Since the beginning of 2023, the volume of NFT sales has been steadily declining, which has drawn attention to meme coins such as PEPE, DOGE, and TURBO in the cryptocurrency sphere. Unlike traditional cryptocurrencies like Bitcoin and Ethereum, meme coins are primarily used as trading instruments and do not possess specific utility associated with blockchain functionalities such as DApps and DAO usage.
Meme coins provide traders with the opportunity to earn significant amounts of money in a short period of time. However, it is worth noting that they are also characterized by high volatility and instability. Therefore, caution should be exercised when approaching meme coins.
Here's what you need to know about Memcoins: their popularity, risks, and ways to purchase them independently.
Contents:
- MemeCoin: What to Know About the New Phenomenon in the World of Cryptocurrencies?
- Examples of MemeCoins
- Sources of MemeCoin Popularity: What Makes Them Successful?
- Buying MemeCoins: Important Information and Tips
- Potential Threats and Possible Dangers
MemeCoin: What to Know About the New Phenomenon in the World of Cryptocurrencies?
"Memecoin," also known as "shitcoin," is a cryptocurrency that emerged and gained popularity due to internet memes and cultural trends. One of the appealing aspects of memecoins is their fun and carefree nature, as well as the potential for significant profits.
Meme coins are often created as a joke or as a way to satirize the serious nature of traditional cryptocurrencies. However, despite this, if they gather a sufficient number of followers, meme coins can still have significant value. This has led to a notable increase in meme coin trading and investments, and some investors have indeed made substantial profits.
Examples of MemeCoins
One of the most popular cryptocurrencies are Dogecoin and Pepe Coin. Dogecoin was created in 2013 by Billy Markus and Jackson Palmer as a joke project, but over time, it has become a significant player in the cryptocurrency market. In May 2021, its price reached a record level of around $0.74, and its market capitalization temporarily exceeded $80 billion.
Pepe Coin recently garnered media attention after reaching a market capitalization of $1 billion just three weeks after its launch and entering the top 100 cryptocurrencies. This token was created by an anonymous user and quickly gained popularity due to messages posted on its official Twitter account. Thus, Pepe Coin was inspired by the well-known internet character, Pepe the Frog.
Two other popular meme coins are known as Shiba Inu (SHIB) and Akita Inu (AKITA).
Sources of MemeCoin Popularity: What Makes Them Successful?
One of the reasons for the recent popularity of memecoins is the growth of social networks and internet culture. Memes now make up a significant part of online communities, and memecoins have become a natural extension of this trend. The expansion of communities on Reddit, Discord, and other online forums has made memecoins more accessible than ever before and attractive to investors, and their popularity continues to grow.
One of the additional reasons for the popularity of meme coins is the desire to get rich quickly. While other cryptocurrencies like Ethereum and USDC may require some time to increase in value, meme coins can experience significant growth within a short period. According to a study by Watcher Guru, if an investor had put $1000 into the meme coin PEPE on April 17, 2023, by May 3, their tokens would have been worth $36,500.
Buying MemeCoins: Important Information and Tips
Some meme coins are not traded on exchanges, which can create difficulties for newcomers in the cryptocurrency space who want to acquire them. However, the process of purchasing these coins is generally similar across different coins. For illustrative purposes, let's consider an example with the coin PEPE.
First and foremost, make sure you have a wallet installed, such as Metamask or Coinbase Wallet. If you don't have a wallet yet, you should get one. Then, you need to acquire Ethereum by purchasing it or transferring it to your wallet from another exchange. Once you have a sufficient amount of Ethereum available for exchange, visit the website Uniswap.com and connect your wallet to the decentralized exchange (DEX).
Please familiarize yourself with the token address: 0x6982508145454Ce325dDbE47a25d4ec3d2311933 and select the Pepe Coin. Double-check to ensure that you are working with the correct coin and sign the transaction. Then specify the amount of ETH you want to exchange and receive the corresponding amount of $PEPE. Click the "Exchange" button and sign the transaction.
Shortly after that, within a few seconds, your wallet should be credited with your Pepe Coin tokens.
The procedure is applicable to various different tokens, and all you need to do is change the contract address. For instance, if you are interested in acquiring the TURBO token, you can access the contract on etherscan.
You can purchase certain meme coins such as SHIB or DOGE directly on cryptocurrency trading platforms like Coinbase. Additionally, it is possible to acquire PEPE through exchanges such as OKX or Binance.
Potential Threats and Possible Dangers
Before making a purchasing decision, it is important to consider that memecoins can provide fast profits but are also subject to sudden price fluctuations. This can make them a high-risk investment and may not be suitable for everyone, especially those who are not prepared for the risk.
Every success story about someone earning hundreds of thousands on Memecoin is usually accompanied by a reality check: there are numerous individuals who have lost significant amounts but prefer not to share it on social media. In one thread under the username NFT_Doctor33, several traders shared their losses to demonstrate that the cryptocurrency space encompasses not only constant victories and profits but also failures.
Given the ongoing development of meme coins, observing their impact on the wider cryptocurrency market will be fascinating. Whether coins like PEPE will maintain their long-term success or give way to other trends, they have already earned their place in the history of NFT as a significant contribution to the crypto ecosystem.
