Mem-coins: why comic tokens are popular?

On the cryptocurrency market, there are many different investment instruments of varying degrees of promise. Among them, the so-called meme-tokens, which captured the market in 2021, stand out.

Read about why these simple and unpretentious architectures are in demand in this article.

Definition

Memorial currencies are digital assets, the concept of which is some kind of humorous idea. Usually, the developers of such startups do not offer any special ideas and initiatives, at most they slightly improve the technical component of the protocol in comparison with the main, older cryptocurrencies.

They are usually created and based on a specific joke or event. And until recently, the developers resorted to this technique not so often, but after the intervention of Elon Musk and a couple of topical comments, the situation changed.

Popular meme tokens

There are several different meme currencies on the market in 2021.

Dogecoin

Dogecoin is the first project of this type. It was created in 2013 and really was meant as a joke: the authors did not even plan to somehow monetize their idea. For a while, Doge was not in demand outside the community, but then something went wrong.

The story of this miracle began after a comic tweet written by Jackson Palmer in the wake of the popularization of Bitcoin: it contained a reference to the popular photo-toad. For some reason, the irony got a lot of likes, and programmer Billy Markus suggested that the idea be turned into reality.

The technical basis was the algorithms of Litecoin that already existed at that time, including Proof of Work or proof of work. Innovation and modernization are not on the priority list of this project.

The jump in the value of the token occurred more than six months ago after Elon Musk had his say. His positive appraisal gave investors an incentive to add the coin to their investment portfolio.

The historical maximum value was reached on May 8: then the price reached $ 0.7376. After that, the rate began to decline gradually.

Shiba Inu

SHIB is also dedicated to the image of a dog - it is the central character and mascot of the entire project. It launched in 2020, before the Dogi boom, and, unlike the mastermind, uses the Ethereum blockchain.

The authors added some novelty: not just a joke, but also a strong competitor to Doge, which is directly stated on the site. They also launched a decentralized exchange with liquidity pools and other earning opportunities, which gained more than $ 1.5 billion in volume in the first days of operation.

An interesting fact from the history of the ecosystem: its developers abandoned the traditional funding of the team and sent half of the funds to Vitaly Buterin. He disposed of them in his own way: he partially donated to charity, which brought down the course.

Akita Inu

The ERC20 token with the issue of 100,000,000,000,000 AKITA was launched in February 2021 and has a low price compared to its counterparts: $ 0.000002147. Key Features:

1. Avalanche technologies are used;
2. More than 60,000 holders;
3. Sold on Uniswap. The asset is the least popular and least known, but in the long term, it may repeat the fate of Dogecoin.

Kishu Inu

After the explosion of Dogecoin, copycat projects began to spread over the network, copying not only a comic concept but also a theme.

The release of the Kishu took place in April this year on the ERC20 standard. Blockchain features:

1. Redistribution mechanism, thanks to which holders receive 2% of each transaction;
2. Emission of 100 quadrillions;
3. DEX Kishu Swap. It has the fastest growth among alternatives of this type: it has risen in price by 30% after launch.

Jew coin

One of the few tokens that ditched the canine theme and chose a different humorous direction. The technology is also different: it is based on the Binance Smart Chain, and 5% of the transaction is sent to the liquidity pool: this ensures the security of the network.

The project was launched in May 2021, and its feature is the ability to buy NFT with Shekel tokens.

Market trends

Analysts believe that the key to the success of such projects lies in their unusualness. They are different from what we have seen before, and thus grab our attention: even though the potential in terms of income is relatively small. Add to this the manipulation of the desire to make quick money on the HYIP and get a successful meme startup.

But the hype tends to pass, and in the long term, this promises the holders of losses: especially during periods of growth of industry leaders. The trend is as follows: developers are ready to release imitation memes, but whether they will invest in them after six months or a year of existence is a big question.

Risks

The main risk of investing in projects of this type is their volatility. They offer no technological innovation, pay no attention to progressive approaches, and virtually promise nothing. But for most traders and holders, it is still important to have at least some idea.

The volatility of meme coins is demonstrated by the situation with Doge. Throughout existence