Whoever thought that cute and funny memes on the internet would one day turn into valuable currencies? That’s the story of meme coins—internet sensations that became popular digital tokens. Even though meme coins peaked around 2021, they remain relevant today, albeit still quite risky.
The most popular meme coin, Dogecoin, ranks among the top 10 cryptocurrencies in market capitalization. Despite losing their hype over the years, meme coins might be down but they are surely not out.
The Journey of Meme Coins
The first meme coin ever created was Dogecoin, launched in 2013. Two software engineers, Billy Markus, and Jackson Palmer, came up with Dogecoin (DOGE) as a parody of the other cryptocurrencies which were increasingly popular. To their surprise, many crypto enthusiasts were attracted to the coin and formed the Doge Army, rallying behind the token and boosting its value.
The coin became so popular that even the richest man in the world then, Elon Musk, referred to Doge as “his favorite cryptocurrency” tweeting and talking about it often. It was around this time that Dogecoin hit its highest value of $0.93 per token.
A curious trend among meme coins is that when one successful token emerges, more tend to follow. Think of them as copycats, and that’s how Shiba Inu was created. Based on the same Shiba Inu dog as Dogecoin, the Shiba Inu (SHIB) token was created by an unknown developer called Ryoshi. Like Doge, Shiba Inu became popular on social media leading to a huge following of the Shib Army. The currency was also backed by influential figures like Ethereum’s founder, Vitalik Buterin.
From Hype to Crash
In early 2021, meme coins were on a bullish trend and the “dog meme” concept had caught on, leading to other similar tokens besides Dogecoin and Shiba Inu. Tokens such as Akita Inu and Kishu Inu sprang up around this time and it was a good ride until the inevitable happened.
In late 2021, the bear market began, and most meme coins, based on social media hype, tanked dramatically. With more push for crypto regulations, environmental concerns about mining, and market corrections, the crypto market generally declined, but meme coins were hit hard.
However, as things started to look up in early 2023, a new meme coin took the spotlight in an attempt to revive this category of tokens. The crypto was PEPE, based on the famous meme character Pepe the Frog. Even though PEPE didn’t perform as well as Dogecoin or Shiba Inu, it ranks among the top 30 cryptocurrencies in market cap.
Characteristics of Meme Coins
How do you spot a meme coin and what do they have in common? For starters, it will be based on a funny meme you probably came across on Twitter, Reddit, TikTok, or someplace online. Secondly, it will have a celebrity or influencer endorse it and will have much hype online. A too good to be true hype that will raise your eyebrows. That’s why some well-known meme coins end up being pump-and-dump schemes or rug pulls orchestrated by fraudulent creators.
Most meme coins are short-lived and only stay afloat as long as their hype can carry them, which isn’t that long. Just as internet-breaking memes come and go, that’s how meme coins operate. Some, like Dogecoin, have tried to hold on for a while.
Meme Coins Vs Mainstream Coins
Meme coins like Dogecoin and Shiba Inu have several differences from mainstream coins like Bitcoin, Ethereum, and Tether. While meme coins leverage satire and humor to propel them forward, tokens like BTC and ETH are popular based on their functionality.
This brings us to another difference they have— value. Coins such as Bitcoin derive their value from the scarcity, utility, and demand of its tokens. Meme coins, on the other hand, don’t have a particular use case and are a “joke coin” riding on the popularity they get online.
Mainstream tokens like Bitcoin, Ethereum, and Ripple have several applications. Despite the crypto market being volatile, one can hold them for their value. They can also be used for trading and even gaming. Crypto gaming is becoming quite popular because of the blockchain platform which makes games provably fair and transactions much faster.
Coins like Bitcoin and Ethereum are usually the first to be supported by crypto casinos and gaming sites because of their reputation. Once you enjoy crypto games like slots, roulette, and blackjack, you can easily cash out with mainstream coins. That’s why you’ll find most real money online casinos will try to entice the crypto community by supporting popular and more stable tokens. In a list of available crypto payment methods, not many gaming sites will include meme coins as their primary crypto method.
So, does that make meme coins worthless? Certainly not, just as a meme is laughable and funny, the same relaxed approach is needed for meme coins. Buy meme coins to feel and be part of the culture, and not to invest seriously with plans of making a killing. Even though it’s possible to make money with meme coins, the likelihood of disappointments is higher.
