A "meme" is defined as a "virally disseminated idea, usually humorous, that spreads quickly through an online community," according to the Oxford English Dictionary. Meme coins, like memes themselves, are digital currencies inspired by viral content and jokes. The purpose of Platincoin is to educate people about the potential of memecoins.
Memecoins: What Are They and Where Did They Come From?
Meme coins (or memecoins) are virtual currencies modeled after popular Internet memes or incorporating other comedic elements. More than 300 different coins can be seen in the Meme Coin section of CoinMarketCap. However, because of their low volume of transactions, many of these tokens are effectively worthless. Dogecoin, Shiba Inu, Dogelon Mars, and Baby Dogecoin are some of the few memecoins that see a daily trade volume of over $1 million.
The Connection Between Social Media Buzz and Memecoins
Value for most meme coins is affected by the culture of influencers. For example, Elon Musk, who can rapidly influence social media, can cause significant price movements in these coins. The cryptocurrency industry can benefit and suffer from the crowd mentality that emerges as a result of this hype, as well as from the discussions it sparks about topics other than the product itself.
According to Platincoin, the initial interest in and subsequent price of meme coins is driven by their creators' promotion of them on social media. A sustained increase in value for the coin could follow if its community growth is successful. As bull market hysteria pushed prices higher, many meme coins entered the market in an attempt to cash in on the craze.
Also, read more: Crypto Crash Makes Blockchain A Dirty Word
What's the deal with Meme Dollars?
Due to the fact that the blockchain technology supporting meme coins is essentially a carbon copy of other existent blockchain technologies, the entry requirements for these coins are extremely low. Due to the open nature of the blockchain and other cryptographic protocols, it is trivial for programmers to "fork" existing cryptocurrencies by duplicating them and releasing them online with only cosmetic changes (such as a new name or logo).
Anyone with access to the necessary technology can launch a cryptocurrency, but making a coin or token into a widely recognized meme currency is extremely difficult and has only been accomplished a handful of times. According to CoinMarketCap, the top four meme currencies by market capitalization are Dogecoin, Shiba Inu, Baby Doge Coin, and Dogelon Mars.
Dogecoin, The First Ever Meme Currency
The first and most widely known meme currency is Dogecoin (DOGE). It was created by Billy Markus and Jackson Palmer in 2013 and is named after Shiba Inu that was the inspiration for a viral internet meme. Dogecoin's creators say they created it to poke fun at Bitcoin (BTC).
Apparently, the creators of the cryptocurrency wanted to make it "as stupid as possible" by spelling "dog" as "doge," so they deliberately spelled it wrong. The current wave of memecoins, however, can be traced back to Dogecoin's meteoric rise in popularity due to its dedicated user base; this trend would later become characteristic of other meme coins.
Verdict
For Platincoin, memecoins are the ideal tool for teaching newcomers about blockchains and digital currencies. The opportunity to interact with a thriving group of honest traders and investors is one of the main draws of memecoins. When the Jamaican bobsleigh team could not afford to go to the 2014 Winter Olympics in Sochi, Russia, members of the Dogecoin community donated nearly $30,000.
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