are a category of digital currency that finds its origin on the internet, and according to the Royal Spanish Academy a meme is an “image, video or text usually distorted for cartoonish purposes, which is spread mainly through from Internet”
These digital currencies often take the name of a meme that has become very popular and are launched on the market without any technical fundamentals.
Benefits of investing in a memecoin.
One of the key points of memecoins is being able to enter the “project” as soon as it is created. We mean being able to invest a few dollars as soon as they hit the market, since some memecoins have been able to experience explosive increases in their value in a short period of time, which has led many investors to obtain significant profits.
For this type of investments it is always good to find that narrative that provides you with that information, and thus be able to anticipate events.
Risks of investing in a memecoin.
What we do have to be clear about is that memecoins are digital currencies with a very high risk when investing, since they are highly volatile and can lose their value very quickly. Furthermore, with the lack of regulation, the investor is practically unprotected.
The main risks that we may encounter when investing in memecoins are the following:
Extreme volatility.
Volatility is the inseparable characteristic of memecoins, since their value is mainly based on speculation and the emotions of the community, so their value can rise and fall in a matter of hours or minutes.
Which means that in that time you could win a lot of money or lose practically everything.
Lack of fundamentals.
Unlike other cryptocurrency-related projects, these types of digital currencies typically lack fundamentals. Which means that it is pure speculation and there is no type of future that suggests that the currency will be maintained over time.
Exposure to scams.
Due to the lack of regulation in this market, memecoins are a great opportunity to scam newcomer investors. That is why it is essential to study who is behind that memecoin and verify the authenticity of the team.
Emotional impact.
Due to the extreme volatility of memecoins, investors can become emotionally drained, as these types of investments often cause stress and anxiety by following price movements so closely.
Most popular memecoins.
Dogecoin (DOGE)
Dogecoin is one of the most famous memecoins on the market. It was created by engineers Billy Marcus and Jackson Palmer as a peer-to-peer “prank” payment system.
This memecoin was officially launched on December 6, 2013. That same year, great growth could be seen, as it went from $0.00026 to $0.00095.
It was then very successful with the help of Elon Musk, since it is a cryptocurrency about which he talks a lot and contributes to the price rising, although it is also highly criticized for possible manipulation of the currency.
The all-time high according to CoinGecko is $0.731 with a market capitalization currently of $8.83B.
Shiba Inu (SHIB)
Shiba Inu is an ERC20 digital currency that was created in late 2020 to compete with Dogecoin.
It was a coin with practically no fundamentals, but today it is building a very complete good ecosystem called ShibaSwap.
According to CoinGecko, the minimum price of this coin was $0.0000000000563 in 2020, reaching its maximum price of $0.0000861 in October 2021.
It currently has a market capitalization of $4.34B.
Pepecoin (PEPE)
Pepe is a coin that has been very famous for a few months for its great rises and falls.
It was created based on the character “Pepe the Frog”, made by Matt Furie in his cartoon “Boy’s Club”.
It was launched in mid-April 2023, and in less than three weeks it already had a market capitalization of $420 million, thus entering the 100 coins with the highest market capitalization.
According to Coingecko the historical minimum has been at $0.0000000551 and the maximum at $0.0000043.
Currently a market capitalization of $270.6 million.
Other famous memecoins that have been in fashion or are becoming popular are:
Milady Meme Coin (LADYS)
Wall Street Meme (WSM)
AlDoge (AI)
Turbo Coin (TURBO)
These are some examples of the hundreds of memecoins that exist on the market.
As we have mentioned previously, you have to be very careful with this type of digital currencies, since their value can go up and down in a very short time, with the risk that this entails.
If you want to have access to this type of narratives, you can access through our website.
