Importance of Meme Coins: How do they operate?

What is Meme Coins?: How Do They Operate?

Find out everything you need to know about meme coins, including Dogecoin, Shiba Inu, and other lesser-known variations, as well as how to trade them.

Cryptocurrencies that take their inspiration from memes or have a humorous quality are known as “meme coins,” as the name suggests. Two famous examples are Shiba Inu and Dogecoin.

Important Takeaways 

Due to their widespread use in popular culture and the fact that there is usually an excess of supply, meme currencies tend to be extremely volatile.

Among the many meme coins out today, Dogecoin and Shiba Inu stand out.

Knowing all there is to know about meme coins involves:

Checking that burn addresses are linked to liquidity pools.

Making sure external parties have audited the project.

Make sure no one entity holds more than 5% of the total quantity.

Now that utility meme currencies have emerged, the image of meme coins as having no practical function is beginning to shift.

Discover the Myth of Meme Coins!

Meme coins are a cryptocurrency that pays tribute to the concept of memes, which are entertaining ideas conveyed through images, videos, or other forms of media. Meme coins aim to spread like wildfire, much like the memes they mimic.

Created in 2013 as a parody of Bitcoin and other mainstream cryptocurrency frenzy, Dogecoin (DOGE) is now the market leader in its category and the original meme coin. Software engineers Billy Markus and Jackson Palmer created Dogecoin without a supply cap because they wanted it to be an easy-to-use and entertaining alternative cryptocurrency. The launch of Dogecoin was met with immediate success, and its popularity skyrocketed on forums such as Reddit.

Dogecoin has had its share of ups and downs, but it has always managed to keep a dedicated user base and even outpaced Bitcoin in terms of daily transaction volume.

Dogecoin was the first meme coin, and if you want to know more about it, read our university essay.

Value and Volatility 

The value of meme currencies is highly speculative and extremely volatile because they are community-driven. The marketing efforts of Elon Musk and Mark Cuban caused Dogecoin’s value to surge. The price, however, dropped precipitously as soon as the excitement subsided. The design of meme coins is another factor that causes their value to fluctuate wildly. Because their supply is often infinite, meme coins are inflationary, in contrast to fiat currencies and the majority of cryptocurrencies. Like other digital wallets, a crypto wallet enables users to send, store, and receive cryptocurrency.

Meme coins remain a significant component of the cryptocurrency market despite the substantial financial risk associated with investing in them. Dogecoin and Shiba Inu, the two most popular meme coins, actually have market valuations in the billions. If you want to stay on top of the latest cryptocurrency trends, you need to know how meme currencies function and how they’re evolving.

Meme coins differ from conventional cryptocurrencies in the following ways, to summarize:

In a relatively short amount of time, the value of meme coins can fluctuate wildly.

They usually have an unlimited supply.

The present hunger around a meme currency determines its worth.

A token’s value can be extremely low for these.

Exactly How Are Meme Coins Operated?

Using the blockchain and other associated technologies, meme coins function similarly to other cryptocurrencies. Common platforms for its development are Ethereum and Solana, two blockchains that implement smart contracts.

You can easily purchase this coins and over 250 other coins on the app with Apple Pay, Google Pay, a credit/debit card, or over 20 fiat currencies sent from your bank account. Users can buy tokens and choose their payment method by tapping the “Buy” button on the home screen.

Advantages of Meme Coins After You Buy Them

“Tipping,” the act of rewarding individuals online for doing a nice deed, was Dogecoin’s primary use case in its early days. Meme coins are only sometimes useful, and some have even joined larger decentralized finance (DeFi) networks. As an example, the governance token of the decentralized exchange (DEX) ShibaSwap is Bone ShibaSwap (BONE).

This coins have only recently gained popularity. Elon Musk, Mark Cuban, and Snoop Dogg were among the famous people who helped propel Dogecoin’s price by 800% in one day in early 2021, making them a part of popular culture.

Elon Musk has since tweeted about Dogecoin on multiple occasions, causing its value to skyrocket. Dozens of additional meme currencies, including hundreds based on the doge meme, have also enmerged.

Name of token Describe it Meme Coins
Folki Inu


FLOKI’s ecosystem offers a 3D NFT metaverse, DeFi utilities, a crypto education platform, NFTs, a merchandise store, and more. The community has pledged to build schools as part of its charitable initiatives.
Doge killer


An integral part of the Shiba Inu network is the LEASH token. Because of its immense popularity, Shiba Inu is often called the “killer dog of Dogecoin” (DOGE).
Dogelon mars


ELON is going in the same direction as other famous dog-themed meme coins like Dogecoin, Floki Inu, and Shiba Inu. Elon Musk, a millionaire entrepreneur, and Dogecoin came together to form its name.
Baby Doge Coin


A deflationary coin, BabyDoge is intended to depreciate as time goes on. Anyone with BabyDoge will have more BabyDoge deposited into their account.


Bone ShibaSwap


The ShibaSwap ecosystem’s governance token, BONE, gives the #ShibArmy a say in future ideas. A user’s vote is weighted according to their BONE holdings.

How Secure Are Meme Coins?

Compared to other cryptocurrencies, Meme Coins are more speculative due to their large supply and volatility. The value of Doge could skyrocket tomorrow due to a tweet by Elon Musk or another celebrity, or it could sink into oblivion the very next day. Meme coins, as you may recall, are built off Internet memes. That being said, they do share a lot of characteristics with them, such as the ability to become viral and become outdated very fast.

Things to Remember When Purchasing Meme Coins:

Buying a cryptocurrency that could be vulnerable to attacks like a rug pull requires you to check that burn addresses have liquidity pools.

Make sure a trustworthy third-party firm has audited the meme currency project at all times.

Coins whose developers own a majority of the tokens should raise red flags. The ideal distribution of tokens would be for no entity to own more than 5% of the total.

To reduce needless risks, keep these items in mind and do your research (DYOR) on any coin that interests you.

Prospects for Meme Coins in the Future

Meme coins are currently trailing behind the most popular cryptocurrencies in terms of user acceptance. Still, it doesn’t spell their demise. It face the same biggest problem as other cryptocurrencies: not enough people know about them.

A New Wave of Utility Meme Coins

A shift towards a utility-focused approach is becoming apparent in Meme coins. An excellent case in point is Shiba Inu, a group with ambitious aspirations to build a Metaverse just for the Shiba Inu people called the Shiba Inu. A decentralized exchange (DEX) called ShibaSwap is already a part of the ecosystem.

The creators of Floki Inu, who want their coin to overtake Dogecoin in popularity, have highlighted the token’s practicality as a selling point.


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