mgcoins

Disclaimer: This article is for educational purposes only. The information provided through Binance does not constitute advice or recommendation of investment or trading. Binance does not take responsibility for any of your investment decisions. Please seek professional advice before taking financial risks. Products mentioned in this article may not be available in your region.

Key Takeaways

Usual introduces a decentralized financial system focused on democratizing access to real-world assets. 

It aims to address common issues faced by traditional stablecoin providers, such as revenue centralization, limited accessibility, and lack of transparency.

The Usual ecosystem has two key tokens: USD0 and USUAL. The first is a stablecoin backed by real-world assets. The second is a governance token.

Usual also has a liquidity staking token (LST) called USD0++, which represents staked USD0.

What Is Usual?

The Usual Protocol is a blockchain project designed to change the way users interact with real-world assets (RWAs) in the Web3 space. 

By combining stability, transparency, and inclusivity, the project addresses long-standing challenges in the stablecoin market and creates new opportunities for decentralized finance (DeFi) users.

What Is the Usual Protocol?

In short, the Usual Protocol introduces a decentralized financial system that is focused on democratizing access to RWAs. At the heart of the protocol are two key tokens:

USD0: A stablecoin designed for permissionless minting, backed by real assets collateral.

USUAL: A governance token that rewards users and lets them have a say in the development of the protocol.

Why Was Usual Created?

Stablecoins are an important part of DeFi because they make it easier to move money around without worrying about significant price changes. They help connect traditional finance (TradFi) with DeFi, providing a stable medium for transactions. 

However, existing stablecoin providers have certain limitations:

Profit centralization: Big stablecoin providers make billions, but users don’t see any of that money.

Limited access: Access to RWAs is often restricted, leaving many users unable to benefit from yield-generating assets.

Lack of transparency: Users often have limited visibility into the management and collateralization of stablecoins. It’s hard to know what backs them and how secure they really are.

The Usual Protocol was developed to address these issues by redistributing economic benefits, improving transparency, and ensuring fair access to RWAs.

Core Components of the Usual Protocol

1. USD0: the stablecoin

USD0 is a stablecoin that serves as the gateway to the Usual ecosystem. Its unique features include:

Easy to mint: Users can create USD0 by depositing approved collateral.

Backed by real assets: USD0 is supported by fully collateralized, low-risk investments like U.S. Treasury bills.

Transparency: Collateral details are verifiable both on-chain and off-chain through public audits.

How minting and redemption work

There are two primary methods to mint and redeem USD0:

Direct: Users directly deposit eligible collateral to mint USD0.

Indirect: For users who can’t hold certain assets, the protocol’s DAO helps with minting and redistributes USD0 back to them.

Collateral management

To keep USD0 secure, the protocol only accepts collateral that meets strict standards:

It must be fully backed and free from leverage.

It should be low-risk and liquid, so it can be quickly sold if needed.

The collateral’s details must be transparent, with regular audits.

To enhance resilience, the protocol has mechanisms like an insurance fund to address potential collateral losses.

2. USD0++: liquid staking token (LST)

USD0++ is a liquid staking token representing USD0 locked until maturity (June 30, 2028). It’s designed to reward users for locking their USD0. 

Users can earn USUAL tokens proportional to their locked USD0. While USD0 tokens are locked, the USD0++ LSTs remain tradable in secondary markets.

Early redemption options

There are a few situations that allow users to unlock USD0++ before maturity:

Burning USUAL: Users can burn some USUAL tokens to exchange their USD0++ back to USD0 at a 1:1 ratio.

Floor price redemption: Redeeming USD0++ at a discounted rate set by the DAO.

Parity Arbitrage Right (PAR): the DAO may unlock USD0 before maturity during extreme market conditions to prevent the market price of USD0++ from depegging.

3. USUAL: The governance token

USUAL is the backbone of the Usual Protocol, serving as both a reward mechanism and a governance tool. Its design ensures alignment between users’ interests and the protocol’s growth.

Key features of USUAL

Revenue-based minting: USUAL tokens are minted based on the protocol’s revenue, making it more sustainable.

Staking rewards: Users can stake USUAL to earn additional USUAL tokens.

Governance participation: Holders can vote on changes to the system, like which assets to accept as collateral or how rewards are distributed.

Dynamic minting mechanism

The minting rate for USUAL adapts to market conditions using factors like:

The supply of USD0++ (ensuring scarcity as demand grows).

Interest rate fluctuations (reflecting protocol revenues).

DAO-controlled variables to manage ecosystem growth.

Governance and Decentralization

The Usual Protocol begins with centralized oversight by Usual Labs to ensure a smooth launch. Over time, governance will transition to a decentralized model through the Usual DAO, where decisions will be made collectively by USUAL Holders and early supporters.

Governable aspects include collateral management, treasury allocation, and adjustments to reward structures.

Incentives for Liquidity Providers

To ensure there’s enough liquidity in the market, Usual rewards users who provide liquidity for its tokens. For example, users who add USD0 or USUAL to specific liquidity pools can earn extra USUAL tokens as a reward.

Closing Thoughts

The Usual Protocol is a decentralized financial system focused on addressing common issues faced by traditional stablecoins. The USD0, USD0++, and USUAL tokens can offer new methods for users to access and potentially benefit from real-world assets. With innovative mechanisms and a multi-token system, Usual is helping to bridge the gap between traditional finance and decentralized finance.

Further Reading

What Is a Stablecoin?

What Is Ethena (ENA)?

Why Do Stablecoins Depeg?

Disclaimer: In compliance with MiCA requirements, unauthorized stablecoins are subject to certain restrictions for EEA users. For more information, please click here.

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer here for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Disclaimer: This article is for educational purposes only. The information provided through Binance does not constitute advice or recommendation of investment or trading. Binance does not take responsibility for any of your investment decisions. Please seek professional advice before taking financial risks. Products mentioned in this article may not be available in your region.

Key Takeaways

By linking supply and demand, bonding curves provide a mathematical framework to the crypto industry and can be used to automate pricing and liquidity.

Projects can customize token price and distribution by applying different curves, including linear, exponential, logarithmic, and step-function curves. 

While full self-sustainability is not guaranteed due to token volatility and risks, platforms like pump.fun show how bonding curves enable predictable token issuance and early market participation. 

Introduction

Supply and demand are age-old economic principles that have shaped markets for centuries. They drive everything from the price of rare jewels to the value of everyday goods like milk and eggs. But how can these fundamental concepts be applied to the crypto industry, where assets solely exist in digital form? 

The crypto landscape includes many mathematical concepts. One such concept is bonding curves, which define the relationship between the price and supply of a particular asset.

As more tokens are purchased, the price tends to increase, and as tokens are sold or removed from circulation, the price typically decreases. This is a traditional bonding curve model and a mechanism that tends to benefit early market participants and traders. 

Bonding curves form an essential mathematical framework in tokenomics. Popular platforms like pump.fun rely on the bonding curves mechanism for their success in automating pricing, liquidity, and token distribution. 

Given the significance of bonding curves, let's explore their function, the different types of curves, and their importance in the crypto industry. 

What Are Bonding Curves?

Bonding curves are mathematical models that aim to create a direct correlation between the supply of crypto assets and their price. They are governed by an algorithm, meaning that a predefined formula automatically adjusts an asset's price based on its supply. 

This is no different from how resources have been treated throughout history. When demand for a resource grows while its availability remains limited, its price tends to rise. Bonding curves try to apply the same principle in the crypto market, adjusting the price of tokens based on supply. 

The pricing mechanism of bonding curves is managed by smart contracts, ensuring that their execution on blockchain networks is automatic, transparent, and decentralized. 

How Do Bonding Curves Work?

The fundamental principle behind bonding curves is quite simple: the more tokens are bought, the more supply there is in circulation, which typically results in an increase in price. Conversely, the more tokens are sold, the less supply there is in circulation, decreasing the price. 

To illustrate this point, imagine a new project that launches tokens using a bonding curve. Due to the low initial supply, those who buy the tokens first will most likely purchase them at a low price. 

However, if the token gains popularity and more traders begin to purchase it, the supply in circulation will increase, and new tokens may be minted according to the bonding curve, causing the price to climb. 

The automated nature of the bonding curve ensures liquidity as tokens continue to be bought or sold. Projects can customize bonding curve tokenomics by using mathematical models to define their own unique curves. There is no actual limit to the types of curves that can be used, but the most common ones take the form of linear, exponential, and logarithmic curves.

Linear bonding curves

The most simple mathematical model for this mechanism is a linear bonding curve. In this model, the price of a token increases in direct proportion to the number of tokens sold, adding to the total supply of tokens in circulation. The price will increase by a predetermined, fixed amount for every new token minted or sold. 

Below is a simple representation of a linear bonding curve, which is the simplest form of a bonding curve. 

Exponential bonding curves

In an exponential bonding curve, the price of a token at any given time depends exponentially on the supply in circulation. If tokens are purchased at double the rate, the price will more than double, meaning they can become much more expensive much faster. 

Exponential curves typically reward early buyers the most, who can sell their tokens later when demand increases. Thus, projects that want to encourage early participation may employ this curve. While early buyers may take significant risks, they may also profit the most if the project is successful.

Below is a simple representation of an exponential bonding curve. As you can see, the increase in price accelerates as the number of tokens in circulation increases.

Logarithmic bonding curves

A logarithmic curve causes the price of tokens to rise quickly as more tokens are minted. However, as the supply continues to expand, the price begins to slow down. Typically, this model tends to benefit early traders the most since the initial spike eventually levels off. 

A logarithmic curve can provide liquidity to a project via these first buyers who may be looking to make a quick, early profit. Below is a simple representation of a logarithmic bonding curve. 

While linear, exponential, and logarithmic curves are common, there are also other types used in DeFi projects. These include step-function bonding curves for mile-stone-dependent price increases and S-curves for phased growth and stabilization. There are even inverse bonding curves, where the price of initial tokens might be higher, but as the supply grows, the price becomes cheaper for future buyers.

Practical Use of Bonding Curves

Having discussed the theory behind bonding curves, let's look at the practical usage of these mechanisms on the platform pump.fun. Built on the Solana blockchain, pump.fun is a decentralized token launch and exchange platform. Using smart contracts, it automates pricing, liquidity, and distribution.

Pump.fun allows users to create and distribute their own tokens, most commonly meme coins. These community-driven coins don’t have intrinsic value but can increase in price due to popularity. At the core of this platform are bonding curves, which determine how tokens are created, valued, and sold within the ecosystem.

Unlike many traditional cryptocurrencies and meme coins, which rely on speculative trading and hype, pump.fun employs a smooth bonding curve to promote price stability and transparency. This allows for clarity and predictability as the token price gradually increases or decreases using a predefined mathematical function as more tokens are bought or sold. 

Let's imagine that a new token has just been launched. The bonding curve has predetermined that the price will start at 0.1 SOL for the first token and gradually increase as more tokens are sold. 

For example, after the first 500 tokens are sold, the price could increase to 0.2 SOL, and after 1000 tokens, it might rise to 0.4 SOL. As the number of tokens sold continues to grow, the price will continue to increase smoothly, with the price increments becoming larger as the supply in circulation increases. 

On pump.fun you can get a visual representation of the bonding curve progress. This percentage bar can increase or decrease depending on the tokens being bought or sold. Also, when a token reaches a specific market cap, it is crowned ‘king of the hill,’ a competition on pump.fun that increases the winning token's visibility until it is dethroned by another token. 

Once the token reaches a specific market cap and the bonding curve progress bar nears 100%, it automatically transitions to Raydium for further trading. Essentially, pump.fun pairs a portion of the SOL raised through the bonding curve with the tokens to create a trading pool on Raydium. Below is a step-by-step process, as you’ll find on pump.fun. 

This structure incentivizes early buyers with lower prices, while later buyers pay higher prices as more tokens are purchased. It also showcases how bonding curves can effectively be applied to DeFi, demonstrating its ability to potentially create somewhat self-sustaining markets driven purely by supply and demand dynamics.

Closing Thoughts

The age-old principle of supply and demand has shaped markets, and mathematical models try to provide a similar framework for managing digital assets in the crypto industry. As we have explored, bonding curves can provide liquidity and, at times, stability by applying the long-standing concepts of resource pricing to DeFi. 

Platforms like pump.fun demonstrate the practical applications of bonding curves, emphasizing their ability to promote early participation and manage liquidity. As the principle of supply and demand has remained relevant in traditional markets for centuries, mathematical models like bonding curves may also follow a similar path of relevancy in the crypto industry. 

Further Reading

What Is Tokenomics and Why Does It Matter?

Crypto Market Capitalization Explained

What Is Cryptocurrency and How Does It Work?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer here for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Disclaimer: This article is for educational purposes only. Binance has no relationship to these projects, and there is no endorsement for these projects. The information provided through Binance does not constitute advice or recommendation of investment or trading. Binance does not take responsibility for any of your investment decisions. Please seek professional advice before taking financial risks.

Key Takeaways 

Meme coins are meme-inspired cryptocurrencies that tend to be more volatile than major cryptocurrencies, like bitcoin (BTC) and ether (ETH). 

Meme coins generally gain popularity due to their low prices, community-driven nature, active marketing through social media, and endorsements from high-profile figures.

Meme coins carry significant risks due to their often inflationary tokenomics, high volatility, and a high potential for rug pulls.

Introduction

Meme coins are a significant part of the cryptocurrency market and are known for their rapid and unpredictable price movements. They are often inspired by internet memes and jokes, gaining popularity through social media and online communities. In this article, we will explore what meme coins are, why they have gained such popularity, and the potential risks associated with them.

What Are Meme Coins?

Meme coins are cryptocurrencies inspired by memes or jokes on the Internet and social media. The first meme coin was Dogecoin (DOGE). Launched in 2013 as a parody, DOGE was inspired by the popular Doge meme of a Japanese Shiba Inu named Kabosu.

Meme coins tend to be highly volatile. They are mainly community-driven and can gain popularity overnight due to online community endorsements and FOMO. Still, their price can also crash unexpectedly when traders turn their attention to the next meme coin.

Another typical characteristic of meme coins is their huge or unlimited supply. For example, Shiba Inu (SHIB) has a total supply of 1 quadrillion tokens, while DOGE has no maximum supply. As meme tokens generally do not have a coin-burning mechanism, the huge supply explains their relatively low prices.

Why Are Meme Coins So Popular?

During the COVID-19 pandemic, the crypto market grew as retail investors looked for ways to hedge against inflation. Amidst the hype, meme coins boomed, increasing in both market capitalization and variety. The phenomenon gained momentum after the "meme stock" saga involving GameStop (GME) and AMC Entertainment (AMC), where the Reddit community significantly boosted the prices of these assets. 

Inspired by this, people started joking about pumping the price of Dogecoin (DOGE) to create a crypto equivalent of GME. This trend, coupled with endorsements from high-profile figures like Tesla CEO Elon Musk, led to a significant rally in DOGE's price. 

The excitement around meme coins was further fueled when traders started exploring other meme coins like Shiba Inu (SHIB), hoping to replicate the success of DOGE. Retail investors were drawn to meme coins because they are typically very affordable, often costing just a few cents or even fractions of a cent. This allows traders to hold thousands or even millions of tokens, which feels different from holding fractions of major cryptocurrencies like ETH or BTC. 

The meme coin frenzy is also driven by community and market sentiments. Meme coins are inspired by popular internet memes and are intended to be fun, often serving as "insider jokes" for their communities. Buying meme coins can be seen as a way to show support for these communities.

The institutionalization of meme coins significantly boosted their popularity in 2024. A key development was the launch of a meme coin index by VanEck, which tracks the six largest meme coins by market cap (DOGE, SHIB, PEPE, WIF, FLOKI, and BONK as of May 2024). 

The VanEck meme coin index increased the visibility of meme coins and is serving as a benchmark in the asset management industry, encouraging funds to try and outperform it. In addition, the inclusion of meme coin tickers on channels like Bloomberg helped spread information about meme coins and attract more trading activity.

What Do Meme Coins Mean for the Crypto Community?

Many meme coins, such as Dogecoin (DOGE), were launched with a fair distribution model, meaning they were available to the public without premining or significant early allocations to project founders. This aligns with the views of many cryptocurrency enthusiasts who value open access and community-driven growth. The decentralized nature of these launches fosters a sense of ownership and participation among the community.

However, not all projects follow the same principles. Some meme coins are premined, where a significant portion of the tokens is allocated to the creators or early investors before public distribution. This often leads to concerns about transparency and fairness, as it might allow a few individuals or groups to control a substantial portion of the coin's supply. For example, coins like Shiba Inu (SHIB) have seen mixed reactions due to the allocation strategies used by their creators.

Decentralized meme coins tend to be viewed more favorably by the community, as they embody the principles of decentralization and community involvement that are foundational to the crypto movement. Conversely, centralized meme coins often face criticism due to the potential risks of manipulation and unfair practices.

Potential Risks of Investing in Meme Coins

Tokenomics

First of all, the tokenomics of meme coins can be concerning. For instance, Bitcoin has its blockchain, a well-written whitepaper, an established ecosystem, and a predictable issuance rate. 

In contrast, most meme coins are inflationary and have no maximum supply. Their ecosystem, use cases, and fundamentals are often defined by the collective jokes of their communities.

Volatility 

Meme coins are heavily community-driven and are generally more volatile compared to bigger market capitalization cryptocurrencies. Their prices can randomly surge from celebrity shilling or FOMO, or unexpectedly crash when the community decides to move on to the next meme coin.

Rug pulls

Rug pulls are a significant risk in the meme coin market, where developers abandon the project and disappear with investors’ funds. Unfortunately, this type of scam is very common and has occurred many times throughout the years.

Examples of Meme Coin Rug Pulls

Below are some examples of meme coin rug pulls.

SQUID: a 2021 meme coin inspired by the popular Netflix show of the same name, gained sudden traction due to the popularity of the show. However, the development team rug-pulled the project, causing users to lose their funds.

BALD: In July 2023, the BALD meme coin experienced a rug pull when the developer pulled all liquidity from the coin on Coinbase’s Layer-2 Base network, causing the token's value to plummet to zero​.

MetaSwap: In early 2024, the MetaSwap token experienced a rug pull, leading to substantial losses for investors. The developers suddenly withdrew liquidity, leaving investors with worthless tokens.

URF: In March 2024, the team behind the URF meme coin vanished after a $450,000 presale, leaving investors with worthless tokens. Promoted by boxer and social media influencer Bryce Hall, the team disappeared within 24 hours of the launch.

How to Reduce Risks When Investing in Meme Coins?

Investing in meme coins can be highly speculative and risky due to their volatility and community-driven nature. However, there are strategies you can use to reduce these risks:

Do your own research (DYOR): before investing in meme coins, it’s important to research about the project. Whenever possible, check the team behind the project, their goals, whitepaper, roadmap, and overall community sentiment.

Understand the tokenomics: Pay close attention to the supply dynamics of the meme coin. Coins with unlimited or extremely high supplies can face inflationary pressures, potentially leading to devaluation. Understanding the token distribution and any mechanisms like burning or staking can also provide insights into the coin's long-term viability.

Diversify your portfolio: Avoid putting all your funds into a single meme coin. Diversification can help spread risk across various assets. Consider balancing your investment portfolio with more established cryptocurrencies, such as bitcoin (BTC), ether (ETH), SOL, and BNB.

Stay informed: Meme coins are heavily influenced by social media trends and news. Keep an eye on the latest developments and updates related to your investments. You can use tools like Google Alerts, join relevant social media groups, and follow influential figures in the cryptocurrency space.

Set stop-loss orders: Consider using stop-loss orders to automatically sell your meme coins in case the price goes below a certain level. Stop-loss orders can protect you against significant losses.

Avoid impulsive decisions: Only invest what you can afford to lose and avoid impulsive decisions led by emotions like FOMO (fear of missing out). The hype surrounding meme coins can lead to impulsive buying decisions. Take a step back and evaluate whether the investment makes sense based on your research, rather than getting caught up in the excitement.

How to avoid meme coin rug pulls?

Check the liquidity: A healthy liquidity pool is essential for the stability of any cryptocurrency. Ensure the meme coin you are interested in has locked liquidity, meaning the developers cannot easily withdraw the funds. Services like Unicrypt can be used to check liquidity lock status.

Examine the smart contract: If you have the technical know-how, review the project's smart contract. Look for red flags, such as functions that allow developers to mint unlimited tokens or transfer large amounts of funds. Alternatively, seek out third-party audits from reputable security firms like CertiK or Hacken.

Check the team: An anonymous team can be a red flag. While anonymity is common in the crypto world, it can also be used by scammers to disappear without a trace. Look for projects with transparent and credible teams who have verifiable track records in the industry.

Assess community engagement: A strong and active community can be a sign of a legitimate project. Engage with the community on platforms like Discord, Telegram, or Twitter to gauge their sentiment and activity. Be wary of projects with fake followers or an unusually high amount of shilling.

Check the project’s roadmap: Legitimate projects usually have a detailed roadmap outlining their development goals and timelines. Compare the roadmap with the project's actual progress to see if they are delivering on their promises. Projects that make unrealistic promises or frequently delay milestones may be suspect.

Look for red flags: Be cautious of projects that heavily rely on hype and celebrity endorsements without offering substantial information about their technology or use case. High-pressure tactics, such as limited-time offers or guaranteed returns, are often signs of a scam.

By following these guidelines and maintaining a healthy level of skepticism, you can better navigate the meme coin landscape and avoid potential scams like rug pulls. Always remember that investing in cryptocurrencies, especially meme coins, carries significant risk, and it’s essential to only invest money that you can afford to lose.

An Overview of the Popular Meme Coins

As of June 2024, the total market capitalization of meme coins is roughly $63 billion. The top 6 meme coins are DOGE, SHIB, PEPE, WIF, BONK, and FLOKI – according to CoinMarketCap data.

Dogecoin (DOGE)

Dogecoin (DOGE) was created in 2013 by software engineers Billy Markus and Jackson Palmer. It was inspired by the meme of a Shiba Inu dog and was intended to be a joke cryptocurrency to attract mainstream attention. As a fork of Litecoin (LTC), DOGE adopts the same Proof of Work (PoW) mechanism and has no maximum supply. 

For a more comprehensive overview of DOGE, check out What Is Dogecoin?

Shiba Inu (SHIB)

Shiba Inu (SHIB) is the rival of DOGE and is often referred to as the “Dogecoin killer”. SHIB is also named after a Japanese dog breed. It was created by an anonymous developer named Ryoshi in August 2020. The main difference between DOGE and SHIB is that the latter has a limited supply of 1 quadrillion tokens, of which 50% were burnt and donated to charity. SHIB’s ecosystem also includes a decentralized exchange, an NFT art incubator, NFTs, and an NFT game.

To learn more about SHIB and its ecosystem, check out What Is Shiba Inu (SHIB)?

Pepe (PEPE)

Pepe (PEPE) is a meme coin inspired by the popular internet meme character Pepe the Frog. Launched in April 2023, PEPE has quickly gained popularity due to its humorous and nostalgic appeal to internet culture enthusiasts. PEPE has a circulating supply of 420 trillion tokens.

Dogwifhat (WIF)

Dogwifhat (WIF) is a meme coin that has garnered significant attention since its launch in late 2023. Unlike some meme coins that pivot towards utility, Dogwifhat remains purely a meme-centric token.

FLOKI (FLOKI)

FLOKI (FLOKI) is a meme coin inspired by Elon Musk’s Shiba Inu dog. Launched with the vision of merging memes with real-world utility, FLOKI has developed into a project with an ecosystem that includes NFT marketplaces, NFT collections, and staking.

Bonk (BONK)

Bonk (BONK) is a dog-themed meme coin on the Solana blockchain. Launched in 2022, BONK gained attention after 50% of its total supply was airdropped to the Solana community.

Milady Meme Coin (LADYS)

Milady Meme Coin (LADYS) was launched in May 2023. Inspired by the Milady NFT collection, LADYS aims to combine meme coins with the growing popularity of NFTs. The total supply of LADYS is 888 trillion tokens.

How to Buy Meme Coins

You can buy the more popular meme coins, such as DOGE, SHIB, PEPE, and WIF, on cryptocurrency exchanges like Binance. For less prominent meme coins, you can go to decentralized exchanges. Let’s take DOGE as an example.

1. Log in to your Binance account. Then, head to [Trade] at the top bar to select the Spot market page.

2. On the right side of the screen, type “DOGE” on the search bar to see a list of the available trading pairs. We will use DOGE/FDUSD as an example. Click “DOGE/FDUSD” to open its trading page.

3. Scroll down to the [Spot] box and select the preferred order type. We will use a market order in this example. Enter the amount of DOGE you want to buy and click [Buy DOGE] to confirm the order. When the order is filled, you will see the DOGE you purchased in your Binance Spot Wallet.

Closing Thoughts

With new meme coins entering the market every day and traders hoping to replicate the profits posted by DOGE and SHIB, it’s important to DYOR before committing to any meme coins. Keep in mind that meme coins are highly volatile compared to other digital currencies. Trading or investing in cryptocurrencies involves high risk. Meme coins are largely community-driven and might crash unexpectedly, so you should never invest what you cannot afford to lose.

Further Reading

What Is Dogecoin?

What Is Shiba Inu (SHIB)?

What Is a Coin Burn?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer here for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.