A Complete Guide to Understanding Meme Coin

A Complete Guide to Understanding Meme Coin

Meme coin wave has significantly affected cryptocurrency and are an inseparable aspect of it. Possibly, one can say that Dogecoin was one of the pioneer meme coin that caused a movement that would afterward expand to a multi-billion market aided by a passionate community.

Besides Dogecoin, the likes of Shiba Inu (SHIB) have also garnered the limelight. This guide focuses on meme coins by discussing the consent and unique trait from typical cryptocurrencies, which are the biggest meme coins, and the frequently asked questions.

Understanding the Meme Coin Concept

A meme coin is a cryptocurrency originating from an internet meme or having another amusing attribute. All meme coins are cryptocurrencies, while not all cryptocurrencies are meme coins.

A meme coin has some form of meme culture inserted into its overall design. Some teams are including memes in their token’s technical design. 

Examples of popular meme coins include Shiba Inu (SHIB), Dogecoin (DOGE), and Floki Inu (FLOKI), and they are all themed around the Doge meme. Another significant group of meme coins and cryptocurrency projects, for instance, nonfungible tokens (NFTs), are positioned around Pepe the Frog, a famous internet meme. 

Most coins focus more on utility, while meme coins mainly focus on going viral via memes’ explosive nature and how rapidly they spread. As such, it can be deduced that meme coins are unpredictable and inherently risky. 

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Users should consult an expert before investing in meme coins. They should not also invest more than they can afford to lose.

Understanding Meme Coin Function 

Meme coins function like regular tokens developed on top of layer-one blockchains, with minor exceptions. Most of them are developed on Ethereum using the ERC-20 smart contract standard. 

Dogecoin, whose native blockchain somewhat imitates Bitcoin, is the most obvious exception. Despite being founded on a proof-of-network consensus algorithm, its inflationary supply is limitless compared to Bitcoin’s capped supply.

Meme coins like Shiba Inu are developing their ecosystems and side projects to offer more value and engagement with users. Generally, meme coins heavily rely on the power of the meme they are founded on to develop a robust community with a passion for it. 

Are Meme Coins Safe? 

Meme coins are centered around the virality of the meme they are founded on, making them more volatile than conventional altcoins. They must be handled like other altcoins in the market concerning technological safety.

Investors should do adequate due diligence to ensure they are not putting their money into a rug pull. The meme coin field has so many rug pulls, thus the need to be cautious.

The Top Meme Coins

New meme coins are being created every day, thus their high number. Nevertheless, few have stood the test of time or exploded into the mainstream in a manner that has secured their place as a major meme coin. 

Examples of the biggest meme coins include Shiba Inu (SHIB), Dogecoin (DOGE), Dogwifhat (WIF), and PEPE Coin (PEPE). 

Risks Linked With Meme Coins

Normally, meme coins lack utility and exist to entertain. The network impact underscores their value, meaning the louder and bigger the community, the higher the value. The situation makes them extremely volatile. 

Meme Coin Role in the Crypto Ecosystem

Meme coins have gained prominence, and most people admit they are a legitimate part of the sector that acts as a gateway for users to respective ecosystems.

Some have opposed this belief by highlighting the scam meme coins and how they are utilized to attract users similarly to a casino.

Final Thoughts

Meme coins are likely to remain. Time will tell whether they will stand its inevitable test, but they have been integrated into the crypto culture, and it is difficult to envisage a situation without them.

Meme coins have shown that creating extremely dedicated communities within short periods is possible.

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