Why Do People Get Crazy About Meme Coins?

In 2021, the price of a meme coin named Dogecoin jumped nearly over 800% in 24 hours. Today it has a market cap of about $8 billion. What are the reasons for such cosmic growth and what is the point of meme coins?

What are meme coins?

As the name implies, a meme coin is a cryptocurrency usually inspired by memes or internet jokes. They are a product of crypto and pop culture met together. These coins inherit the “virality” of memes and have the potential to grow astronomically. For instance, Pepe coin went from being worth literally $0 to achieving a market capitalization of almost $2 billion in less than a month.

How do they differ from regular cryptos?

Despite their light-hearted origin, meme coins are as real as any other cryptocurrencies but quite more volatile. There is always a lot of fuzz around these cryptos, and their price — backed and driven solely by public opinion and celebrity endorsement — is unpredictable.

What is the formula for success?

In fact, new meme-based tokens are being created each day, but only a few will explode in popularity. What are the ingredients that guarantee that humorous currency will gain steam and value? No one can say for sure, but there are some potential factors.

Approval and investment of the industry’s whales

The power of the meme itself

Team and marketing

When choosing meme coins, don’t forget to do your own research.