Memecoins Memecoins Everywhere, Where Does One Begin?
The world of crypto certainly has a large variety of crypto and tokens to choose from. It's important to understand the difference between these various crypto assets before investing or trading with them. Since the first cryptocurrency Bitcoin, we've seen many other cryptocurrencies and tokens emerge. From the first altcoin Ethereum, to stablecoins, to NFTs, to Soulbound Tokens, and much more.
There are a few more in the mix, one of which you must be hearing a lot about right now thanks to the Pepe (PEPE) Token, which is a memecoin. Memecoins are special, they win over the hearts of the people on the Internet. Memecoins are inspired by popular memes that amuse web users. Over the years, there have been many memecoins that have entered the crypto market. It is also important to note that memecoins and shitcoins are not the same.
While memecoins come with positive intentions, shitcoins do not. Memecoins often have a loyal and dedicated user and fanbase while shitcoins are hyped for a short time in order to scam its investors. A good example of the two would be to compare the first ever memecoin, Dogecoin (DOGE) with a shitcoin name everyone can recall, Squid Game (SQUID) coin.
The SQUID Token took advantage of the incredibly hyped Netflix series Squid Game to gain a quick following. It got fans to invest only to initiate a rug pull. Meanwhile, the first-ever memecoin DOGE went on to build a kind and generous community. This community raised funds to build water wells in Kenya, and much more. The Dogecoin Foundation went on to provide other humanitarian support. Its goal was to do only good every day.
It is no secret that the creator of DOGE made the token as a joke, yet look how far the token has come with just the support of its community. Not only did DOGE gain the support of the masses, but it also got the support of industry leaders like Vitalik Buterin and Elon Musk. While Elon Musk single-handedly drove the price of DOGE by showing his affection for the token on Twitter multiple times, Buterin helped the token stay afloat when its creator walked away from the project. In fact, a council that included Vitalik as an advisor came in to lead Dogecoin in a new direction.
After the rise of DOGE, a huge number of dog-inspired memecoins began to pop up. Most of these were different variations of Doge, all using the face of the popular Shiba Inu breed. To highlight, the most popular of these new Shiba dog-type tokens include Baby Doge, Floki, and Shina Inu. Of all of these, the Shiba Inu (SHIB) Token became Dogecoin's formidable alternative. Both these tokens were the most popular dog-inspired memetokens. While they did exist on rival blockchains, they each had their own incredibly supportive and active communities.
However, between DOGE and SHIB, the latter's community and leadership were far more active. So much so that SHIB went on to announce a whole new mainnet for its token. The Shibarium announcement came with additional plans of SHIB NFTs, blockchain games, and a suite of other exciting teasers. With all these plans behind the SHIB Token, the asset was no longer classified as a memecoin. This was huge for the memecoin community, proof that memecoins can accomplish a lot more than quick pumps and one-time profits.
Presently, the memecoin that's making headlines and hogging the spotlight is the Pepe (PEPE) Token. Fueled simply by its memetic power, the asset soared past a $1.6 billion market cap in just three weeks. Like early traders of DOGE and SHIB, the rise of PEPE allowed early investors to walk away with massive profits within these weeks. While the high value of PEPE didn't last long, it certainly sparked the return of memecoin trading with a new burning passion for traders across the world.
The crypto market has been a little slow since the crypto winter of 2022, the collapse of many traditional banks, and crypto companies such as Everledger and Bittrex filing for bankruptcy. The sudden popularity of PEPE leading to small fortunes for many traders has once again fueled the fire for spot traders. After all, with regulations still being debated in many parts of the world, this is a splendid time for traders to trade freely and make gains before new, more rigid rules could come into play.
When trading in memecoins, the only other thing to look for besides a good community is the utility of the token. What can you do with this token? Will it get you into exclusive places? Can you complete payment transactions with it? Can you tip artists with it? Does it get you exclusive access to things or give you governance power? Doing your research in crypto spaces will always give you steadier ground to stand on.
All in all, memecoins are a great way to enter the crypto trading and investing scene. As their price starts off very low, you can invest a very small amount after doing your research on the project and interacting with its community. As always, if one doesn't understand the risk of trading, one must make sure to go in with funds they are willing to lose. Either way, memecoin investments should be made with passion for the meme and tons of research, just like with any other crypto asset.
The secret behind memecoin profits is to speak with its community. If you recall the GameStop stock incident, you'll understand just how important it is to be a part of the community's inner circle. The power of the people is always greater when we stand united! Pop sees this power and wholeheartedly wants to protect and support it. We offer a platform where social identity is protected and activity is transparent. You can trust our platform to protect your online identity, intellectual property, and activity.
Mingle with a like-minded crowd on Pop. Share your true thoughts anonymously and without fear of data or content manipulation. Pop empowers creators and users so they can leverage Web3 perks together. Ours is a balanced ecosystem that gives power to the people. Download our app on the Apple Play Store and Google App Store now and you can begin connecting with a globally decentralized crowd. Share your thoughts on what memecoin you think will moon next on the Pop app or ask your fellow Poppers on our official social and community channels!