#BinanceHODLerPLUME Done ✅ Let's separate the topic of meme coins and their impact on the crypto market:
🐶 Joke Coins
These are digital currencies that initially appeared as a joke or prank (like Dogecoin in 2013).
They primarily rely on community and media hype rather than technology or actual use.
Examples: Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE).
📊 Impact of Meme Coins on the Market
1. Increased Liquidity and Trading
Meme coins attract huge numbers of new traders because they are cheap (millions of units can be bought for a small amount).
This leads to a significant increase in trading volumes, sometimes even reflecting on Bitcoin and Ethereum.
2. Creation of FOMO Waves (Fear of Missing Out)
When a meme coin rises dramatically (like SHIB's increase of over 50,000,000% in 2021), new investors enter the market driven by greed.
This boosts the overall market sentiment, but later leads to crashes when profit-taking occurs.
3. Impact on Market Confidence
Some see the spread of meme coins as evidence of speculative bubbles in crypto.
If meme coins capture liquidity, investment in strong projects (DeFi, Layer-2, Web3) may decrease.
4. Exploitation by Whales and Speculators
