What is a Meme Coin?

What are meme coins?

A meme coin is usually a coin inspired by a joke or an internet meme that circulates a community. For instance, Dogecoin created by Billy Markus is a famous meme coin that was intended to mock Bitcoin.

It was created from a viral meme of a Shiba Inu which explains the dog face that represents it. 

The original "Doge" meme image
The original “Doge” meme image

Then, there’s a Shiba Inu meme coin that was intended to mock Dogecoin. 

There’s even a fork of Dogecoin called Floki Inu which is based on Elon Musk’s pet dog. 

As you can see, there seems to be a dog theme going around. But wait.. There are also meme coins inspired by current trends. 

For instance, SQUID was inspired by Squid Game, a popular Netflix show that lasted for a while until the hype died.

In short, meme coins are intended as a joke and they tend to gain popularity for a short period of time until they either die out or face a standstill growth until the hype kicks in again. 

7 Ways To Identify A Meme Coin

  1. Funny names

While humor differs for everyone, most meme coins have a rather funny sounding name. For instance, SpaceKim or Wakanda Inu Token. If you find a token with a weird name, make sure you look up the project because it is likely that the token is a meme coin. 

Looking to know more about these hilarious meme tokens? Here is a list of the top meme coins we find absolutely hilarious! 

  1. It’s all about the hype

Meme coins are driven by the community that backs up the token. The community is built around social media and community platforms like Discord, Reddit, Telegram and even Instagram. 

Token holders are sometimes incentivized to promote the token which is a sort of marketing ploy. Groups like Reddit and Discord also have raids that spread hype and urgency to get other users to buy in. 

  1. Traded mostly on DEXs (Decentralised Exchanges) 

Besides Dogecoin and perhaps Shiba Inu, most other lesser-known meme coins are often not listed on CEXs (Centralised Exchanges) because these exchanges have regulatory standards to abide by. 

Some exchanges however are not regulated like Gate.io so they might list some of these meme tokens. This is only if they have a certain trading volume that would be profitable for the exchange. 

On a DEX, anyone can list a token so you might have better luck finding Kitty Inu or Safemoon on a DEX (Decentralized Exchanges). 

  1. Founders Admit It’s a Meme Coin

The easiest way to find out of course is if the founders just say it’s a meme coin. 

Oftentimes, you will be able to read about the token on their designated websites. This would list the whitepaper, mission, objectives and so on. If you read it and find it to be rather funny or odd, then you could be sure it’s a meme coin! 

For instance, Floki Inu mentions that it combines “the power of memes with real utility and charitability”. 

The Million token calls itself the “Web 3.0 meme coin (“King of the Jungle of dog coins”)

Final Thoughts On Meme Coins

Meme coins are fun and if you’re lucky, you might even be able to make a fortune. But before investing in one, keep in mind the risks that you expose yourself. 

Meme coin prices highly rely on community sentiment and viral moments. For most investors, it’s best to risk a small part of your portfolio into these meme coins instead of being all in. 

In other words, proceed with caution.

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