Meme Coins – All you need to know about meme-inspired coins and how they work!

Inspired by internet memes, meme coins have shot to popularity in an instinct and have influenced online communities. Meme coin development is now taking the center stage with meme-based cryptocurrencies like Dogecoin have gained a massive following in just a few years’ time. At present, there are over 120 meme coins and among them, the popular ones are Shiba Inu and Dogecoin. 

How does a Meme coin work?

Meme coins are cryptocurrencies that are inspired by memes or jokes posted on the internet or social media platforms. As per companies specializing in Altcoin development in India, the first meme coin developed was Dogecoin (Doge). Introduced as a funny or joke material in 2013, Meme coin has taken the market by storm.

Here is how Meme coins work –

·   Meme coins are created as a joke which can go mainstream and have a huge spike.

·  Meme coins are bought by community members in order to be a part of the joke or meme.

·  Once a meme coin becomes popular with a spiked value, this allows retail investors to further boost the coin.

·  Meme coins have an unlimited supply and will often have billions of units in circulation in the market.

However, one thing to remember about meme coins is that they are very volatile in nature and are community-driven which helps them in gaining overnight popularity. These coins do not hold real utility value which is why investors sell them to make a profit once the price surges.

Is it worth investing in Meme coins?

Meme coins have become more popular and mainstream than other cryptocurrencies like Bitcoin and Ethereum. Shiba Inu and Dogecoin are the most invested coins for having the highest market value. There are over 200 Meme coins in circulation in the market and most of them have the word “inu” in their name. It is possible to make money from Meme coin investment but the investment might be risky and can be quite similar to gambling, rather a valid investment.

Key points to remember before investing –

· Find ways to spot fake and credible Meme coins and if the project shares something in common.

·  Look for valid Meme coins as many of the meme-inspired cryptocurrencies are scam projects that are intended to promote funny coin trends.

· Track community sentiments of the coins on social media platforms and measure market sentiments to predict price movements.

Compared to their mainstream counterparts, Meme coins are very volatile and their value can plummet in an instinct. Before investing in a Meme coin proper financial research is absolutely necessary as the coin has no background information which makes it hard to find. There is whitepaper or an established ecosystem which can be a warning, but the investment should be limited to run low on losses.

Concluding up, as per a Top crypto development company, before investing in Meme coins it is necessary to avoid emotional decisions and there should be a concrete objective behind the investment which can be fruitful in the long run.