Blockchain technology has been interesting with amazing opportunities since its launch and one of the fun aspects of the technology is Memecoin. However, memecoin seems complicated regarding what is driving its price action. Let's check out some information about this type of Cryptocurrency.
The Overview of Memecoin
Memecoin is a type of coin named after individuals, animals, artwork, and characters. In 2013, Dogecoin ($DOGE) was created by two IBM engineers with no utility other than fun. The engineers used the Doge meme and we also sighted how Shiba Inu went viral on the internet.
Additionally, in 2021 a group of investors using Reddit and some other social media platforms began to promote the world's largest game retailer (GameStop). Elon Musk joined this promotion by tweeting the word "Gamestonk", this singular act was linked to WallStreetBets which made GameStop stock receive a dramatic increase in price, volume, and volatility coupled with the interest of investors increasing.
As of the time of this article, the market capitalization of meme coins according to CMC is $37.5B, what a huge amount of money, still creation of these coins is for fun.
When Social Mining Meets MemeCoin
In recent times, we've seen how content creators positioned themselves to plugin their Twitter account to different social mining platforms to create quality content daily which allows them to earn stablecoin, different cryptocurrencies depending on the platform they connect with, an idea is powered by DAOLabs. You can read further......
Social Miners will continue to reveal the characteristics of meme coins concerning what they are missing and also send a caution notification to investors. There are advantages and disadvantages meme tokens have brought to the crypto space.
Let's Check Some of this:
- Meme Token Design
The majority of meme tokens have no real business nor utility.
Price Action
The nature of cryptocurrency is price volatility and meme coins also have this characteristic and thereby earning a profit if value rises is one of the attributes of the coin.Memecoin is known for pump-and-dump scams, hence caution when investing is usually advised.
Memecoin can be technologically complex for some users as this has no utility around it.
Research has shown that the existence of meme coins and their return patterns challenge traditional finance theories. Without any fundamental value, the majority of meme coins have a very short life, and millions of investors are attracted to such assets with billions of trading volume.
In my study, Dogechain a layer 2 blockchain launched 2 years ago introduced more utilities to supercharge the Dogecoin community. Dogecoin the first meme coin had only one utility which is payment and Dogechain allows hodlers of $DOGE to leverage DeFi, NFTs, and GameFi solutions. Read more Here
Memecoins have started receiving the backing of celebrities but the question is, is this for real or they are faking it to bag some money out of the market? We experienced a huge price increase in the $DJT token, based on the Solana due to rumors of its connection to the Trump family, now the token is down. Yes, Memecoin is far from betraying what crypto stands for, as I believe they are at the heart of innovation and disruption. The technology around these coins is a financial instrument that is shaped by culture, community, and social media. They have offered an opportunity to common people who have not traditionally had much access to markets to win extraordinary money, but this comes with huge risks as you can lose your money.
Call To Action
There is a big risk when investing in Memecoin, though they are a reflection of how innovation can change everything and an example of how curious financial experiments can echo other forms of art. Venture into opportunity with less or no risk solidifies the position of newbies coming into the crypto market and Social Mining can serve as the gateway that leads to this opportunity. It is better to start your movement gradually and steadily than rush in and rush out because when investing in Memecoiin, don't put in more than you can afford to lose. But the chance is slim, that speaks about picking the next big coin before online fans send it “to the moon,” this can make you become the next crypto millionaire. When delaying with MEMECOIN process with serious caution make sure you do your research.
Disclaimer: I am not a financial adviser, see this as an educational piece and do you research.
