What is a memecoin?
Why do memecoins are so famous? Are they to be avoided altogether? Or are they the most intriguing opportunity for crypto investors looking for yet another 100x gem? Well, let’s start at the beginning!
For those who don’t know, memecoins (also known as meme coin or shitcoin) are cryptocurrencies that have gained a lot of popularity especially in the bullrun of 2021, confirming themselves in the years to follow. Distinguishing them among other cryptos is easy because their identikit is well delineated:
- Theygo viral as soon as they areborn, and in no time they are on everyone’s lips, especially those less experienced in investments and cryptocurrencies. Just as quickly they can collapse and leave major losses for those who arrive a little late;
- They are often promoted by influencers who are not involved in crypto but have a large following on social media. More generally, they are pushed through fairly thumping marketing campaigns;
- Most coin memes carry the name of a dog to which the logo is also based. Yes, a dog, but also other pets and various characters. Now let me explain;
- Tokenomics play so much on psychological aspects that lead people to think they have found the goose that lays the golden egg. How? A huge supply makes it possible to buy even billions of specimens at a low price, giving the feeling of wealth given by abundance.
Curious? Very well, let’s continue then!
Memecoins origins
It all stems from the first meme coin: Dogecoin… and who doesn’t know it? It was 2013 when Jackson Palmer and Billy Markus, two computer programmers, were inspired by a famous viral meme on the web depicting a Shiba Inu dog breed. The Doge meme was reported on a coin and bang: it was done…in the literal sense of the word!
The two creators of Dogecoin, in fact, explained that they created this cryptocurrency as a joke. The basic idea was to create a “satirical” coin in response to the proliferation of cryptocurrencies of all sorts, including those of dubious reliability.
Certainly, this game has become something more. After attracting the attention of the crypto community and, subsequently, also of major figures such as Elon Musk, Dogecoin has become part of the top 10 cryptos, placing itself ahead of much more structured and promising projects for the future. Years later, the coin continues to confirm itself.
The positive note about DOGE is that it still has its own blockchain, which, in all honesty, also works quite well, is secure and has low gas fees. In short, a great medium for exchanging value. In contrast, many meme coins are simply tokens that rely on existing networks (such as the BNB Smart Chain and Ethereum) and, as a result, have a significantly reduced intrinsic value.
Since Dogecoin we have really seen it all. Among the top memecoins we can find Shiba Inu, Floki Inu, Akita Inu, Alien Inu, Dogelon Mars, MAGA memecoin, Pepe Coin and, in 2024, BONK.
Often the initial pump from these coins is remarkable, but the enthusiasm soon dies down. That’s when the roller coaster ride begins, very frequently resulting in large losses to laggards.
Can memecoins make you rich?
And here we come to the hot button to answer our initial questions.
Are memecoins really a good investment? The main problem lies in their usefulness. In fact, meme coins have none, which makes them unpromising in the long run.
The risk is that after the initial moment of glory and virality is over, the price deflates and yet another meme coin ends up in the drawer of forgotten things. While it is true that many people have gained from riding the wave, it is also true that many others have been burned by meme coins.
Memecoins can only be an investment if taken as a pure gamble, with designated capital consistent with the idea that we could lose it forever. It therefore makes no sense to call them “investment,” when the correct term is gambling.
Let us break a lance in their favor, however: with the right knowledge, experience, and high risk tolerance, memecoins are one of the best assets to achieve significant gains even in very few days. In short: it’s either the stars or the stables.
And NO: meme coins can’t make you rich, except for a few exceptional cases.
"Memecoins can only be an investment if taken as a pure gamble"
Solana memecoins
In the past, Ethereum and the BSC were the ecosystems of excellence in the meme coin world. However, times are changing and another blockchain has joined the list: Solana.
The choice is not random. Solana is a very high-performance network, which has improved a lot over the years and limited the major problems that plagued it. Thanks in part to solutions like Pump.Fun, today it is easy to create your own token meme to launch. So, especially in 2024, memecoin mania exploded on the network, attracting billions and billions of dollars.
Today we find several meme coins with significant market capitalization on Solana. Prominent names include Dogwifhat, Peanut the Squirrel, Popcat and Cat in a dogs world. To those unfamiliar with the industry it will seem absurd, but put together they raise about $6.8 billion. The figure, updated to December 2024, may vary so much, but it is still impressive: nearly $7 billion. Recall then that heavier names such as DOGE, which alone has a market cap that exceeds $60 billion, are missing from the roll call.
Where to buy memecoins?
If despite the great dangers you plan to buy meme coins, you have several options available to you.
First, DEXs generally list the majority of these assets, sometimes even automatically. For the BNB Smart Chain, impossible not to mention PancakeSwap. However, from Sushi to Uniswap, one is really spoiled for choice.
Decentralized exchanges are fine under two conditions:
- You already know DeFi and know your way around;
- You have cryptocurrencies available .
If the answer to point 2 is no, you will necessarily have to switch to a CEX such as Binance, Bitget, ByBit, Crypto.com or Coinbase. We suggest you take a look at our tutorials and choose the one that is right for you, also taking advantage of our referral links to reduce your exchange fees.
Last warning: think again before buying memecoins. Before you make a decision, watch this video where we break them down and describe how you can move safely. And if you decide to do so, good luck!
