At meme cryptocurrencies are virtual currency projects with some connection to elements of pop culture, and that have become popular in the crypto market in recent years, but not always for the best reasons.
The purpose of these cryptocurrencies ranges from comedy, such as Slap Coin — the coin that registered the Will Smith slap on Chris Rockat this year’s Oscars ceremony — even fraudulent schemes such as Squid Game Coinunofficial token based on the Netflix series “Round 6”.
Although Slap Coin and Squid Game Coin have not become widely known, other meme cryptocurrencies gained space in the crypto market, as in the case of Dogecoin (DOGE) and Shiba Inu Coin (SHIB).
CoinMarketCap data points out that meme cryptocurrencies had $18 billion in market capitalization as of May 20.
The two cryptos in this category linked to Shiba Inu dog memes are responsible for the vast majority of this value. dogecoin represents more than 60% of the market capitalization of meme cryptocurrenciesWhile Shiba Inu Coin accounts for 35%.
Like other virtual currencies, the meme cryptocurrencies are not immune to volatility. These can go up when they are listed on brokers, when they are accepted as forms of payment or due to a specific event.
In 2021, the American basketball team Dallas Mavericks, from billionaire Mark Cuban announced that he would accept Dogecoin as payment for ticket purchases.
At the beginning of this year, the Tesla (TSLA; TSLA34), an electric vehicle company in Elon Muskbegan to accept the same meme cryptocurrency as payment for merchandising items.
The two events boosted the price of DOGE at the time.
Meme cryptocurrencies demand attention
Since specific events, such as Will Smith’s slap on Chris Rock, can motivate the creation of tokens, it is necessary to be aware of the meme cryptocurrenciesas they are more susceptible to fraud attempts.
Second Yahoo Financesudden increases in volume of these cryptocurrencies were observed at times when they had greater visibility, such as when Elon Musk hosted the television show Saturday Night Live in 2021.
That day, the self-proclaimed self-proclaimed “Dogefather” billionaire said that cryptocurrency was a faster way to make money, causing the price of DOGE to skyrocket.
However, the rise was ephemeral as, shortly thereafter, dogecoin dropped dramatically — a loss from which it has yet to recover.
although the meme cryptocurrencies are defended by some traders in the crypto market, without the push of institutional investors or the ability to be more efficient in transactions, these coins may not achieve the same value or level of adoption as other cryptocurrencies or stablecoins.
*With information from Yahoo Finance
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Source: Moneytimes
I am an author at Global happenings and I mostly cover automobile news. In my time working in the automotive industry, I have developed a keen interest in the latest developments and trends. My writing skills have also allowed me to share my knowledge with others through articles and blog posts.
