The popularity of Meme coins increased significantly when a series of meme coin projects increased by several hundred to several thousand percent in just a few days. Many Meme coins such as Dogecoin, Shiba Inu and PepeCoin have become projects that many investors are interested in on social networks and opened a fever in the Meme coin investment wave. Let's learn about what Meme coin is and what investors need to keep in mind when investing in Meme coin in the article below.

What is meme coin?

Currently, although there is no official definition of Meme coin, this term is often used to refer to electronic currencies inspired by funny images, events, or content. popular on the internet. Unlike currencies created from complex algorithms and rules such as Bitcoin and Ethereum, Meme coins are often created for entertainment purposes and do not carry any technical value or solve any problems in the blockchain market. .

How did meme coin create an investment fever?

Dogecoin is one of the first Meme coins developed with the symbol of a Shiba dog, which appeared in many memes on social networks in the 2010s. 2021 can be considered one of the "booming" years. ” of the Meme coins, Dogecoin and Shiba Inu are leading the meme coin niche, attracting the attention of many investors and skyrocketing in price and market capitalization. As of November 2021, DOGE has increased over 8,000% since the beginning of the year and is ranked 9th by market capitalization on CoinMarketCap. Meanwhile, Shiba Inu has grown more than 60,000,000% since January 2021.

Elon Musk, one of the most influential figures in the cryptocurrency market, posted a post on Twitter in July 2020, helping Dogecoin increase in price and stimulating the development of follow-on cryptocurrencies, named after related dog breeds such as Shiba, Floki, Akita, Husky and many others. Shiba Inu was released in August 2020 and caused a shock when transferring half of one million billion coins (worth 7 billion USD) to the founder of the Ethereum network.

Why does Memecoin attract many investors?

Myths about “looks cheap” prices

Instead of having to spend up to $28K to own 1 BTC, with Meme coin, you only need to spend $1 and you can own thousands or even hundreds of thousands of tokens. Meme coins often have extremely low prices, with "a lot of zeros behind the commas" causing many people to mistakenly think the coin price "seems cheap" without even realizing the project's capitalization is too high compared to market.

This reason comes from the fact that Meme coin is a cryptocurrency with a huge or infinite token supply. For example, the Shiba Inu coin (SHIB) has a total token supply of 1 quadrillion tokens, whereas, DOGE has no maximum supply and already has over 100 billion tokens in circulation. However, because Meme coins usually do not have a token burning mechanism, the huge supply of tokens keeps their prices relatively low.

Increase prices regardless of the market

Currently, there are more than 300 Meme coin projects on the market, with most named after animals such as dogs or cats. Meme coins attract the attention of many investors largely due to the sudden increase in price just because of a quote from a famous person, such as Elon Musk or Mark Cuban, when they shared about various types of Meme coins. on social networks. Their tweets or posts can make a huge impact on the value of that Meme coin.

A typical example is Dogecoin, one of the most famous Meme coins in the cryptocurrency community. It was initially created in 2013 by Jackson Palmer and Billy Markus as a joke but quickly attracted community interest. In 2021, Dogecoin officially became the focus of attention when billionaire Elon Musk frequently mentioned it on Twitter and in public statements. This brought Dogecoin to its peak with a market capitalization of up to 90 billion USD and once ranked in the top 5 capitalization rankings.

What are the prominent Meme coin projects? What should investors do during this period?

Recently, the $PEPE green frog meme, after growing several thousand times, made people gossip that the meme coin trend fever has returned. This growth caused a number of other meme coin projects to increase, such as Wojack, McPepe, Pepe the frog,... increasing by hundreds of percent in a few days.

But, are these projects worth investing in? Or is this just a pump-and-dump scheme? What do investors need to know about meme coins?

All will be explained at: https://theblock101.com/meme-coin-la-gi-tro-dua-hay-co-hoi-dau-tu-doi-doi