Dog-themed meme coins (or “dogecoins”) were trending in the meme coin market in 2021 due to the exponential growth of Dogecoin (DOGE), a dog-themed meme coin. Dogecoin, which was based on an Internet meme popularized in 2013, had begun as an April Fools’ joke but grew into a cryptocurrency that was traded for goods and services worldwide.
The popularity of dogecoins was extreme that year, and Dogecoin is often considered the most popular dog-themed meme coin, with its rival being Shiba Inu (SHIB). The fact that the dogecoin community was so generous, tipping other people and spreading happiness around through gifting inspired people to get into the dogecoin market.
Dogecoins are not minable, but can be exchanged for bitcoins and then converted to US dollars. The price of dogecoins rose dramatically during late September and early October as speculators sought a safe haven for their bitcoins after China banned bitcoin exchanges.
How Meme Coins Started
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The cryptocurrency community is experiencing a meme-based viral explosion. It all started with Dogecoin (DOGE) and Shiba Inu (SHIB). DOGE coin is currently ranked 9th on CoinMarketCap by market capitalization. SHIB coin is currently ranked 100th on CoinMarketCap by market worth.
What Are Meme Coins?
The first meme coin was created in 2013, and since then, many more have followed its path. The first meme coin was created in 2013 and was inspired by a Japanese Shiba Inu dog. The meme became popular online in 2010, and a cryptocurrency to honor the famous dog soon followed.
In recent years, we’ve seen the rise of Dogecoin (DOGE), which is based on the doge meme of Shiba Inu dogs. Dogecoin’s market cap reached as much as $2 billion on December 9th 2017, when DOGE was worth USD 0.019313 per token. Nowadays, the value of DOGE has decreased to less than USD 0.0011 per token, with a total supply of over 112 billion tokens.
What Contributes to The Fame of Meme Coins?
It’s hard to say why, but some think the global crisis sparked crypto growth. Retail investors used crypto as a barrier against economic downfall and traded memes based on the hype of the moment.
In late 2020, the Reddit community created a meme stock of GameStop (GME) and AMC Entertainment (AMC). The shares were pumped and sold more than their original value. The trend caught on, and with the influence of Tesla CEO Elon Musk’s tweets and media coverage, the DOGE price rallied. According to CoinMarketCap data, on January 6th, DOGE reached $0.73, a 2,000% increase in five days.
May 2021, Elon Musk told a funny story about Dogecoin on national television, causing its price to plummet. Many investors tried Shibecoin as an alternative. Newbie dealers were jumping into the market hoping to become overnight millionaires, sparking another rally in the meme coin space.
One appeal of meme coins is their low prices. The price doesn’t mean much since these tokens have abundant reserves. Nevertheless, it’s always fun to have a lot of tokens and buy massive amount of Dogecoin, Shibechain, or Akita Inu (AKITA) using a small capital.
One of the most notable things about the cryptocurrency market is its sentiment towards mainstream cryptocurrencies like bitcoin. Meme coins are often perceived as a way to express opinions and feelings about the status quo.
Some traders are inspired by groups like Reddit’s SatoshiStreetBets to bet against mainstream cryptocurrencies, while others see meme coins as an opportunity to play a part in a revolution. Either way, what’s clear is that the increased popularity of meme coins can be traced back to those who are fed up with how mainstream currencies are run.
The Danger of Meme Coin Investing
As a new investor of meme coins, one should be aware that the market is volatile and risky. Yet they still want to invest in meme coins because of the potential returns. The main use case of meme coins is to make fun of cryptocurrencies, as exemplified by Dogecoin’s slogan “To the moon!”
There are few rules, regulations, or government supervision over trading in them. The exchanges which support these cryptocurrencies are unregulated, and may be scams themselves. These exchanges can close up shop overnight and run off with your money.
Meme coins can be an exciting investment opportunity, but the trading in meme coins is risky, like all cryptocurrencies. One concern about meme coins is tokenomics.
How To Buy Meme Coins?
If you want to buy meme-themed coins, such as DOGE and SHIB, you can do so on crypto exchange such as Binance. For less popular meme coins, you can use decentralized exchanges.
- First, log into your Binance registration. Then, navigate to the [Trade] page and select either the classic or advanced option.
- Search for “DOGE” on the right side of the screen and look for a list of trading pairs using DOGE/BUSD as an example. Click on DOGE/BUSD to navigate on the page.
- Scroll to the boc and type in the DOGE coin price you want to purchase. Choose varioust order types to purchase DOGE. Click [Buy DOGE] to verify the order, and your balance will reflect the number of DOGE you bought from the market
Several meme tokens are being created daily, and traders hope to duplicate the earnings the DOGE and SHIB makes. Before you commit to any meme coin, do your research and consider the risks involved with this highly volatile market.