Venus1100
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Meme cryptocurrencies are referred to as "meme coins" or "meme tokens" collectively. Memes are derived from the Ancient Greek word "mmmma," which means "imitated thing." The meme, as the basic unit of community culture, serves as an intermediary between individuals and is an important component of community behavior, particularly in today's society. It is the collective sentiment of buyers that drives the market narrative of such meme coins. But what makes these meme coins so appealing?
Meme coins are inextricably linked to hype.
There are numerous reasons why meme coins are popular, but two stand out:
One factor is the emotional agitation of community culture, as well as the serendipitous influence of narrative topics, which greatly accelerates the growth of meme coins. Institutional investors shorted two legendary meme stocks, Gamestop (GME) and AMC Entertainment (AMC), at the end of 2020. A month later, retail investors on the popular social networking site Reddit joked about creating a cryptocurrency equal to the market value of GME's stock at the time (making Dogecoin more than 100 times more expensive). This joke came true unexpectedly.
Tesla CEO Elon Musk later tweeted on social media, causing Dogecoin's price to skyrocket. Dogecoin's price increased by more than 2000% in five days, reaching a new high of $0.73 per piece.
Another factor that contributes to meme coin popularity is their low cost. Because most of these meme coins are only a few cents or less, MEXC Exchange traders can hold millions of meme coins for a few dollars. This has a strong psychological effect, leading traders to believe that such meme coins are undervalued and inexpensive, which is very different from holding a blue-chip coin such as ETH or BTC.
The Evolution of Meme Coins
Due to social media hype, two dog-related meme cryptocurrencies, Dogecoin (DOGE) and Shiba Inu (SHIB), went parabolic in 2021.
The first meme coin was created, Dogecoin (DOGE). It was created as a joke in 2013 by software engineers Billy Markus and Jackson Palmer to mock the wild speculation in cryptocurrencies at the time. DOGE was inspired by the Doge meme, which was a viral image of a Japanese Shiba Inu. Today, the market value has surpassed 19 billion US dollars and has piqued the interest of investors, making it one of the most popular cryptocurrency projects with widespread acceptance after Bitcoin and Ethereum.
Shiba Inu Coin (SHIB) is a digital currency based on the Japanese Shiba Inu meme. Shiba coin was created on the Ethereum blockchain in August 2020 by an unknown developer known only as "Ryoshi." SHIB has a total supply of 1,000 trillion. Following the successful launch, Ryoshi locked in 50% of the total supply in Uniswap, laying the groundwork for Shiba Inu liquidity. Ryoshi transferred another 500 trillion Shiba Inu coins to Vitalik Buterin, co-creator of Ethereum, who burned 90% of them and donated the remaining 10% to the Indian Covid-19 Relief Fund.
Meme coins are inextricably linked to hype.
There are numerous reasons why meme coins are popular, but two stand out:
One factor is the emotional agitation of community culture, as well as the serendipitous influence of narrative topics, which greatly accelerates the growth of meme coins. Institutional investors shorted two legendary meme stocks, Gamestop (GME) and AMC Entertainment (AMC), at the end of 2020. A month later, retail investors on the popular social networking site Reddit joked about creating a cryptocurrency equal to the market value of GME's stock at the time (making Dogecoin more than 100 times more expensive). This joke came true unexpectedly.
Tesla CEO Elon Musk later tweeted on social media, causing Dogecoin's price to skyrocket. Dogecoin's price increased by more than 2000% in five days, reaching a new high of $0.73 per piece.
Another factor that contributes to meme coin popularity is their low cost. Because most of these meme coins are only a few cents or less, MEXC Exchange traders can hold millions of meme coins for a few dollars. This has a strong psychological effect, leading traders to believe that such meme coins are undervalued and inexpensive, which is very different from holding a blue-chip coin such as ETH or BTC.
The Evolution of Meme Coins
Due to social media hype, two dog-related meme cryptocurrencies, Dogecoin (DOGE) and Shiba Inu (SHIB), went parabolic in 2021.
The first meme coin was created, Dogecoin (DOGE). It was created as a joke in 2013 by software engineers Billy Markus and Jackson Palmer to mock the wild speculation in cryptocurrencies at the time. DOGE was inspired by the Doge meme, which was a viral image of a Japanese Shiba Inu. Today, the market value has surpassed 19 billion US dollars and has piqued the interest of investors, making it one of the most popular cryptocurrency projects with widespread acceptance after Bitcoin and Ethereum.
Shiba Inu Coin (SHIB) is a digital currency based on the Japanese Shiba Inu meme. Shiba coin was created on the Ethereum blockchain in August 2020 by an unknown developer known only as "Ryoshi." SHIB has a total supply of 1,000 trillion. Following the successful launch, Ryoshi locked in 50% of the total supply in Uniswap, laying the groundwork for Shiba Inu liquidity. Ryoshi transferred another 500 trillion Shiba Inu coins to Vitalik Buterin, co-creator of Ethereum, who burned 90% of them and donated the remaining 10% to the Indian Covid-19 Relief Fund.
