Currently, there are about 1.1 billion coins in the market. As many as 800 million of these coins are reported to be dead with no transactions taking place on the blockchain for over a year. The number of abandoned or unclaimed coins is far less than that, but it is very high compared to the total number of coins in the market.
Meme Coins are coins that have memes on them, of course. MEME is abbreviated for Memetic / PepeCoin which was the first coin with a meme on it – Pepe the Frog of 4chan fame! There are other memes on coins too – DOGECOIN has Doge on it and COINYE has YeetKings on it.
The meme coins are traded like any other crypto coin and some of these have gained popularity, increasing their value significantly. There are memes for almost everything now – CryptoKitties has its own memes, so does Dogecoin! There’s even a Reddit community to share memes related to various coins.
Meme Coins can be divided into three:
- Memes that serve no other purpose than existing only on the meme coin
- True currencies like Bitcoin and Ethereum
- Hybrid coins like PepeCoin which bake in a currency code
Are Meme Coins Just a Mere Bubble?
Meme coins are an interesting parallel universe to the main currency space, which is filled with debates on regulations, forks, and price. They are a complete antithesis of what cryptocurrencies were built for – no regulations or leaders!
However, there’s one thing that brings them together – they are traded just like any other currency with all its own trends, ups, downs, and fluctuation.
This brings us back to the original question – are meme coins a profitable trend? Well, it can be if you can time your trade right. The best way to do that is to watch the market patterns of each type of coin. Meme coins have their own community, which can make or break a coin based on certain events or memes.
So if PepeCoin (PEPECOIN) and DogeCoin (DOGECOIN) both hit a new high at the same time, it’s likely that they will both learn from each other and continue to increase or one of them will lose significance. You can then sell off your PEPECOIN and DOGECOINS while they are high, and buy higher quality memes like BAT or Bitcoin.
During the last bull run, meme coins were a popular talking point because of how profitable it was to pick them up at their lowest value and sell when they hit their all-time highs. But meme coins should not be taken lightly. Just like any other coins, they are subject to hacks and frauds, where scammers dupe users out of their coins by pretending that their transactions did not go through or that the coins have been sent when in reality the user never received them.
Should I Invest in Meme Coins?
Given what we said so far, the question is: Should you invest in Meme coins?
The ‘Should I’ question is always difficult to answer! But in this case, it’s even more so. As mentioned before, this market is full of scammers who are looking to take advantage of the lack of regulations in this market segment.
So when you look at meme coins ask yourself these questions:
- Is there a community supporting this meme coin?
- Is there a history of transactions taking place on this blockchain?
- Are people actually using the currency code baked into the meme coin or is it just for show?
Do not be afraid to do research. Look up the developer teams behind each coin, check out what they are working on right now, and take note if any of them have been involved with any scams in the past. Additionally, read reliable sources online, such as this FlokiInu Coin investment guide, that will help you make a good and informed decision and whether to put your money in Meme coins or a major crypto such as Bitcoin.
If you’re still lost, there’s no harm done in holding on to your meme coins and waiting for your luck to change!