You’ve probably heard of Bitcoin, Dogecoin and Shiba Inu. All three are mineable cryptocurrencies, but the latter two are different in a certain way. They are memecoins – crypto that relies on existing symbols to attract a following, and, by extension, a holder base. While they’re simple on the surface, memecoins are full of nuances and blurred lines. Are they a viable venture? And how should one choose a memecoin? Read on to learn more.
A meme is not necessarily a picture, a sound, or a video clip. These three can be comfortably described as objects. But any concept can be a meme – a belief, a feeling, even a person. The concept of crypto, in and of itself, is a meme. So is Elon Musk and his public image. Which is why it’s hard to classify BTC knockoffs and currencies like Dogelon Mars.
For the purposes of this article, we’ll keep it simple – any cryptocurrency that utilizes media symbolism is a memecoin. Now, right off the bat, these coins have a marketing advantage. A memecoin doesn’t have to rely on raw utility to get adopted and spread around. They’re more encouraging for casual users, more memorable when you see one on Times Square.
A major difference is the kind of community that can be fostered around a memecoin. There’s more space for smalltalk and in-jokes. The dialogue is never limited to technology or sheer profit, and hype builds quickly.
An Investor’s Choice
This very hype is the most dangerous element of a memecoin. It’s only useful if you can push the veil aside and evaluate crypto on its own merit. A coin that is susceptible to scams or technological failure will NOT be saved by a viral media campaign. At best, you’ll have the chance to pull out before the inevitable collapse.
Instead, view the memeness as a benefit, while analyzing the economic model and the security features. Invest in a currency that has undergone multiple audits and displayed stable growth (like Scrooge Token) or one that has an inherent use (for example, BAT or GLM). Either way, you’ll get more than a funny meme mascot dancing around your empty wallet.
Despite their risks, memecoins provide an opportunity to get in early and profit from their rapidly-spiking value, much more so than any ordinary project. A minimal amount of funding can multiply by tens, hundreds, and thousands of times. Of course, for every winner, there’s a dozen of poverty-stricken losers. Stay vigilant, and keep a firm grasp on your hard-earned money.