What is a Meme Coin?
The cryptoverse is awash with stories of record returns from cryptocurrency meme coins like Doge and, more recently, Shiba Inu.
However, does the hype match the reality and how wise is it to invest in a meme stock?
What is a Meme Coin?
A meme coin is essentially a cryptocurrency which is based on a joke or a meme and uses that tenet as its primary marketing feature.
The most well-known meme coin is Doge, which is based on the famous meme of the same name.
However, unlike other cryptocurrencies, meme coins are generally used for trading or investing with little to no utility.
That said, meme crypto Shiba Inu has seen a massive spike in interest over the last six to 12 months and has recently been accepted for payment in a Paris restaurant.
Many cryptocurrency projects are a result of open-source technology essentially meaning that the creators share the code which enabled them to build the original project.
This revolutionary approach to development has helped provide the catalyst for the boom in crypto over the past three to four years. Many new entrants ‘fork’ from an original code to produce an entirely new coin with a slight modification. Doge, for example, is a fork from the original Litecoin code.
Meme Coin Hype
So, what is all the hype about? As I mentioned above, the majority of meme coins on the market today are used for trading and investment purposes with buyers looking for an opportunity to purchase the next Shiba or Doge coin before they hit the big time.
With stories of $8,000 becoming $5.7 billion in a little over a year it is easy to understand why. However, with 222 meme coins listed on coinmarketcap.com, picking the next investment rocket may be easier said than done.
A Serious Investment?
As more capital pours into meme stocks people will continue to sit up and take notice. This, in turn, is bringing more serious investment and leading to developers looking for ways to upgrade the network and provide meme coins with an actual use case which is something we have seen this week in Paris.
Author: Mark Harridge
Mark Harridge first came across Bitcoin and began to use its peer-to-peer payment network in mid to late-2011. He quickly understood that this technology would change the world. Mark is passionate about crypto adoption, from a macro economic and institutional perspective, and the numerous factors that fuel the relentless march towards individual self sovereignty and the decentralised society of the future.