What is Memecoin (Type/Categories of Cryptocurrency)
Definition/Examples
- Memecoin is a type of cryptocurrency that was inspired or originated from meme and jokes from the internet.
- The branding, logo, and name for a certain memecoin was also inspired by the meme that it’s based on.
- Community around a memecoin is usually the main reason that a certain memecoin is still exist.
- Some examples for a memecoin is Dogecoin (DOGE) and Pepecoin (PEPE).
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Usage
- Most of the memecoin that exist in the crypto market doesn’t have a specific use case.
- Memecoin can only be used to make payments, trade and other basic use case of any cryptocurrency. I mean the most basic thing.
Pros and Cons
Pros:-
- Memecoin sometimes can offer a high potential return especially a memecoin with a strong community behind it. The return rate of a certain memecoin can exceed 100x until 10000x if you time your market entry really well.
- Most memecoin also have a really low price that most people can afford. This already set the a really low barrier of entry for memecoin. For example, there are certain memecoin that has a price of 0.000000001 U.S. dollar and using only 1 U.S. dollar, you can buy millions from that memecoin supply.
Cons:-
- One of memecoin most notorious issues are it’s was really vulnerable to a rug pull. Even with a strong community, a large scale of selling activity on a certain memecoin (market manipulation) can drive a panic towards that memecoin market and it can cause a massive dump in it’s price.
- Other issues that memecoin has is it was use in a pump and dump schemes that was set by a scammer. They usually find a memecoin and them hype it up inside any social media platforms. When people start noticing and investing towards that memecoin, they will dump the price leaving people with worthless coin.
Other/Conclusion
- Memecoin can really damage the cryptocurrency market reputation by a whole. This type of crypto will make people believe that the whole of cryptocurrency is based on a jokes.
- Memecoin should have at least one proper use case in the real world or crypto market to make sure that it is become more reasonable to invest memecoin in the future.
- I do have a really strong opinions towards memecoin because I don’t think it a good investment for the long term and it doesn’t have a proper use case. The cons to invest in memecoin also outweigh the pros in investing it.
Thanks for reading and as always keep learning about crypto everyday.
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