From the iconic 'Dancing Baby' of the 1990s to the spotlight of today's Oscars, memes have become an integral part of our daily lives. With their diverse purposes and forms, memes have certainly not ignored the crypto hype.
Memecoins are exactly what they sound like—memes operating on the blockchain, thriving on hype and community engagement while capitalizing on their popularity. However, due to their blockchain foundation, memecoins currently offer relatively few benefits, though this is expected to change as cryptocurrency gains widespread acceptance and new use cases for memecoins emerge.
<aside> 🔒 A cryptocurrency subcategory inspired by memes.
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Memecoins are cryptocurrencies that draw inspiration from popular internet memes, viral trends, and pop-cultural events.
Among the most notable examples of memecoins are those featuring the Japanese Shiba Inu dog Kabosu, Dogecoin, various iterations of the Pepe the Frog cartoon, Elon Musk's memecoin called Grok, and more.
Memecoins attract the interest of new users who are eager to explore and experiment with web3 and blockchain technology in an accessible and unconventional manner.
<aside> 🧠 Typically, memecoins do not have a capped supply, with the exception of Shiba Inu (SHIB), which has a total supply of 1 quadrillion tokens. Additionally, they can have a very low value per token.
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Memecoins function similarly to any other cryptocurrency; they are built on blockchains and utilize smart contracts.
There are over 1300 memecoins listed on CoinMarketCap.
Memecoins are primarily utilized for various purposes, including:
👉 Community building: Memecoins often serve as a means to build communities of like-minded holders who share an interest in the humorous aspect of the memecoin. These communities can also come together to support fundraisers, charity projects, and other causes.
👉 Tipping: Memecoins are frequently used as low-cost and user-friendly online tipping currencies within the crypto community. They enable individuals to support, engage with, and express appreciation for others in the community.
👉 Learning: Memecoins provide an engaging way for individuals to learn about cryptocurrency and blockchain technology. Their fun and lighthearted nature make them accessible tools for education in the crypto space.
👉 Speculation: Some memecoins attract significant investment interest and unexpected attention from the crypto audience, presenting potential investment opportunities for speculators.
Some memecoins have the potential to evolve into larger projects, such as Layer-2 solutions, decentralized exchanges (DEX), play-to-earn games, the establishment of metaverses, and more.