Shiba

FOMO

when

Shiba Inu

The creator of the CRYPTUS educational academy, Nikita Grishunin, claims that they hardly ever provide novel blockchain solutions or innovative technologies.
Among the most well-known meme coins of late are DOGE, SHIB, PEPE, FLOKI, and BONK.
Many consider Dogecoin, which launched in 2013, to be the pioneering meme token. The Shiba Inu dog pictures found online were the inspiration for the coin.
In 2020, SHIB was the second. With very similar symbols and only subtle aesthetic differences, it essentially evolved into a younger version of DOGE. There were later alternatives that were comparable, but they haven’t piqued anyone’s interest nearly as much.
How have meme coins been so successful? The integration of meme-token applications like Notcoin and Hamster Kombat into the Telegram messenger has been a craze in the past few months. We want our users to spend as much time as possible engaging with the game, doing things like inviting their friends and watching videos for profit. New user adoption in the cryptocurrency market is the primary goal of the applications. Meme coins are becoming increasingly popular on platforms like TikTok, Reddit, Twitter (NYSE:TWTR), and others, all because of viral marketing. Influencers and celebrities have a large following that is constantly tuned in and can be easily influenced by persuasive arguments and calls to action, making them powerful distributors. Some readers actively seek out star publications in the hopes of discovering knowledge that the general public lacks.
Why and how meme coins became popular among investors A company that employs viral marketing strategies will advertise their wares on massive social media platforms like Reddit, Twitter, and TikTok. Meme coins rely heavily on social media hype and discussion to generate and spread information. Users generate interest in meme tokens by sharing them, discussing them, and speculating about their possible value. This leads to the FOMO effect, where people are afraid they will miss out on something cool. Creating an Audience and a Following — When meme coins take off, they usually give rise to social media groups where people talk shop, enter contests, and share info. Attracting new investors becomes much easier with these communities. A token’s popularity is greatly affected by the support of celebrities and influencers, such as bloggers and celebrities with large audiences. A rise in coin value and interest from newcomers can result from strong support. The minimal entry barrier to entry makes meme coins accessible to the masses. Centralized exchanges (CEX) facilitate trading of the most popular ones and make purchasing them easier. But here’s the thing: these meme tokens are already very popular, so the ordinary user probably won’t be able to get their hands on the extra profit that was promised.
Can you tell me the pros and cons of meme coins? If the value is low, then the volatility is high. The low value of meme coins makes them accessible to a wide range of investors. But it’s not easy to gauge when market volatility becomes a serious threat to one’s wealth. Extremely high profit margins mean there’s room for fraud and speculation. The potential for large profits from meme coins, should they experience successful growth, draws in a large number of speculators who purchase tokens with the sole intention of reselling them, which in turn causes price bubbles and crashes. Typical examples of manipulation and fraud in the meme coin market include “pump-and-dump” schemes, in which developers artificially inflate the price of their coins to trick investors into buying them, and then abruptly dump all of their coins to make a quick profit.
Proximity to Centralized Exchanges (CEX) = Absence of Essential Liquidity Many centralized cryptocurrency exchanges make it easy to buy and sell the most popular meme coins. But they’re usually just for fun and speculation, with no practical use or value (they wouldn’t work as a utility token, for instance) in any community. Due to their low liquidity, most meme coins make it hard to buy and sell tokens without suffering heavy price losses.
Meme coins are likely to have a short lifespan in the cryptocurrency market, although nobody can say for sure what the future holds. Notably, incredibly popular tokens are a great way to get people interested in the cryptocurrency market for the first time.

A triumph of memes: the enticement of junk tokens to investors

Blocksays

Other articles published on Jun 26, 2024

Worldcoin and Alchemy Join Forces for Blockchain Innovation

Will These Top Performing Altcoin Lead A 2x Surge Next Week?

South Korea-based Bithumb Exchange Announced That It Listed This Altcoin In Spot Transactions!

Court sentences HYDRO execs in landmark crypto securities convictions

Ponke Price Soars 14% As Crypto.Com Activates PONKE Trading And A FOMO Frenzy Erupts Around This ...

‘Most Altcoins Are Completely Worthless And Dead’: Expert Reveals Why Altcoins Will Underperform ...

Join our free newsletter for daily crypto updates!