Meme tokens or meme coins have become the common name for cryptocurrencies inspired by popular Internet pictures or created as a reaction to a current event, trend, or social experiment. These coins are highly volatile and high risk. They rarely offer innovative technologies or new blockchain solutions.

Among the famous meme coins of recent times are the following: DOGE, SHIB, PEPE, FLOKI, BONK.

The first meme token is considered to be Dogecoin, created in 2013. The coin originated from online pictures of a Shiba Inu dog.

The second was SHIB in 2020. Actually, it became a younger version of DOGE, having almost similar symbols with minor visual differences. Later, similar alternatives began to appear, but they have so far attracted much less public interest.

What is the secret to the success of meme coins?

The boom of recent months has been meme-token applications integrated into the Telegram messenger (Notcoin, Hamster Kombat). Users are encouraged to spend time interacting with the game by completing tasks like inviting friends, watching videos to earn profit. The applications are focused on mass adaptation of new users to the crypto market.

Thanks to viral marketing, meme coins spread like real jokes and quickly gain popularity through platforms such as TikTok, Reddit, Twitter and others. Celebrities and influencers play a significant role in distribution, having a dedicated audience that keeps their eyes peeled and is easily swayed by calls to action. Some users strive to see insights or information hidden from the ignorant in the publications of stars.

How meme coins attracted the attention of investors

  1. Viral marketing companies are strategies that use large social networks (Twitter, TikTok, Reddit and others) to promote a product or service.

  2. Discussion and hype on social networks play a key role in creating and disseminating information about meme coins. Users actively share memes, news and trends, spreading noise around a specific meme token, expressing opinions, making guesses about the potential value of the asset, which in turn arouses interest from others, creating the FOMO (fear of missing out) effect.

  3. Building a Community and Fan Base – Successful meme coins often spawn active communities on social media where members share information, enter competitions, and discuss news. These communities become powerful tools for attracting new investors.

  4. Celebrity/influencer support – celebrities and bloggers with large audiences significantly influence the popularity of any token. Strong support can lead to an increase in the value of coins and interest from newcomers.

Meme coins are easily accessible to ordinary users due to their low starting cost. The most popular ones are traded on centralized exchanges (CEX), which also makes purchasing easier. However, it is worth understanding: these meme tokens already have a wide audience and popularity, which is why the average user is more likely to not be able to receive the promised excess profit.

What are the advantages and disadvantages of meme coins?

Low value = high volatility.

Meme coins typically have a low value, making the coins accessible to a wide range of investors. However, not everyone is able to recognize at what point price fluctuations increase the risk of loss.

High (potential) profit = prone to speculation and possibility of fraud

Meme coins can generate high profits if luck and successful growth occur, which attracts many speculators who buy tokens solely for the purpose of resale, contributing to the creation of bubbles and price collapses. In the meme coin market, fraud and manipulation are very common, pump-and-dump schemes, when developers deceive investors by increasing the price, and then suddenly dump coins in order to quickly make a profit.

Easy availability on centralized exchanges (CEX) = lack of required liquidity

The most popular meme coins are easily available for buying and selling on many centralized cryptocurrency exchanges. However, they often have no real value or utility (they do not serve, for example, as a utility token for some community), but are simply an object of speculation and a little entertainment. The vast majority of meme coins have low liquidity, making it difficult to buy and sell tokens without significant losses in price.

No one knows the future, but it can be assumed that meme coins will not last long on the cryptocurrency market. It is worth noting: massively popular tokens are an excellent tool for attracting the attention of a new audience to the crypto market.