Crypto:
29757
Bitcoin:
$66.918
% 0.25
BTC Dominance:
%54.3
% 0.12
Market Cap:
$2.43 T
% 0.29
Fear & Greed:
73 / 100
Bitcoin:
$ 66.918
BTC Dominance:
% 54.3
Market Cap:
$2.43 T

What Are Meme Coins? Why Are They Rise?

We have been using cryptocurrencies for tens of years. Cryptocurrencies are used on the other side as databases, borrowing, lending, trading, etc.

Meme coins are also a kind of cryptocurrency. Although they are not using the services, they are so popular, especially nowadays. Probably the main reason for this is the PEPE coin. 

Actually, they are tools that they use for making money. These days we are seeing many cryptocurrencies are targets of the SEC (Securities and Exchange Commission). That’s why maybe they will be limited products.

This blog contains about information of them and the main reasons for their risings.

What Are Meme Coins?

Meme coins were created as inspired by internet memes. Mostly they are common on Twitter and Reddit. I mean these memes spread and were popular on the platforms.

They don’t belong to their own blockchains, they are minted on other blockchain networks. The most common networks for a minting process are Ethereum and Solana. The most popular memecoins on Ethereum are Dogecoin and Shiba Inu, but on the Solana network is BONE Token.

Generally, they have a huge supply, that’s why they have a lot of “0” in their own prices. Whales or some institutional companies can manipulate these coins’ prices. Hence we must pay attention to these factors and situations.

Additionally, they have incredible volatility. For example, Dogecoin’s price. The price sometimes can down or up so fast. If you protect your own assets you must attend.

How Meme Coins Became Popular?

As said on the top meme coins became popular thanks to Reddit and Twitter Community. In general, meme coins were building and developing in there.

Actually, everything started with 2 companies: GameStop and AMC Entertainment. They said that their stocks’ prices rise up rose 100 times thanks to meme coins. Later on, started creating them on the market.

One of the popular meme types is a dog theme (Dogecoin, Shiba, Floki, Kishu Inu). The main reason for this is Elon Musk. Because he has a dog that has the Floki Inu breed.

Why Are They Rise Up?

The dogecoin is the first meme coin. Dogecoin’s price raised up after the GameStop and AMC meme hype. And then Elon Musk started supporting the meme coin.

In general, their prices were raised because of these reasons: Social Media Influencers, Businessman supports, high volatility, etc.

Dogecoin rally

In the 2021 meme coin rally, Shiba Inu has a huge price rising as “Doge Killer“. By any definition, Shiba benefits the Dogecoin rally. Everybody thought that it was the next Dogecoin.

Are They Secure?

Actually, there are 2 sides to the answer: Financial and Technical.

Everybody can create meme coins who have knowledge about coding. That’s why right now there are a lot of meme coin projects in the market. In this situation, we must attend when buying these coins as an investor. Because everyone doesn’t innocent. Sometimes they don’t lock the liquidity pool. I mean if you buy the coin using DEX, your money doesn’t lock, it’s directly added to the owner’s wallet. It’s a financial side.

Technical side about the coding of them and their own smart contracts. Mostly, they were created by one man. That’s why the person doesn’t want to spend time on writing the original contract Additionally, there are some backdoors in the smart contracts. The owner or scammer can rob your money using the backdoors.

You Must Pay Attention To These Factors 

First of all, we must pay attention to the liquidity pools and burning addresses. If you don’t keep an eye on these factors, you will face rug pulls. 

Secondly, we must know about token holders. If holders have tokens of more than %5 of the total supply, they can control it. It’s dangerous. We exactly mustn’t buy.

Finally, the token must have 3rd party auditor company. For example, Certik, Hacken, Packshield, etc. 

You can present your thoughts as comments about the topic. Moreover, you can follow us on Telegram, Twitter, and YouTube channels for the kind of news

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