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The Meme Coins Rally: a Smart Investment or a Scam to Avoid?

Posted by
Ifeanyi Egede

Meme Coins are one of the fastest growing segments of cryptocurrency

Memes have for a long time been a sensation on the internet. You can find one in virtually every social networking app within seconds. We all love to share memes with friends and family. Many memes are produced and shared online; their popularity has become so great that they’ve made their way into cryptocurrencies. For example, the well-known Dogecoin – gained prominence when Elon Musk began tweeting about it, and ordinary investors began purchasing in droves. Billy Markus and Jackson Palmeras developed it to parody bitcoin (BTC) to offer the public a stress-free route to join the crypto space.

This move has shown in time to be an effective strategy to introduce to the public a stress-free route to hop on the crypto bandwagon, at least help novices make their way amidst all the confusion surrounding cryptocurrency.

It’s not all fun and games, however. It is money, and it’s a serious matter!

Is it Safe to Say That Meme Coins Are Here to Stay?

Meme currencies, fuelled by the increasing popularity of DOGE, are among the fastest expanding segments of the cryptocurrency industry. The rise of meme currencies seems to be an ambiguous concept for the whole sector. While meme coins are appealing to novice cryptocurrency investors, they also subject them to significant dangers.

Dogecoin possibly has emerged as a viable alternative to Bitcoin and Ethereum. However, when compared to the main cryptocurrencies, it is not as stable. In contrast, they have made few software upgrades and lack synchronized nodes. Let us not forget that Musk went on live television and called the entire thing a hustle, so the objectives of meme coin projects are pretentious.

The Impact of DOGE on The Development of Other Meme Cryptocurrencies 

Doge has blazed the trail! Following DOGE, many other meme cryptocurrencies have emerged, including SafeMoon, Shiba Inu, Hoge Finance, Tiger King, and Mona coin. Let’s have a look at a few of them:

The Shiba Inu (SHIB)

Shiba Token bills itself as “the Dogecoin killer.” It seems to exist only to dethrone DOGE as the meme cryptocurrency of choice. It even copies the Shiba Inu mascot from Dogecoin. – Swap SHIB on DappRadar

SafeMoon (SAFEMOON)

SafeMoon (SAFEMOON) was developed in 2021 to address issues related to cryptocurrency price fluctuations. It has a $2.2 billion market capitalization and has consistently grown in price since its start. Swap SAFEMOON on DappRadar

Mona Coin 

DOGE’s Japanese equivalent is MonaCoin, which may be the next meme coin to have a growth curve akin to DOGE. This coin’s user base is nearly entirely Japanese. However, investors may still trade MONA for USD on ShapeShift.

Is Doge a Good Place to Put Your Money?

Without a doubt, the million-dollar question. Early in the year, an unusual twist saw a huge buying frenzy, pushing stocks such as GameStop, AMC, and others over the sky. Investors were looking for the next commodity to purchase cheap and pump to startling heights.

Following this, Dogecoin’s price took a massive rally before coming to sit around $0.05 for most of the springtime. Even at about 50% of its all-time high, Dogecoin has risen nearly 6,000% since the beginning of January, giving it a market value of around $44 billion. However, since that time, the crypto market, in general, has been in a downtrend owing in part to Tesla’s decision to stop accepting Bitcoin payments for its vehicles owing to concerns cryptocurrency mining may have on the environment.

Nonetheless, despite the fast rise in price, Dogecoin is impossible to consider a serious investment. It’s just like a rollercoaster ride: you buckle up, enjoy the ride, and pray you don’t get ill or tossed off.

My Two Cents 

Meme coins are not the way to go if you want to create long-term wealth. As long as a cryptocurrency has no real-world use cases and is mostly based on the “Elon Musk Effect,” it will suffer enormous volatility, making it a risky investment, particularly since it is difficult to anticipate when it is time to exit the market before the bubble bursts.

Although, if you have the risk appetite and can beat the market in predicting where the price will go, you can make a lot of money from these digital assets.

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