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Views: The year 2024 can be safely called the year of memes and games for the cryptocurrency segment. First there were the memcoins that burst very loudly into the hearts of traders and investors at the beginning of the year: PEPE, WIF, SHIB, FLOKI. It was thanks to these memcoins that many people enriched themselves from flat ground.
People like to look for value where there is none. And memcoins have become a great proof of this thought. PEPE capitalization is over $3 billion, and daily trading volume averages from $500 thousand to $1 billion.
Memcoins have no specific purpose or fundamental for the cryptocurrency segment. People make up their own meaning for them. Some buy memcoins as a joke, some as a protest, and some just want to earn their blood money.
Memes are no longer just pictures on the Internet that you can laugh at or think about. They are an entire culture that has suddenly become firmly entrenched in our minds. They are watched all over the world and people use them to express their opinions, protest or just want to describe a situation.
So it's not surprising that the symbiosis of memes and cryptocurrencies have had such a strong impact on coin rates and on people. Everyone loves memes, and everyone wants to be a part of something bigger. It is this idea that gives people hope for something more than just a virtual coin.
Memcoins - what is this cryptocurrency
For general understanding, they are joke coins that were usually created based on popular internet memes, cultural phenomena or events. Most memcoins have no real value or practical application. They are focused on short-term speculative investments.
Also, memcoins usually do not have any real product, technology or business model behind them. Their value is based on the enthusiasm and hype of the community.
However, if one is inspired by a project or simply buys some meme coin as a joke, one becomes part of a larger community. This thought is inspiring, even though it is not usually realized.
In short, memcoins are coins that have no practical value but have a spiritual and cultural connection.
What accounts for the popularity of memcoins?
First of all, the popularity of memcoins correlates with the popularity of memes themselves.
Since memes are one of the major cultural phenomena of our time, and cryptocurrencies are a young sector of new finance, meme-related tokens don't really need to explain why they are so popular.
Looked at another way, the popularity can be explained by the fact that people want to make a lot of money and not put much effort into it. Seeing that someone with $100 made $1 million in a couple days by literally buying PEPE on an ICO or buying before listing on the Binance exchange, people get shocked that this is reality and not fiction.
After all, the exchange rate can be viewed at any time, and they run to invest their money in something they can't explain and their main argument becomes: well, someone has made money on them! How am I worse?
Influencers of projects fuel interest in meme-tokens by releasing news or sublimating artificial interest in the coin so that it is always on the lips of Internet users, and most importantly, so that there is always news that the rates are growing and will continue to grow.
What factors influence the rate of memcoins
Let's look at 8 factors that cover the mass user. But don't forget that there are also individual causes of price fluctuations that we, ordinary everyday people, may not be aware of.
1. Social media influence
Memcoins are heavily influenced by community activity on social media sites like Twitter, Reddit, and TikTok. Hype, discussions, and mentions influence prices.
2. Tweets of influential personalities
Comments and posts of famous people, especially Ilon Musk, have a significant impact on the memcoin exchange rate.
3. trendiness and popularity
Memcoins are often subject to short-term hype when they are at the peak of their “trendiness” and popularity.
4. the FOMO effect (fear of missing out on profits).
Buying memcoins on the rise is often driven by an emotional desire not to miss out on the opportunity to make a quick buck.
5. Retail investor speculation
Memcoins attract a large number of retail investors focused on quick speculative trades.
6. Lack of fundamental value
Memcoins typically have no real product, technology, or business model behind them. Their price is based only on the enthusiasm of the community.
7. High volatility
Sharp and unpredictable fluctuations in the exchange rate of memcoins reinforce their speculative nature.
8. Lack of regulation
Memcoins are often not subject to financial regulation, which increases the risks for investors.
Risks of this cryptocurrency and how to reduce them
Memcoins should belong to the third rank of assets to invest in.
The first ranked assets are Bitcoin and Efirium.
Rank two assets - fundamental altcoins such as Solana or Litecoin.
Third rank assets - altcoins that have no fundamental value.
The assets are characterized by sharp and unpredictable rate fluctuations, which makes them unsuitable for long-term investments. The lack of fundamental value of memcoins makes them purely speculative assets, focused on short-term profits. Most memcoins have no real product, technology or business model behind them. Their value is only determined by the enthusiasm of the community. And also the exchange rate of memcoins is easily manipulated by certain influential market participants.
To summarize, cryptocurrency is a high-risk asset, and memcoins are high-risk assets squared.
To reduce the risks from owning memcoins in your portfolio, you need to reduce their share to 5-10% and no more. As much as you would like to see your crypto portfolio ics faster, trust me, memcoins are not the answer.
Diversify your portfolio and don't keep the allotted part of the capital for memcoins in one meme coin. It is better to spread your deposit over several coins, reducing your dependence on a single asset.
What role do memcoins play in the cryptocurrency market
If we consider fundamental aspects, such as: innovative blockchain technologies or technological solutions of using cryptocurrencies in the real world, it is definitely not about memcoins.
In general, memcoins play a rather ambiguous role in the cryptocurrency market:
1. Attracting new investors
Memcoins attract a large number of new, often inexperienced, retail investors into the cryptocurrency ecosystem. This broadens the base of market participants.
2. Creating hype and volatility
The hype surrounding popular memcoins leads to significant price swings, which increases the overall volatility of the market.
3. diversion of capital from other projects
Speculative interest in memcoins can divert capital away from investments in more promising cryptocurrencies and blockchain projects.
4. Demonstrating the power of the community
Successful examples of memcoins such as Dogecoin show the impact of enthusiasm and the coming together of enthusiastic investors.
5. Bringing attention to cryptocurrencies
The popularity of memcoins on social media helps spread awareness about cryptocurrencies to the masses.
The most popular memcoins
For the only criterion for assessing the popularity of meme-tokens, it would be reasonable to take the capitalization of the coin.
The reasoning behind this is that people will not invest their money in something that no one needs and is not popular. The greater the concentration of funds in an asset, the more popular it is and more in the masses than assets with small capitalization.
Top 5 meme tokens that are popular among their peers:
DOGE
Objectively, the most expensive dog on the planet. With a capitalization of over $15 billion, the meme token is a favorite of Ilon Musk. There was a time when you could buy a Tesla car for DOGE. All in all, this is a really good boy.
SHIB
Sobaken, whose capitalization is almost half that of its larger counterpart, but still has a rather large amount of more than $8 billion. It is no less a good boy than DOGE. The coin is based on the same idea - a Shiba Inu dog.
PEPE
The same PEPE frog that has settled in our hearts and now in our wallets. Capitalization of the asset is over $3 billion. It is considered the fundamental of meme-coins.
WIF
Another project that was inspired by Shiba Inu's dog, but already in the hat. The capitalization of the coin is just over $1.7 billion.
FLOKI
I would have liked to see at least another breed, but no! This meme asset is also inspired by a dog breed Shiba Inu, but this time this dog belongs to Ilon Musk, and Floki is his name. The capitalization of the asset is almost $1.3 billion.
Where and how to buy memcoins
There are several main ways to purchase memcoins:
1. Centralized cryptocurrency exchanges
Large marketplaces such as Binance, Bybit, and OKX often list popular memcoins.
Here, you can buy memcoins by exchanging them for other cryptocurrencies or for stablecoins.
2. Decentralized exchanges (DEX)
Memcoins are also available on decentralized exchanges based on smart contracts.
For example, PancakeSwap, Uniswap, and SushiSwap allow you to exchange one token for another.
3. P2P platforms
There are special P2P platforms where you can directly buy memcoins from other users.
Payment is usually made via bank transfers, e-wallets or cash.
4. Mobile apps
Some mobile cryptocurrency wallets, such as Trust Wallet, allow you to directly buy memcoins with fiat.
This is done using built-in services integrated with exchanges and payment providers.
Conclusion
Memcoins are no longer a young cryptocurrency sector, but it could only really “shoot up” in 2024. In the presence of certain risks, these assets look promising options for investment, but only if the investment strategy is followed.
To add meme sector tokens to your crypto portfolio, it is necessary to study each project in detail. They differ in community, developers, and idea. It is important to know ahead of time what trends in the future may lead meme tokens back to hype and mass hype.
Frequently Asked Questions
1. What is the very first memcoin and when was it released?
The first memcoin is considered to be DOGE, and it was released back in 2013. Thanks to it, Shiba Inu dog fashion continues to be relevant.
2. How to determine which memcoin is worth investing in?
Study in detail the development team, and most importantly, how active and loyal the project's community is. Remember that tokens in the meme segment belong to particularly risky assets. With the help of Veles bots you can place a grid of orders on the selected asset and algorithms will select the most optimal entry point for you. The selected criteria for entering and exiting a position will be met without unnecessary movements and emotions. Users of the platform actively invest and quietly go about their business, receiving passive income.
3. What are memcoins for?
The goals can be individual, but if we generalize, it is a form of support for modern meme culture. The second, but not least, purpose is to make quick profits from highly volatile asset price movements.
