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In the midst of all the cryptocurrency scenarios, the past few months saw a rise in yet another interesting currency, called Meme Coins. Let’s deep dive into the same:

What are meme coins?

As the name says, these are digital assets derived from popular internet memes. The dictionary meaning of the word ‘meme’ is a humorous image, video or piece of text. Therefore, these crypto meme coins are not any different. Inspired by internet popular memes, they are sometimes as simple as a bitcoin but are also sometimes a replica of animated and cartoon depictions.

For example, the most well-known meme coin and the first in the world is ‘Dogecoin’, which is based on the "Doge meme" (featuring a cute photo of a dog accompanied by a funny text) that was popularized on the social media platform Tumblr. These coins were primarily originated to add entertainment value and hence, some of them have amassed multibillion-dollar market caps and garnered celebrity endorsements as well. 

What makes meme coins so profitable?

Well, Meme Coins have been around for quite some time but they gained popularity in 2021 when world-famous personalities like Elon Musk and Mark Cuban started to talk about DogeCoin. However, they do not have any economic and business value but are majorly used for trading purposes. Therefore, their market value is calculated on the popularity it has gained amongst internet audiences.

For instance, when the aforementioned personalities joked about DogeCoin, its value skyrocketed to another level.  Another example is ‘TamaDoge’, which went up over 400% in one day * however, the pup has not been able to sustain value. The major reason for its profitability is the fact that they are typically cost-effective, hence one doesn’t need to invest a huge amount to own it. 

So, if you are looking to invest in a ‘Meme Coin’ do research thoroughly and take a step cautiously. By, simply, looking beyond its hype and calculating its sustainability value.