In Crypto, in addition to seriously active projects, there are products born only for "for fun" reasons. It's called Meme Coin. So what is Meme Coin? Why was it born and how does it affect Crypto? Please read the article for details.
What is Meme Coin?
Meme Coin is a coin created not for the purpose of contributing to Crypto, but for some somewhat non-serious reason. For example, at the end of 2020 there was the Foodcoin movement. A series of tokens born from this movement such as SushiSwap, Kimchi.Finance, etc. Or when Safemoon was in vogue, there were Safemars, SafeGalaxy,... The most typical is probably a series of "dogs" born when Doge rose. in 2021 with ShibaSwap, CorgiCoin…
In fact, the line between "serious" and "not serious" above is also not clear. For example, ShibaSwap was once rated as a Meme Coin, but when it came to community support, they worked like a real project.
Also, judging a project as a Meme Coin or a regular project has nothing to do with whether they have a Scam or not. Some projects look good, but the goal is only short-term, or halfway through, they get bored and quit the project. While projects like SushiSwap have evolved since their inception. It's just that Meme Coin projects have a higher Scam tendency than others.
The Potential of Meme Coins
Investment potential
Meme Coin is one of the most loved “items” by the community, especially those with little capital. The reason is that these coins have a few dozen to a few hundred percent growth in a short time, usually a few days. So you guys with little capital can come in to increase capital quickly.
But in return, anything that goes up quickly comes with great risks. These projects can yield x2 x3 profits in a few days, will also split 2 divided by 3 in the same time. So it is very difficult to make a safe profit when playing Meme Coin. Even so, you can still "survive" if you are not greedy, and know the right timing.
Potential for Crypto
Meme Coin is Crypto's "specialty" that no other market has. Because to create a token, it only takes a few minutes. Meanwhile, it is difficult for the stock market or real estate to create assets so quickly.
In addition to creating a sense of risk in investment with the above mentioned "up and down", Meme Coin also makes people excited by its symbolism. From there, these coins can pull new money into the market, making the whole Crypto more sustainable.
A good example is that many people invest in Crypto just for Dogecoin, not BTC, or Elon Musk openly supports Dogecoin for payment, not any other asset, etc.
Learn More: How Memes Are Dominating the Crypto World
3 typical Meme Coin trends
Foodcoin
After SushiSwap was born and received the attention of the community, a series of other "delicious" names were born such as Kimchi.Finance, Icecream.Finance, Kebab Finance, Pickle Finance or even PhoSwap with the logo of … noodle soup.
Sushi Home (formerly SushiSwap)
But after that, only the "Leader" of this trend, SushiSwap, was still alive, and became a big force in DEX, before getting involved in a series of unnecessary Fuds.
Safemoon
One day, around April 2021, the community buzzed about the Safemoon project in addition to pumping more than 3,000 times. Besides, Safemoon also has the unique function that each transaction is made, will take from the owner a part of the token for the previous Holder, and the project Treasury.
Then, SafeMars, SafeGalaxy, etc. were born with the same reward mechanism for Holders. While it sounds plausible, this mechanism seems to get the project branded as a Ponzi, as the latter literally pays the first.
Contrary to Foodcoin, this time, no project can survive the trend. As of June 2021, this trend is only a memory because no one has mentioned it.