This article is about understanding what Meme coins are and how they are formed in different stages and hot growth periods.
What is a Memecoin?
A Meme coin is a type of cryptocurrency that is created not with the intention of contributing to the cryptocurrency market, but often emerges from a trend or the popularity of another coin. Some typical examples of Meme coins are SushiSwap, Safemoon, Dogecoin, and more recently, the phenomenon of PEPE Coin.
Meme coins have investment potential because they often experience rapid growth in a short period of time. However, they also come with high risks. Investing in Meme coins can bring significant profits, but it can also lead to quick capital loss.
Let's explore the two most prominent Meme coins during the 2020-2021 uptrend season and see how their emergence affected the price of Bitcoin.
Dogecoin was created by developers Jackson Palmer and Billy Markus in 2013. This meme coin started as a joke but later became a serious proposition, especially when Elon Musk began promoting it on his Twitter.
DOGE reached its highest market capitalization of $9 billion in January 2021. In May 2021, the price of DOGE was trading in the range of $0.5-$0.6, with a market cap fluctuating between 70 to over 80 billion dollars. DOGE has increased over 1,000 times in value.
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Following the success of Dogecoin, Shiba Inu gained significant media attention.
The Shiba Inu project, founded by an anonymous person named "Ryoshi," attracted attention with the following developments:
Reasons for the sudden price increase of SHIB:
- Dogecoin trend: The popularity of Dogecoin created a price surge for SHIB, with the hope that SHIB would dominate the market and experience strong growth.
- Influence of Elon Musk: Tesla CEO Elon Musk made positive remarks about Dogecoin, causing an increase in the value of that coin and also positively impacting SHIB.
- Popularity and easy accessibility: SHIB has a large community on Reddit and Twitter, and any positive information about this coin affects its value.
- Attractive initial value: SHIB was evaluated to have a cheap initial value, attracting many investors to hold it.
- SHIB's prominence through the game and NFT Shiboshi: Shiba Inu capitalized on the NFT trend and launched Shiboshi NFTs on ShibaSwap. The popularity of Shiboshi created attractiveness with its ability to have unique names and burn SHIB tokens. The Shiboshi Game also contributed to the popularity and price increase of SHIB.
It experienced a growth of thousands of times in 2021. Of course, this was a year of uptrend in the cryptocurrency market, with abundant money flow. The market capitalization of Shiba Inu reached over $40 billion at one point, and its price increased thousands of times.
The important thing here is that they are marketed and pushed in the final stages of the overall market growth. They often signal an extended decline in the price of BTC and the entire cryptocurrency market. From May 12th to May 19th, 2021, the price of BTC dropped more than 50% from $60,000 to $28,800.
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In 2023, PEPE Coin emerged in April, a phase that people still refer to as a mini uptrend.
Pepe Coin is a new meme coin created on the Ethereum network, inspired by the famous internet meme of the green frog called PEPE. It is a meme coin and does not have intrinsic value or expectations of financial profit.
The highlight of Pepe Coin is that it draws inspiration from popular memes and has a high degree of decentralization. The community and media influence of PEPE are also strong. Although Pepe is a meme coin, it has been listed on major centralized exchanges such as Binance, Kucoin, Bybit... shortly after its launch.
Pepe Coin has experienced rapid growth in the crypto market in terms of trading volume, significant buyers and sellers. At one point, PEPE Coin ranked 60th in market capitalization according to CoinGecko, reaching over $1.1 billion. PEPE has a development roadmap that includes stages such as listing on crypto information websites, listing on CEX exchanges, and developing features like Pepe merch, Pepe Academy, and Pepe Tools.
During the period when PEPE emerged, BTC reached its peak with a price of $29,000-$30,000. And afterward, as many have seen, BTC corrected to the $24,800 range.
Currently, no other meme coin has achieved the level of growth that PEPE has this season, and there will soon be a coin based on a golden frog, which will also rise. :v
Currently, the price of BTC is returning to its old peak, as in the previous uptrend scenario. Personally, I believe there will be a big change in July. Could it be that in July, we'll see another meme coin make a big impact like Pepe and help everyone make some money to buy instant noodles? Haha...
Summarizing the five most important points here:
Meme coins gain their reputation and crazy growth mainly due to the following factors and processes:
1. Popularity of the meme: Meme coins are usually built based on popular memes or images and slogans that have strong viral power on social media. The recognition and connection to familiar memes that have been around before can help meme coins attract attention and empathy from users. This is the initial stage of a Meme Coin project.
2. Creative marketing campaigns: Some meme coins have created creative and unique marketing campaigns to attract user attention. This can include the use of images, videos, music, or social media campaigns to generate excitement and curiosity among users. Starting with articles about it or simply mentioning its image in the news.
3. Social media virality: Meme coins are often widely spread on social media platforms such as Twitter, Reddit, or crypto forums. Sharing and discussing a meme coin can generate rapid growth and attract community attention. This stage can involve quick listing on DEX and CEX exchanges.
4. Support from influential crypto figures: When celebrities, investors, and experts in the cryptocurrency field mention a specific meme coin, it can generate significant attention and interest from the crypto community. For example, Mark Zuckerberg and Elon Musk have contributed to the reputation of some meme coins through their social media posts. This is when the price of a Meme Coin grows strongly, reaching a large market capitalization. The profit-taking time for "MM" .
5. Potential for rapid price increase: Meme coins are often invested in with the goal of rapid price appreciation and high short-term profits. This creates interest and attracts investors who want to make quick profits from trading meme coins. But remember, what goes up quickly can also come down quickly, so it's important to understand the current stage of the project before making decisions.
MEME usually becomes hottest when the market is trending sideways or in a bearish trend. When the market is uncertain about where the money will flow, MEME often becomes the choice of investors in the market.
During that time, money flows into MEME, and those MEME gain acceptance in the market, often resulting in profits that are hundreds to thousands of times the initial investment. It is often considered an opportunity for many investors during a dull market period to emerge...(James and Tommy become millionaires thanks to Shiba Inu..)
This article aims to provide information and share experiences and is not investment advice.
We look forward to receiving comments and sharing more experiences from everyone. If you have any questions, please leave a comment.
Thank you all for reading the article!
