As their name implies, meme coins are a kind of cryptocurrency inspired by memes, interesting, or funny ideas captured by an image, video, or other forms of media. Dogecoin and Shiba Inu are two of the most popular and well-known examples.
Key Takeaways
As many meme coins have an unlimited supply and their popularity is largely driven by pop culture, meme coins are highly volatile and subject to extreme changes in value over very short periods of time.
Meme coins work like any other cryptocurrency, taking full advantage of the blockchain and related technology. In particular, they’ve popped up on blockchains that use smart contracts like Ethereum and Solana.
Currently, Dogecoin and Shiba Inu are the leading meme coins, with USD 16 billion and USD 13 billion market caps, respectively, though there are hundreds of others available (as of March 2022).
Investing safely in meme coins requires verifying liquidity pools are tied to burn addresses, ensuring third-party audits have been completed on the project, and avoiding coins where any one entity owns more than 5% of the total supply.
While most meme coins in the past haven’t offered clear use cases, that’s beginning to change as some meme coins, like FLOKI, are also offering real benefits and uses. These coins are also known as utility meme coins.
What are Meme Coins?
Meme coins are cryptocurrency, like Bitcoin or Ethereum. But unlike those tokens, meme coins are normally designed as an homage to a meme, an interesting or funny idea captured in an image, video, or other forms of media. Like the memes they’re based on, meme coins are designed to go viral and be shared.
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