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A memecoin is the term given to a cryptocurrency without any distinct use-case, and are often created off the back of funny or popular internet memes. Arguably the first, and biggest, memecoin was Dogecoin; this project took the popular meme of the shiba-inu dog Kabosu and created a digital currency around it; really as a joke. $DOGE had no distinct use other than P2P payments, and was largely bought into by those in the crypto community as a running joke seeing $DOGE in their portfolios alongside the other far more serious cryptos like Bitcoin or Ether.
Although there’s no intrinsic use, memecoins started to gain value: we now see $DOGE as a top 10 crypto by market-cap.
*The content hereby presented is for informational purposes only. Nothing of this content that is available to you shall be considered as financial, legal or tax advice. Please, keep in mind that trading cryptocurrencies pose a considerable risk of loss.
Just like any cryptocurrency or commodity, the price of a memecoin fluctuates and is affected largely by supply & demand, and any headlines or events. Dogecoin, for example, saw a huge run in price when billionaire and Tesla owner Elon Musk expressed his fondness of the memecoin across Twitter and YouTube. Shiba-inu token ($SHIB) was another memecoin created off the back of Doge that grew in popularity when it was listed on major exchanges. Again, $SHIB had no distinct real-world use, it was simply popular because of the Doge meme and people bought into it expecting the token to follow the same path as $DOGE.
With the introduction of the Ethereum blockchain and its DApps, developers and essentially any network user was given the ability to create their own cryptocurrency fairly easily. This brought on a surge in memecoins, with several being created daily and people began to trade them on the open market. It’s important to note here that the value of anything is largely determined by people deciding something is valuable.
Some memecoins are received with great popularity, and most often you’ll find that people buy it purely because they think other people will thus increasing the price; the same fundamentals as any trade, but far riskier. In general, memecoin trading is seen as more of a gamble due to lower liquidity, a less public ‘company’ or ‘team’ behind the project and no clear cut real-world use-case that other mainstream cryptocurrencies provide.
*The content hereby presented is for informational purposes only. Nothing of this content that is available to you shall be considered as financial, legal or tax advice. Please, keep in mind that trading cryptocurrencies pose a considerable risk of loss.
A memecoin is the term given to a cryptocurrency without any distinct use-case, and are often created off the back of funny or popular internet memes. Arguably the first, and biggest, memecoin was Dogecoin; this project took the popular meme of the shiba-inu dog Kabosu and created a digital currency around it; really as a joke. $DOGE had no distinct use other than P2P payments, and was largely bought into by those in the crypto community as a running joke seeing $DOGE in their portfolios alongside the other far more serious cryptos like Bitcoin or Ether.
Although there’s no intrinsic use, memecoins started to gain value: we now see $DOGE as a top 10 crypto by market-cap.
Just like any cryptocurrency or commodity, the price of a memecoin fluctuates and is affected largely by supply & demand, and any headlines or events. Dogecoin, for example, saw a huge run in price when billionaire and Tesla owner Elon Musk expressed his fondness of the memecoin across Twitter and YouTube. Shiba-inu token ($SHIB) was another memecoin created off the back of Doge that grew in popularity when it was listed on major exchanges. Again, $SHIB had no distinct real-world use, it was simply popular because of the Doge meme and people bought into it expecting the token to follow the same path as $DOGE.
With the introduction of the Ethereum blockchain and its DApps, developers and essentially any network user was given the ability to create their own cryptocurrency fairly easily. This brought on a surge in memecoins, with several being created daily and people began to trade them on the open market. It’s important to note here that the value of anything is largely determined by people deciding something is valuable.
Some memecoins are received with great popularity, and most often you’ll find that people buy it purely because they think other people will thus increasing the price; the same fundamentals as any trade, but far riskier. In general, memecoin trading is seen as more of a gamble due to lower liquidity, a less public ‘company’ or ‘team’ behind the project and no clear cut real-world use-case that other mainstream cryptocurrencies provide.
*The content hereby presented is for informational purposes only. Nothing of this content that is available to you shall be considered as financial, legal or tax advice. Please, keep in mind that trading cryptocurrencies pose a considerable risk of loss.
