What are Meme Coins and Tokens?

Influencers have always been prominent in the cryptocurrency culture, but never as much as recently. When Elon Musk threw his weight behind the original meme cryptocurrency Dogecoin, it sparked a wave of copycats promoted by influencers on social media platforms like TikTok. Some call investing in meme tokens insane, while others see it as a cheap gamble with a 1000% profit potential. Who is right, interest in meme coins or tokens has skyrocketed in recent months. Here is the low point. What are meme coins and tokens? Usually, a meme coin has no inherent value and often no utility. As the name suggests, these cryptocurrencies are often, but not exclusively, themed around internet memes: jokes and images shared on social media. The original meme coin Dogecoin (DOGE) is based on the long-standing Doge meme that originated from the image of a Shibu Inu dog. It runs on its own blockchain and is therefore different from meme tokens that run on top of an existing blockchain. Two of the most popular meme tokens are Doge emulator Shibu Inu (SHIB), an ERC-20 token built on Ethereum, and SafeMoon (SAFEMOON) running on Binance Smart Chain. But there are dozens more. There are more than 80 meme coins and tokens listed on the price aggregator CoinMarketCap. Many are Dogecoin copycats and others – positively or negatively – refer to Elon Musk. How did meme coins become so popular? Since Dogecoin was launched in 2013, it has become much easier to create a cryptocurrency and meme tokens can be launched right after events or become popular due to their association with influencers. Doge has dogs and memes while others don't – Elon Musk (@elonmusk) May 25, 2021 For example, in May 2021, Facebook CEO Mark Zuckerberg posted a photo of his pet goats with the caption "My Goats: Max Soon after, a meme token called Aqua Goat saw its value increase by nearly 300% within hours of the social media post.

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