Top 5 Meme Coins You Should Know About
One of the trickiest parts of crypto investment is to pin down the actual value of a digital asset. With meme coins starting to gain popularity in the crypto space, and more meme coins surfacing in the crypto market, many investors struggle to determine which ones may be good investments.
The worth of meme coins remains questionable among investors, as these commodities don’t have any real value and are highly speculative. The unlimited supply of meme coins also doesn’t accord with Bitcoin’s proof-of-work consensus.
With these caveats, what are the top meme coins in which you can invest? In this article, we’ll look into the top five meme coins that have changed cryptocurrency trading. Ultimately, you’ll have insight into the effectiveness of meme coins and be able to assess the market data to decide if they’re truly worth your time.
What Are Meme Coins?
A meme coin is a type of cryptocurrency with no inherent value and rarely provides any real worth or utility. In most cases, these shitcoins are themed around internet memes — images from social media platforms that can be humorous in nature.
Meme coins are different from cryptocurrency primarily due to their lack of utility. Bitcoin and Ether, for example, were created to solve problems of centralization in the economy. Bitcoin (BTC) was created to help people send remittances and as a form of currency to be accepted by merchants. Ether (ETH) is used to pay for transaction fees and computational services.
Meme coins are usually hyped up in a short period of time due to the latest news and influencers’ promotions. For example, Dogecoin (DOGE) was one of the crypto buzzwords during the Bitcoin bull run in 2017 but soon lost its following after the BTC crash. However, it rose to fame after Elon Musk started tweeting about it. Since anyone can create cryptocurrencies, more meme coins than ever have begun to surface, resulting in the birth of coins like Shiba Inu (SHIB), which runs on the Ethereum network, and MonaCoin (MONA), which is slowly becoming one of the top cryptocurrencies.
As of July 2021, the number of different meme coins has risen to more than 5,000, according to CoinMarketCap. When compared to other cryptocurrencies, meme coins have multiplied from just a handful of digital currencies in 2013, almost on par with the number of tokens in the crypto space.
What Contributes to Meme Coins’ Notoriety?
Meme coins gained popularity through the support of crypto influencers, celebrities, and investors intending to drive the price higher in a short time. In general, meme tokens and meme coins are often seen as a joke circulating on social media platforms.
One of the examples of this phenomenon occurred when Facebook CEO Mark Zuckerberg posted a photo with the caption, “My Goats: Max and Bitcoin.” As soon as the post came online, a meme token, AquaGoat, surged nearly 300% within hours.
In a similar scenario, Elon Musk tweeted that it would become known as “Elongate” if there were a scandal involving him. Sometime later, the ELONGATE token was launched — and developers claim that they’ve donated $3 million from their profits. Additionally, Musk’s promotion of Dogecoin has provided a smooth ride for DOGE, surging to its earlier peak of $0.73. Just recently, after the Tesla CEO tweeted, “Dogecoin is the money,” DOGE’s price recovered from its consolidation price to $0.20 shortly after.
When investing in meme coins, the primary aim is to sell short when the price surges since they have little inherent value and are lacking in fundamentals. While meme coins are still notorious for pump-and-dump schemes, there are a few meme coins that are worth your time.
Meme coins are indeed volatile and highly speculative, and yet there are still investors who refuse to sell. So, which meme coins are genuinely worth your attention?
Top Meme Coins by Market Capitalization
DOGE is the original meme coin, created as a joke in 2013 based on the “Doge” internet meme featuring a Shiba Inu dog logo. Two software engineers, Billy Markus and Jackson Palmer created this open-source cryptocurrency from a Litecoin fork. Later on, it caught investors’ attention after Tesla’s CEO, Elon Musk, posted several tweets on social media praising it.
Dogecoin uses Scrypt technology, which features a block time of one minute, with an unlimited supply. Therefore, you can mine it anytime by joining a mining pool. The first use of Dogecoin was as a reward on Reddit and Twitter for creating and sharing quality content.
Initially, there were 100 billion DOGE from mining in 2015, which allowed miners to create 100 new Dogecoins in a minute. Overall, miners can mint almost 5 billion coins each year.
Why Has the Dogecoin Price Moved Up?
As of July 28, over 130 billion DOGE are circulating, with a market cap of approximately $25 billion. The primary buying pressure in this coin formed as soon as Musk began supporting it through memes — and acceptance in the SpaceX project. DOGE is currently trading at $0.20.
What Is the Future of Dogecoin?
It’s challenging to anticipate Dogecoin’s price movement, as many coins are minted each day. Moreover, there are no significant crypto projects that have used it. Therefore, the price has already entered a bubble zone, and further price appreciation depends on how investors accept this coin.
Shiba Inu (SHIB)
There was a time when a dog — Shiba Inu — inspired millions of investors to invest in the SHIB project. According to the Shiba Inu website, it’s a Dogecoin killer listed on a decentralized exchange, Shibaswap. Shiba Inu’s native coin is SHIB, which is an ERC-20 token used within the crypto ecosystem.
One of the pseudonymous founders, “Ryoshi,” created Shiba Inu in August 2020 as a meme coin. Later on, it garnered attention with several news headlines and tweets from influencers like Vitalik Buterin and Elon Musk. It was dubbed a “DOGE killer,” gaining popularity among Chinese investors.
A Scrypt-based mining algorithm runs Shiba Inu. SHIB is one of several dog-themed crypto platforms, including Dogecoin (DOGE), Alaska Inu (LAS), and Alaskan Malamute (LASM). Investors who missed the Dogecoin train shifted their attention to SHIB due to its low value.
The Shiba Inu token has a limited supply of 1 quadrillion, but 50% of its supply is locked in Uniswap liquidity. Moreover, the developer gifted another 50% of the supply to Ethereum creator Vitalik Buterin.
What Is the Future of Shiba Inu?
As with Dogecoin, the SHIB token supply is unstable. However, the tokens gifted to Buterin came with a promise to remove them from circulation. Therefore, future price appreciation largely depends on how Ethereum’s founder uses them.
The founders of SafeMoon created a decentralized finance token with three functions: reflection, burn, and LP (liquidity provider) acquisition. This protocol combines tokenomics and auto liquidity, focusing on developing non-fungible tokens (NFTs). Moreover, investors use it as a charity project on education and crypto platforms. The earning power of SafeMoon holders depends on how many tokens they own.
SafeMoon protocol will expand its presence on the NFT marketplace, allowing users to create their cryptocurrencies. This meme coin has a more ambitious road map than Dogecoin or Shiba Inu, as many leading exchanges list it.
SafeMoon aims to use the idea of static returns to remove the pressure on tokens after selling. Their white paper mentions the “reflect mechanism,” an incentive for SafeMoon holders who HODL this asset. Moreover, its automatic LP (liquidity provider) will increase stability by providing a floor price for token holders. Lastly, the burn strategy may help investors to gain in the long term.
Is Safemoon a Scam, or Perhaps a Ponzi Scheme?
Currently, around 600 trillion SAFEMOON tokens are in circulation, and traders have to pay a 10% fee every time they sell the asset. Benzinga and Lark Davis point to this coin as a Ponzi scheme, while WarOnRugs’ tweets label it a scam.
Whatever the case, this meme coin has already attracted two million users in just two months — with an attractive return. Still, many investors believe it’s only a matter of time before its price plummets.
Of course, there are no restrictions on diversifying your investment portfolio. However, always research before you invest. Investing in meme coins is risky itself, but it’s worse when SafeMoon’s white paper doesn’t even cover any real-world uses. In addition, cashing out SafeMoon isn’t the easiest thing to do since it’s only listed on certain decentralized exchanges. If you’re ready to bear the opportunity, the cost, and the uncertainties, then SafeMoon away. If not, the alleged returns may be too good to be true.
MonaCoin (MONA) is an open-source payment network that facilitates peer-to-peer transactions. Monacoin uses the Lyra2RE (v2) proof-of-work algorithm for block approval. Miners earn 25 MONA coins for every 90 blocks processed. Block creation time takes one-and-a-half minutes, while mining difficulty varies depending on each block. MonaCoin first entered the limelight after being featured on the WBS network TV Tokyo, featuring land purchased using MonaCoin.
It was conceived in 2013, based on a cat-like internet meme. An anonymous developer, Mr. Watanabe, created this asset (Watanabe remains unidentifiable to date). Today, MonaCoin is gaining extensive popularity in Japan and is widely accepted by merchants there.
Japan’s Financial Services Agency has approved MonaCoin. MONA can be mined using specialized mining software. At the same time, this meme coin can also be purchased via major crypto exchanges. There is a maximum supply of 105 million MONA worldwide, with both physical and digital existence. And MonaCoin is trading at $1.36 as of July 28. While MONA may not receive as much attention as DOGE or SHIB, the significance of MONA comes from its regulatory benefits and real-world use — despite being a meme coin.
Hoge Finance (HOGE)
Hoge Finance is a community-based DeFi token, auto-staking on the ERC-20 token with a deflationary supply. HOGE was launched on Feb 7, 2021, with no allocation from the 1 trillion token supply, of which 50% was burned during the launch. Moreover, there is a 2% tax on every HOGE transaction. Of this amount, 1% is sent to the burned wallet, and the other 1% is distributed to all wallet holders.
The HOGE launch was intended to be a deflationary “DOGE, but DeFi.” However, its founders created it with the vision of making it more philanthropic. It’s the first meme coin that has completed the CertiK audit.
What Is the Future of HOGE?
HOGE has started a not-for-profit partnership with a Twitter campaign to nominate charitable causes with the hashtag #HogeSavesTheAnimals. This initiative has raised more than $20,000 for animal rescue and shelters worldwide. Now, the HOGE team is working on developing dApp games, which may start later in 2021.
Bonus: TacoCat (TCT)
TacoCat is a community token with real-world value. It aims to connect and promote merchandising creatives with this potential crypto asset. TacoCat has a self-contained ecosystem designed to expose and grow the community of crypto assets so that the mainstream audience can experience the cryptocurrency market.
TacoCat price data and market cap haven’t been available on the CoinMarketCap website till recently. TacoCat’s cryptocurrency reached $25 million in market cap at its peak, with nearly 12,000 token holders. It uses the BEP-20 token, similar to the SafeMoon project. Moreover, it launched on the BSC and announced itself as a game-changer in the crypto world.
TacoCat has kept its lifestyle and brand value noteworthy by implementing an exclusive TacoCat merchandise store for apparel and lifestyle accessories.
Should You Invest in TacoCat?
Like Dogecoin, TacoCat has adopted a friendly environment, utilizing the Binance Smart Chain community. Moreover, TacoCat storefronts can share their growth and leverage brands, driving additional merchandising products.
The Dangers of Meme Tokens
Meme coins are created just for laughs, despite having little to no practical financial use in the real world. Therefore, plenty of risks are associated with this field of cryptocurrency, particularly for investors. Meme coins are highly speculative, without any intrinsic value.
Besides, they’re highly volatile, as pump-and-dump schemes are a common occurrence among meme coins. Therefore, investing in meme coins might be more exhausting than investing in traditional financial markets, as no regulation is implemented. However, investors can take advantage of the wild price movement to have fun and ride the wave following the social media buzz.
If you intend to invest in meme coins, you’ll need to monitor their price movement closely by taking advantage of the surge in demand. As always, don’t invest more than you can afford to lose. Investors should understand how market corrections work instead of jumping on the bandwagon when cryptocurrencies are at their all-time highs. Trend reversals happen all the time, and they can occur in a split second. While most of the established financial markets have recovered post-pandemic, meme coins beg to differ. If your risk tolerance is low, an investment in meme coins might be the last thing you need in your portfolio.
The Bottom Line
Meme coins are very new in the crypto market compared to established cryptocurrencies. Dogecoin and its peers have strong growth potential. Savvier investors can take advantage of these crypto coins, riding the price momentum from bottom to top.
Despite their potential, meme coins are still shaky due to their focus on meta-humor and community attention rather than financial performance. Therefore, if you’ve missed the Dogecoin rocket, there are still many meme coins out there if you choose to invest.
Diversifying your portfolio is a way to reduce the market risk in a sector. As with other investments, if you invest in meme coins, make sure to budget your money well — and after investing, manage your money to reduce your risk as much as possible.