Why Meme Tokens Are Becoming So Popular

Meme tokens are cryptocurrencies based on memes – humorous viral content that depicts life-related situations in a comic fashion. Among such tokens are Dogecoin, Shiba Inu, YooShi, the NCAT Token, FROGE, SAFEMOON and many others. They are legion and each coin has its own private army of loyal fans, often led by truly unique individuals. What are the factors that are giving these cryptocurrencies the power to conquer millions of hearts overnight?

In general, the popularity of all cryptocurrencies is growing. For example, according to a report by the Gemini brothers Winklevoss exchange, the number of cryptocurrency holders in the United States will double in 2021, as more than half of all respondents are interested in cryptocurrencies and have read about them in the news.

Veterans of the cryptocurrency community are tired of reading the same headlines about BTC and ETH, which is leading to the influx of news about new coin issuances. One needs but look at the top 10 currencies on Coinmarketcap over the past four years and compare it with the news background for the same period to draw a clear understanding of the reasons for the prevalent boredom. This is where memecoins step into play.

Any news of humorous new cryptocurrencies grab the attention of both veterans and newbies on the market. Not a day goes by without articles about memecoins on the home pages of leading cryptocurrency news channels. Perhaps, this is the reason why DOGE is more popular than ETH. According to a Harris Poll survey, 29% of US citizens who participated know about the meme-based DOGE cryptocurrency, while only 21% of Americans have heard about ETH. Naturally, this was made possible in large part thanks to the efforts of the memecoin’s main ambassador – Elon Musk himself. A similar situation can be traced in other countries. By relying on Google Trends, and comparing the number of requests, it becomes evident that DOGE was more interesting to network users in the United States, South Korea and Ukraine than BTC and ETH over the past 90 days.

Together with the attention from the media and strong influencers, meme tokens turn out to be quite serious and useful upon closer scrutiny. The fact of its operation on the blockchain with a full host of functionality attracted Elon to Doge. In his opinion, this memecoin is even better than Bitcoin. Perhaps, functionality is another reason for the popularity of meme tokens. Let us examine them closer then.

Dogecoin (DOGE)

A project by Jackson Palmer launched on December 6, 2013. During the first 30 days of its existence, more than a million people visited the project’s website. Dogecoin was based on the Luckycoin cryptocurrency, which in turn was based on Litecoin, which is in itself is based on Bitcoin. The reason for the creation of the coin was the initial boom of interest around Bitcoin and the advent of the first “crypto investors”. Everyone was discussing the new product. Palmer decided to joke around and created his own cryptocurrency to prove to everyone that investing a lot of money in such an unstable market is absurd. The name and image of the currency is also a joke, since the cryptocurrency is named after the doge meme – a Shiba Inu dog.

DOGE is a lightweight and pleasant coin. The low transaction costs and, until recently, its low price allowed the coin to be used within communities, on forums and even as a means of reward hovering slightly over a meager “thank you”. The coin also boasts a quick start, as users do not need a lot of money to buy it. Failing to figure out how it works and losing the transaction altogether is also a minor inconvenience, since the amounts involved are negligible.

The situation is changing, however, and many new DOGE holders treat it as an investment. The coin was supported by Elon Musk, Gene Simmons and rapper Calvin Cordozar Broadus Jr., better known under the pseudonym Snoop Dogg. But the joke started getting serious and many experts agree with opinion leaders that the current functionality of DOGE is quite acceptable for allowing it to compete with Bitcoin, and the wave of popularity has nudged developers to resume support and evolution of the coin.

The Shib Coin is an ERC-20 token on the Ethereum blockchain, named after Shiba Inu dogs. The tokens themselves are called Meme Coins on the project’s website. The project was launched in August of 2020.

Shiba Inu (SHIB)

The founder of Shiba, hiding under the nickname Ryoshi, chose the Ethereum blockchain for a reason. He believes that unlike most other networks, Ethereum is truly decentralized, secure, and well-established on the market. According to the founder of Shiba, Ethereum allows the creation of truly free and decentralized communities.

Shiba’s main goal is to create the best Decentralized Ecosystem (DECO) on the planet. The first step towards this goal will be the creation of the Shiba Swap decentralized exchange. The exchange will allow users to engage in profitable farming and liquidity mining through the coins of the Shiba ecosystem. As part of the development of the ecosystem, the team at Shiba will also release NFT tokens and a new Bone coin. There is already a second coin in the ecosystem called Leash.

​​​​​​​YooShi (YOOSHI)

This new meme token gets its name from the dinosaur found in Super Mario. At launch, the developers provided a solid host of functionality for their coin and took into account such important factors as fair launch and protection from whales. This may be of interest to those who are thrown off by the presence of the whales in the case of the previous two memecoins. The fact is that by possessing a large number of tokens, the whales can seriously affect prices, literally ruining private and small investors.

The YooShi developers are focusing on an NFT gaming metaverse and aim to create a new financial ecosystem integrated with blockchain and games that will make gaming more than entertainment.            The idea of giving users freedom of generating all gaming content might disrupt the gaming experience. Add to this the GameFi concept that implies the opportunity to earn when playing and you will get something like Grand Theft Auto with in-game assets that have a value in real world. Just imagine you could create and own unique cars in GTA, and earn on collecting them.

Froge Coin (FROGE)

The FROGE Meme Token is a DeFi asset designed to keep rainforests from being destroyed. The token is supposed to help in the fight against climate change and the consequences. It is also meant to protect various species of rainforest flora and populations suffering from the effects of deforestation.

And here is how it is supposed to work. 0.1% of each transaction in FROGE tokens is automatically transferred to the Cool Earth wallet as donations. This is how each token trader contributes to the protection of the environment. The higher the cost of FROGE, the greater the amount of deductions and the more effective the community’s contribution to solving the environmental problem.

      NCAT Token (NCAT)

The project entered the market in March of this year and is essentially a fork of another RFI coin. There are no clear statements that can be used to identify the problems that are being solved by the NCAT. “We are here to serve the masses” is the message the developers are sending to their users. The goal is to create a community of people who “work together to make the project successful.” As vague as that sounds.

From the point of view of business implementation and the usability of the NCAT token, it can be defined as a “giveaway”. The project is all about using its tokens for conducting sweepstakes, quizzes and other activities for promoting brands (including personal promotion).

From a trading point of view, the team denotes the usefulness of the token for adherents of the holding strategy, because 5% of each transaction is used for auto-generating liquidity.

SafeMoon (SAFEMOON)

Another new and popular project launched in March of 2021 by John Caroni, SafeMoon is a DeFi token deployed on the Binance Smart Chain. The project is entirely run by its community (at least in theory) and focuses on static functions of rewards and locked liquidity.

On the one hand, the platform has attracted over 2 million users, despite being only two months old, and has provided exponential return on investment. On the other hand, according to many, the project resembles a Ponzi scheme, because traders must pay a 10% commission when selling their tokens, of which 5% is returned to token holders. Benzinga and Lark Davis categorized SafeMoon as a Ponzi scheme, and WarOnRugs warns investors of a potential scam on the part of the creators. In addition, report issued in May by the HashEx audit firm highlighted significant vulnerabilities in the code that could lead to a hack.

​​​​​​​Not Just For The Hype

The similarities become apparent once each of the aforementioned projects is examined both separately and together taken. We can say that the initial love for the first memecoins, like Doge, arose due to the high level of prevalent non-toxicity, since no one expected an increase in the value of the coin, and the presence of extensive functionality, like for any other cryptocurrency, makes them much more than just a digital trifle to be toyed with. The community was ready to support and promote the coin without any financial vesting and that is the cornerstone phenomenon of memecoins.

But the situation is changing, as the growth in the prices of DOGE and SHIB showcased how their holders can grow rich overnight. Such neat little memecoins are thus becoming even more interesting for many. The price rollercoaster sparked the hype, but that is far from the only reason for the current popularity of such assets. It would be more accurate to state that the popularity is fueling the current and future opportunities of such coins, since serious technologies and professional teams capable of changing the world are the main actors of the underlying projects.

In some way, the current popularity of memecoins is a response to the need for positive changes in the world, since the fatigue of recent years from unpleasant events around the world is strong among the population. It is therefore gratifying to behold how even the most serious of things can be achieved by communities that band together under the banner of humor.

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