Should you invest in any of the new Meme Coins?

When you search up the term “meme” in the dictionary, you will find that it refers to a hilarious picture, video, or textual content that is duplicated, typically with tiny alterations, and rapidly distributed by people who use the internet.

Meme tokens really aren’t too far from the description of a meme that can be found in the dictionaries; in fact, they are nothing but cryptocurrencies that have been inspired by memes and online jokes.

Would you put your money into meme coins? / Even while certain meme coins are rated among the most valuable cryptocurrencies according to market capitalization, prospective purchasers need to be aware that the vast majority of meme coins provide very little worth, and some of them are flat-out frauds.

Where to Find the Next Meme Coin

If you are looking to get into investing into meme cryptocurrencies, then make sure to keep an eye out on the market. But if you find it hard to do so, we have found the best place that finds the next meme coin in the market. So if this is something that interests you, make sure to go and check it out!

How Does the Meme Coin System Operate?

Meme coins have extremely minimal entrance requirements compared to other digital currencies.

Because the blockchain technology that underpins these cryptocurrencies is open-source, it enables new cryptocurrencies to be created by simply “forking” existing virtual currencies, which involves essentially by copying & pasting the underpinning blockchain, and launching them online with only minor modifications, such as changing the name or the emblem.

“A meme coin is merely a cryptocurrency so that they can be made quickly with a few lines of code,” says Tauhid Zauman. “Meme coins are becoming increasingly popular as a result of their ability to provide a platform for viral content.” “The currency is capable of either creating its very own blockchain or living on an already existing blockchain.”

According to Zauman, the developers of meme currencies typically advertise their creations on social media sites in order to generate early enthusiasm and push up the price of the meme currency. After then, there is a chance that the price will continue to rise if the currency is successful in developing a sizable community support base.

A great number of meme currencies were issued in an effort to make money off of the frenzy that was caused by the bull market euphoria, which drove prices up throughout the market.

Should You Put Your Money Into Meme Coins?

There are also a great number of other meme currencies, like Dogecoin, which have put individual investors in a very precarious financial position.

Dogecoin has lost 91% of its value since it reached an all-time peak, and Shiba Inu has lost 84%. These companies still have market valuations of around $6.5 billion & $8.7 billion, correspondingly.

Meme currencies often have a huge quantity, or even a limitless supply, in contrast to Bitcoin, which has a limit of 21 million coins.

There are currently about 135.5 billion circulating coins for Dogecoin (DOGE), and a good miner earns around 10,000 Dogecoin (DOGE) per minute. One Dogecoin now has a value of approximately $660. When contrasted to Bitcoin, where around 6.25 BTC, which is equivalent to approximately $143,000, is mined every 10 minutes, this is a remarkable disparity in terms of the amount of coins issued.

Because meme currencies often do not contain processes like “burns” that remove coins from circulation, the total number of coins that are now in circulation is continuously increasing. For example, as of the time that this article was written, the Shiba Inu monetary system has about 590 trillion coins in circulation.

Are Meme Coins Safe?

Memes have a reputation for being humorous and lighthearted, but some of the cryptocurrency-related memes have a more sinister undertone.

In addition to being incredibly unpredictable, with several meme coins plummeting 99% or even to $0 in the present bearish trend, there are also many charges of foul play and malicious intents against founders, who are typically anonymous. This is because of the nature of the cryptocurrency industry.

In numerous of the cases that Zeppettini discusses, creators have indeed been known to “launch new currencies, control one hundred percent of the quantity right out of the gate, and afterwards focus completely on building buzz so that they may dump their inventory.”

“Purchasers of these tokens can indeed be unwary retail participants,” he writes. “They may not fully appreciate the underlying dynamics of the token in question. Instead, they may only see sponsored celebrity endorsements on social networks or bot-driven behaviour that makes it look like the asset is ‘growing.'”

That is not the only thing to be concerned about. The ownership of substantial concentration of meme coins is typically concentrated in the hands of a very limited set of individuals. IntotheBlock’s analysis suggests that seven cryptocurrency wallets are responsible for controlling 48 percent of DOGE. This statistic is even more pronounced for SHIB, where possession is distributed among only 15 wallets, accounting for 69% of the total.

Given such a heavy proportion, a significant investor might either use their position to influence the market or cause the price of the currency tumbling down when they cashed out their holdings, both of which would be caused by the high concentration level.

Although it is theoretically feasible to make money off of meme coins, doing so is by no means guaranteed. These cryptocurrencies are susceptible to more volatile variables than popular bitcoin and Other cryptocurrencies, and as a result, the price of a meme coin might drop dramatically in a single day.

Why are private investors putting their money into them?

Meme coins, as you may undoubtedly deduce by this point, are not founded on any solid principles. The inventor of Dogecoin admits that he has a hard time putting his brain around how much money the cryptocurrency sector is currently worth. Therefore, why are people putting their money into meme coins? Speculation…with not much else to offer. Because there are no real firms operating in this area, the circumstance is much more precarious than with meme stocks.

A few astute traders are betting that they can profit from the erratic price changes of meme currencies. On the opposite end of the scale, some individuals can simply join in on the trend for the sake of participating. When you combine this with the fact that trading cryptocurrencies takes place around the clock, you have assets that are ideal for engaging in the practice of pumping and dumping. But to what extent do you think these price fluctuations are irrational?