Investing in meme coins is a risky and speculative game. But it’s also profitable to those who have their finger on the pulse of what’s going to be popular in the future. I’m here to tell you that if you’re thinking about investing in meme coins, it’s probably not worth the risk—but that doesn’t mean you can’t make a profit in a different way.
With the recent popularity of memes, there have been several companies that have popped up attempting to use meme-based coins to raise money. While this is growing in popularity and hype, it’s important to consider whether this is something you should do.
What Are Meme Coins?
A meme coin is a cryptocurrency that originally started as a joke, but has later gained enough popularity to be considered a legitimate currency. A meme coin can be used to buy and sell goods and services just like any other cryptocurrency.
This can also mean that meme coins are sometimes traded for real money on the free market, just like bitcoins. Since these joke coins have no value, there are some that have been designed to have especially cumbersome or even impossible transactions that require immense amounts of computing power.
These ridiculous hurdles make it impossible for someone unfamiliar with cryptocurrencies to actually use them effectively. Some of the most popular meme coins in existence are Dogecoin, Coinye West, Pepecash, and Trumpcoin.
What Contributes To The Popularity Of Meme Coins?
There are many factors that contribute to the popularity of meme coins. One is the simple fact that these are coins with popular memes on them, which gives them a little extra marketing push right out of the gate.
Another is the way some of the memes themselves were created—because they emerged from a grassroots movement, they’re intrinsically connected to a sense of originality and authenticity, which means that they carry that same feeling with them when they end up on money.
Meme coins also attract attention because they’re something new—they’re not just your average coin flipping on its side or otherwise being modified. This can make people curious to check them out and see what all the fuss is about.
Finally, because there’s so much variety in meme coins in terms of their features and styles, there’s something for everyone—you don’t have to worry about buying a coin for someone who doesn’t like sports and ending up with a coin that has a giant football helmet on it.
History Of Meme Coins
The meme coins were originally introduced by the US Mint in 2010, when they released the first series of coins with a commemorative face value of $0.99 that featured designs from popular internet memes. A total of four series were produced in all.
The first series featured the “I Can Haz Cheeseburger” cat, and its popularity resulted in not one but five variations of it being produced for collectors. The second series featured a LOLcat, and the third series was based on dancing babies (now who doesn’t love those?).
The fourth and final series of coins was issued in 2014 and featured a meerkat, a grumpy cat, a frog wearing sunglasses, and another LOLcat. There have been various reports that these last four coins will be the only ones to ever be minted without having an actual monetary value due to their popularity.
The SHIB/USDT is created by the same people behind DOGE/USDT and Pepe Cash USDT. These meme coins are digital tokens backed by nothing, but the faith of their creators. These coins were launched as a joke, but have since been circulating the internet and gaining an unfortunate following.
Are Meme Coins Worth Investing?
There is a good chance of you making some money, but it all depends on what you are hoping to gain. For some, the fun factor alone is enough to keep them interested. However, there are also many who do want to make a profit off memes.
While it’s true that meme coins are trendy and have been gaining popularity among investors in recent years, it’s also true that they have a limited life cycle. Because they’re so new, the market is not yet saturated with them.
However, as they become more popular and more people start investing in them, their prices will inevitably rise. At that point, the price will start to be driven by factors besides their novelty and popularity—factors like supply and demand. And since there will likely be an oversupply of new meme coins at that point, their resale value may drop significantly.
That being said, there are still many reasons why meme coins could be worth investing in right now—if you’re looking for a high-risk/high-reward investment or want to get a jump on this trend before it’s too late.
Risks Of Investing in Meme Coins
While meme coins are trending right now, there are still plenty of risks involved in investing in them.
- You can never be entirely sure that the creator of a meme coin isn’t just trying to cash out as soon as they can, which could send the price plummeting back down at any time.
- They might also be subject to government regulations, as it’s impossible for them to know what might trigger a crackdown on memes by the SEC.
- The first risk is that memes are incredibly easy to replicate. There’s no way to stop anyone from replicating your meme coin, so they can easily flood the market with copies of your coin that do not hold any value. They might even be able to take over all of your exchanges.
- Another risk is that a meme will eventually stop being funny or relevant and will fall out of use. That means people won’t want those coins anymore, and the value will drop dramatically.