- Meme coins can be depicted by a comical image or the animated meme
- There are more than 300 Meme coins listed on the Coin Market Cap
What is Meme coin –
Meme coin is a cryptocurrency trim, where there are some popular currencies such as Dogecoin, Shiba Inu, etc, sometimes they are symbolized by a popular animated meme or some comical figure. Over the years Memecoins has come to mainstream in the crypto market, where people invest, knowing it is volatile cryptocurrencies.
There are some memecoin, which are not much known but still their market cap is in nine figures like Baby Doge and Dogelon Mars. Like others, Memecoin also works on blockchain technology, which records and keeps track of all the transactions in the network.
There are more than 300 cryptocurrencies listed on Coinmarketcap under the Memecoin section but only a few have more than $1 million daily market capitalization. Holding a Memecoin doesn’t have any value, traders use them just for the purpose of trading and collecting them. Moreover, they are not a cryptocurrency, they are tokens operating on other blockchains, for example, dogecoin is ERC-20 operating on the Ethereum blockchain.
People usually trade Memecoin with the strategy of pump-and-dump, where the price of the asset is raised by circulating fake news in the market and selling the stock or security when it seems to be at its peak.
Pros of Memecoin
- It’s a fun asset to trade in cryptocurrency and learn about blockchain technology.
- Traders can earn profit too while trading in Memecoin when there is a rise in the price of Memecoin.
- Traders can show their potential participation by doing active investments and trading in the community.
Cons of Memecoin
- It is a highly risky and volatile cryptocurrencies
- Accusations of pump-and-dump scam
- It may be technologically complex for some users.
Memecoin can be purchased from various centralized cryptocurrency exchanges such as Coinbase, Gemini, FTX, Binance, and Kraken allows traders to buy and sell meme coins directly with other users through their online marketplace.
Decentralized exchanges such as Uniswap require using a cryptocurrency wallet which allows users to hold currency outside an exchange.
Anyone with technical knowledge can easily create or develop a cryptocurrency. However, it is extremely difficult to convert any coin or token into a popular Memecoin.
According to CoinMarketcap, the top four Meme coins on the basis of market capitalization are Dogecoin, Shiba Inu, Baby Dodecoin, and Dogelon Mars. Other than these, there are a few other coins that users like to trade Shiba Floki Inu, Doge Killer, Kishu Inu, and a few others.
There are many Meme coins that are created just for fun, for example, Floki Inu, is a Meme coin based on Elon Musk’s actual pet dog.
Conclusion
Currently, traditional cryptocurrency is slowly coming to the mainstream of payment- receipt ecosystem, but still, there are some negative aspects of the cryptocurrency which is refraining users to use cryptocurrency as a prominent asset to exchange for other assets. So concluding that traditional cryptocurrencies are not purely in the payment-receipt ecosystem Meme coin will be taking more time to come to the mainstream of the payment-receipt ecosystem.