First of all, no matter what we invest in, we should never forget that doing research and reading a lot minimizes the risks.
Memecoins are interesting digital assets that investors cannot stay out of the subject and cannot help but add to their baskets despite their fear of high risks.
Today, I will try to share my ideas about memecoins with you.
So, what is #memecoin and how did it emerge?
Memecoins, which first started to gain popularity in 2021, are digital currencies inspired by #memes on the Internet, interesting characters, trends, jokes and especially animal figures. Meme coins generally exist for entertainment purposes. They do not have financial goals, and they mostly receive strong support from enthusiastic online communities. The great enthusiasm of these communities plays a serious role in increasing the popularity of #coin. In short, the value increases of memecoins are determined by social media influence, community power and interaction.
It is an undeniable fact that #Shiba Inu and #Dogecoin are leading the meme coins. The creators of Dogecoin initially designed the coin as a joke, perhaps they themselves did not expect it to have such an impact. However, thanks to the community's adoption and great support, it gained serious and surprising popularity. #ShibaInu Coin was created under the influence of #Doge coin's success. It created a huge follower base in very short time. The huge value increase in Shiba Inu in a short time resulted in great profits for its investors. These developments show us that meme coins, even though they started out as just a joke, can create unexpected opportunities in the crypto world, as well as their great financial impact.
Let's look at the differences between Memecoins and traditional cryptocurrencies.
Traditional crypto projects, other than memecoins, try to offer much more concrete functions and areas of use. Memecoins do not have such a purpose of use or a structure aimed at offering technological innovation.
The value of traditional cryptocurrencies is mostly directly proportional to the demand and usage purposes in the market. If we need to give examples of traditional cryptocurrencies: #Bitcoin is referred to as digital gold among cryptocurrencies and is the first cryptocurrency with the highest recognition. Cryptocurrencies such as #Ethereum are important platforms that enable the development of #blockchain based projects. Cryptocurrencies like Bitcoin and Ethereum have more mature markets and more accepted usage areas. Memecoins do not have such features.
To summarize, the most important differences between meme coins and traditional cryptocurrencies are that meme coins are produced for fun and humorous purposes, gain value with community influence and power, and generally do not have a serious usage purpose. Traditional cryptocurrencies; offer more concrete financial functions, technological innovations, and much wider usage areas. While meme coins generally involve high risk and volatility, traditional cryptocurrencies offer a more stable and structured value.
The existence of #meme coins can affect the ultimate goals of blockchain technology in various ways. Among the positive effects, the strong communities formed by meme coins are a very strong factor that ensures the mass adoption of #blockchain technology. It can be said that meme coins are an advertising tool for cryptocurrency and blockchain technology.
Of course, there are also negative aspects. Extreme and sudden price changes and high risk in meme coins may cause investors to suffer great losses, and fraud and scam incidents experienced in some meme coins may damage the general trust of investors in cryptocurrency.
It is a very important fact that the cryptocurrency sector needs regulation in order to balance these effects and emphasize the real potential of blockchain technology. I think that fraud/scam incidents in meme coins or other cryptocurrencies will negatively affect our ultimate goals and prevent quality projects.
In all cryptocurrencies - including meme coins - the community effect comes first. For this reason, every cryptocurrency project, regardless of its purpose, is open to development with #SocialMining. As one of @DAOLabs' social miners, I would love to see a meme coin work on the social mining platform and hear what other social miners think about it.
If you ask if I currently have a #Memecoin in my bull basket or a favorite, I don't have one. However, I am researching a memecoin to add to my basket on the #TON, #BSC and #BASE networks.
I would like to thank all investors who found this article worth reading and hope that this article will be of some benefit to Memecoin investors.
