Meme Coin: Buzz or Real Impact?
Back in 2013, two software engineers opted to develop Dogecoin, a cryptocurrency created as a joke to parody the hype surrounding Bitcoin and other cryptocurrencies. Its logo features the dog from the popular “Doge” meme. What was really not a joke, however, was that this coin started the era of meme-based cryptocurrencies.
What is a Meme Coin?
Meme coins are a category of cryptocurrency that draws most of its popularity and value from community engagement and social media. Many originate as some kind of joke or meme and can be highly volatile.
Most meme coins are created as tokens on existing blockchains, often utilizing platforms like Binance Smart Chain, Solana, or Polygon. This means they operate on other platforms and do not have their own independent blockchains.
Сhoosing a suitable blockchain is usually about finding one that offers a big, active community and lower transaction fees. That’s why many new Layer 1 and Layer 2 blockchains are becoming popular choices for launching meme coins. Layer 1 blockchains like Solana are built to handle multiple transactions at a lower cost, which helps meme coins reach more users without costing them a fortune. On the other hand, Layer 2 solutions (e.g., Polygon) work on top of existing blockchains like Ethereum to improve speed and reduce fees — making them a great fit for projects looking to tap into Ethereum’s large ecosystem without the high costs.
Most of these meme coins are fungible tokens. This inherently means that all tokens of such a type have the same value and could be exchanged for any other token without changing the overall value. It is worth noting that some projects may combine meme elements with non-fungible tokens. For example, there might be a collection of NFTs referring to the meme, whereby each token will represent some certain digital asset like a picture or video. These NFTs cannot be exchanged for one another, and their value will depend on the uniqueness and demand for specific tokens.
The Origins of Meme Coins
It all started in 2013 when Dogecoin was created based on the then-popular internet meme showing a Shiba Inu dog. Initially designed as a more light-hearted alternative to Bitcoin, Dogecoin soon gained flight thanks to its vibrant community and philanthropic causes.
In one of those inspiring acts of kindness, the Dogecoin community came together in 2014 to sponsor a NASCAR driver named Josh Wise. They managed to raise enough money to place the Dogecoin logo on his car, making it essentially a meme on wheels! But it was not all about money; it was a hilarious show of what a community can do if they unite around something they love.
How Do Meme Coins Work?
The main goal of meme coins is to build an entire ecosystem with or around them. Meme coins need such an ecosystem because it allows them to provide real use cases and engage the community in meaningful ways.
Several key components make the ecosystem of meme coins unique and effective:
1. Community
Active contributors discuss news, ideas, and projects and support each other by creating a culture connected with the meme coin.
2. DAOs
Many meme coins create their decentralized autonomous organizations that allow participants to make decisions on project development and fund distribution.
3. Apps and services
The ecosystem may include various apps, such as wallets for storing tokens, trading platforms, and projects that utilize tokens in games, Decentralized Finance (DeFi), allowing users to lend, earn interest on their investments, and conduct transactions without the need for banks, and more.
4. Games
Through play-to-earn mechanics, users can earn meme coins by participating in gameplay, while many games also incorporate non-fungible tokens (NFTs), allowing players to buy, sell, and trade unique in-game items.
5. Cultural and creative
Some artists create unique artwork inspired by Dogecoin and the broader meme culture. They showcase and sell their creations on platforms like Redbubble, allowing fans to purchase art prints and other merchandise that celebrate the playful spirit of meme coins. This not only promotes the artists’ work but also strengthens the Dogecoin community.
However, it is not enough to only provide these services and have a thriving ecosystem. This is where the community-related activities come into place. It may involve:
Charity initiatives
The community often organizes fundraising events for various causes, such as supporting disaster relief or sponsoring athletes, which strengthens community bonds and raises awareness.
Communication networks
Active participation on platforms like Discord, X (formerly Twitter), and Reddit encourages interaction among community members. Discord offers dedicated channels for various topics. Members share memes, discuss developments, and provide support, fostering a vibrant community atmosphere.
Creative contests
Hosting online quests and Web3 games that feature leaderboards. These interactive experiences create a sense of community and friendly competition among participants.
Meetups and events
Organizing local or virtual meetups. These events can offer special experiences for ecosystem members, such as exclusive discussions with influencers or networking opportunities with industry experts.
Airdrop-free distribution of tokens
Attracting new participants and, at the same time, rewarding current ones. For example, tokens can be distributed to users who hold a certain amount of coins, complete simple tasks, or follow the project’s social media channels.
Decentralized Autonomous Organizations (DAO)
Allowing users to vote on what happens next regarding project development. For example, token holders can vote on new features or how project funds should be allocated.
Popular Meme Coins in the Market
While there are literally thousands of such meme coins, a few stand out as the most popular and influential. Let’s take a closer look at some leading meme coins.
Dogecoin (DOGE)
First introduced in 2013, Dogecoin instantly gained popularity with its fun logo and amiable community. Later, high-profile figures like Elon Musk provided a lot of attention and support, which helped build this popularity. He changed the X (ex. Twitter) logo to the Shiba Inu dog, which is the mascot of Dogecoin, in July 2023. This change led to a significant surge in Dogecoin’s value, with prices spiking by over 30% shortly after the logo swap. Despite small price moves, Dogecoin remains a prominent asset in the meme coin space, maintaining an active community with high liquidity.
Shiba Inu (SHIB)
This coin was launched in August 2020 as an experiment in decentralized community building and gained quite a large following right away, featuring as the “Doge killer.” From its origins as a meme coin, Shiba Inu evolved into a large ecosystem hosting several projects, from a decentralized exchange, ShibaSwap, used for trading and providing liquidity of SHIB and other tokens, to providing special NFTs called Shiboshis that will be utilizable in future gaming applications built on top of this token to increase the level of community engagement and interaction.
Mem Сoins and Community: How It Works
According to Maslow, one of the leading researchers in motivational theories, belongingness is one of the basic needs of humans, which comes right after physiological and safety needs in his hierarchy. People need others to feel that they are taken for granted, accepted, and of importance, basically much needed for their emotional well-being.
Further, Tajfel and Turner introduced social identity theory, underlying that individuals receive part of their self-esteem from their group membership. A sense of belonging to the community intensifies a person’s identity and, therefore, gives a boost to their self-esteem and social standing.
These insights demonstrate that the need to belong to a community is a fundamental aspect of human psychology, significantly influencing behavior and mental health. Memes, being humorous and simple, can engender feelings of belonging and community among members. Meme cryptocurrency communities are more like social groups where financial gain is important, but participation in a shared culture is equally valued.
The Dogecoin community has a long history of philanthropy. One such example is The Water Project, which has been accepting Dogecoin for over six years to support monitored water projects in Africa. The American Cancer Society uses this platform to collect Dogecoin donations, disbursing funds toward patient care and resources in their fight against cancer.
Shiba Inu (SHIB) has been recognized as the most donated meme coin, highlighting the growing role of such cryptocurrencies in charitable efforts. This acknowledgment comes from Ethereum co-founder Vitalik Buterin, who praised Shiba Inu for its philanthropic contributions, including donations to the Seungil Hope Foundation in South Korea, which supports ALS patients.
The community within the meme coin ecosystem shines through examples like these, showcasing how concerted effort can deliver actual value. This dedication not only supports charitable causes but also fulfills the need for community members to feel significant and needed.
The Future of Meme Coins: Are They Here to Stay?
The recent partnership between Shiba Inu and Mass Finance marks a pivotal moment for meme coins, emphasizing their potential to integrate into traditional financial systems. This collaboration leverages AI-driven solutions to streamline financial processes, making it easier for businesses to onboard into the Shiba Inu ecosystem.
As Shiba Inu’s top executive, Lucie, highlighted, this partnership aims to enhance the adoption of meme coins, particularly within the business community, as a pivotal link between the traditional financial sector (Web2) and the burgeoning decentralized economy of Web3.
This move raises several important trends for meme coins as a whole. First, partnerships with established financial firms can legitimize meme coins, showcasing their ability to operate within traditional financial frameworks. Second, increased collaboration may lead to wider acceptance and usage of meme coins among businesses and consumers, facilitating their real-world application.
Furthermore, these partnerships could reduce the volatility commonly associated with meme coins as they integrate into more stable and regulated financial ecosystems. This trend could spark greater interest in these cryptocurrencies by opening up new opportunities for businesses to utilize meme coins in their financial operations.
Summing Up
What is a meme coin? Buzz or real impact? Community involvement and dedication to meme coins are excellent examples of collective action that can lead to financial growth and substantial charitable contributions. This illustrates that meme coins offer real value and drive a real impact. Their ability to mobilize communities for meaningful causes showcases their potential to create positive change in the world. If you’re looking to jump on this trend, or reach out to Aetsoft for in-depth guidance and all the details you need.
Disclaimer
Information in this article is not offered as advice on any particular matter and must not be treated as a substitute for specific advice. In particular, Information in this article does not constitute professional, financial or investment advice and must not be used as a basis for making investment decisions and is in no way intended, directly or indirectly, as an attempt to market or sell any type of financial instrument. Advice from a suitably qualified professional should always be sought in relation to any particular matter or circumstances.
FAQ About Mem Coins?
1. How can I get a mem coin?
You can buy meme coins or even launch your own meme coin. While various platforms and tools can assist you in creating a unique coin tailored to your community or project, we offer our helping hand to make this process a real adventure, not a challenge.
2. What are meme coin prices?
Meme coin prices fluctuate frequently due to market dynamics, but currently, they generally range from a few cents to just over a dollar, depending on the coin. Popular meme coins like Dogecoin and Shiba Inu remain well-known, with varying market activity and interest.
3. How do meme coins trade?
Their trading activity is driven by community engagement and social media trends. For instance, popular meme coins like Dogecoin and Shiba Inu have strong followings that can influence price movements based on online discussions and celebrity endorsements. As of now, platforms like Binance and Coinbase are facilitating the trading of these coins.
