Meme coins are now the rave in the crypto space. Starting with Dogecoin, the parody coin has rapidly etched out an ecosystem for itself attracting billions of dollars from eager investors. Beside the fact that meme coins promote community bonding and are meant as a joke, they often grow the fastest due to their high token supply and low prices. Below, we delve into what a meme coin is and the best meme coins on Cardano you can check out.
What is a Meme coin?
A meme coin is a cryptocurrency that comes from a mere joke or an internet meme. These coins do not have serious intentions, like Bitcoin or Cardano, which intend to change the world of finance, but are created out of fun, usually inspired by some popular internet culture, memes, or trends in social media. Meme coins are meant for entertainment purposes and do not hold any intrinsic value. Their value is largely driven by community hype and speculation.
Perhaps the most perfect example of a meme coin would be that of Dogecoin, which started as a funny alternative to Bitcoin in 2013. It is based on the "Doge" meme—a Shiba Inu dog with Comic Sans font captions that read out silly things. It was first done as a joke, but many people jumped on it and it became valuable. Today, so many people trade Dogecoin, and it has even been endorsed by influential public figures like Elon Musk.
How Do Memecoins Work?
Memecoins use blockchain technology like any other cryptocurrency. You can also store them in a crypto wallet or trade them.
But here's what makes them different:
Hype-driven: Most of the time, meme coins rise in value because of hype or excitement within a community, jokes, or attention on social media. The assets rarely become popular because they solve a real-world problem. Rather, they usually blow up from a mention by a celebrity or influencer.
Volatile: Because meme coins depend on fads and buzz on social media, prices are highly unpredictable. One moment they may be valued high; another, they hit rock bottom.
Fun and Accessible: Most people are into meme coins because they are not too serious. One does not have to know too much about crypto to see the humor or appeal behind a meme coin.
Why Do People Buy Meme coins?
If memecoins are jokes, then why would anybody buy them?
To Be Part of a Community: Many people love being part of some kind of online group that shares the same sense of humor or excitement about some particular meme.
To Make Money: Dogecoin's price went up so high a few years ago that it even made some people millionaires. So some people now buy meme coins with the hope that they can sell them for a profit when their prices increase.
For Fun: Some people can just buy meme coins for fun; no need to have any serious reasons, just to jump on a funny trend on the internet.
Popular Meme coins on Cardano
Cardano is a blockchain platform similar to Ethereum; however, it's more secure and greener. Cardano also has a number of meme coin projects. Let's take a look into a few meme coins on the Cardano blockchain.
1. Hosky Token (HOSKY)
The Hosky Token is one of the popular meme coins on the Cardano blockchain. On the Hosky website, it says that it is the "premier low-quality, doggo-themed meme coin" on Cardano. Hosky has been developed in order to poke fun at how people invest into tokens that look useless, and yet still go ahead to become popular.
While that may sound like a joke, Hosky actually has a very active community supporting it. The project engages frequently with its community through social media, and it is viewed as one of the more entertaining projects to join on the Cardano network.
2. DogeADA
DogeADA is a meme coin that combines the iconic Doge meme, that became popular through Dogecoin (DOGE), with the Cardano (ADA) ecosystem. It does not have any major uses but leans heavily into internet culture and humor, and builds a fun community spirit. It can be a source of nostalgia for Dogecoin investors who are looking for a similar experience.
3. SundaeSwap Token (SUNDAE)
While SundaeSwap is a Decentralized Exchange (DEX) on Cardano, it has something of a playful side with its token, SUNDAE. Keeping the name and branding around ice cream, it carries a sort of fun, light-heartedness with it, similar to that of meme coins. The SUNDAE tokens are used within the platform, but have a bit of that meme-like charm to them that draws people in.
Conclusion
Meme coins represent fun and entertainment in the world of cryptocurrency. Humor, community, and sometimes profit all flow together. They were created as a joke, but with time, some of them evolved into quite high values, Dogecoin and Shiba Inu for example. Cardano mostly has serious crypto projects, but it also has meme coins that give it a light-hearted side, like the Hosky Token.
Meme coins are quite fun yet also risky due to how much their prices fluctuate with changing trends. It is always good to do your research before diving in.
This is a great article. Great introductory article for people that may be new to the crypto Cardano space.