A meme coin typically gains off a social media or an internet-based joke. Meme coins have been a hot topic of discussion in 2021 – but you need to know what they are and the risks before investing in them.
Meme cryptos Dogecoin, Shiba Inu and TigerKing explained
It all started with GameStop and AMC earlier this year, when a Reddit mob trolled short-sellers by driving up the prices of those stocks. The memes then spread over to cryptocurrencies – and there are now a few major ones today.
What are the risks?
Before you invest, keep in mind that cryptocurrencies come with big risks. This is mainly because of the volatility in the industry.
Which are the major ones?
The surge of the meme coins this year all started with Dogecoin.
That was then followed by Shiba Inu, which both feature the same dog breed in their logos.
The image became a popular internet meme called doge, and it features the dog surrounded by text in the comic sans font with words like “much wow.”
Both Shiba and Dogecoin have been popular dog meme coins this year.
Another dog meme that has picked up traction this year has been Saitama inu, whose logo appears to feature a wolf surrounding a human face.
“Tokens like Shiba Inu, Dogecoin and newest gainer Saitama are all a part of the evolution of digital finance in their own unique way,” Chris Kline, chief operating officer and co-founder of Bitcoin IRA, recently told The Sun.
Separately, Tiger King is a meme coin that has picked up strong momentum off the past month, which is based on the popular Netflix series.
Do they have value?
This will depend how you define it – but yes meme coins do technically hold value.
The question is whether they will be able to sustain value.
And this will depend on the internet and if it will ever lose interest in those meme coins.
Tesla founder Elon Musk has also been a key ally in driving up the price for Dogecoin and Shiba in particular.
At times he’ll post a tweet or a picture that could send the price of the two cryptocurrencies soaring.
He did that in October when he posted a picture of his Shiba puppy on the social media site.
Plus, TigerKing has been rising as season two gets set to debut on Netflix next week.
When it comes to meme coins gaining Adam Garcia, founder of investment information website The Stock Dork, previously told The Sun that “every frenzy is sure to be followed by a nose-dive.”
So currently they have value – but that isn’t to say they will in the future.
“The point is: like with any other coin, you should only invest the amount you’re ready to lose,” Mr Garcia said.
We’ve done price predictions for Bitcoin, Ethereum, Dogecoin, Shiba Inu, dYdX, EOS, Saitama, Loopring, Decentraland, and Ethereum Name Service.
Plus, we recently explained four things you need to know about Dogecoin.