If you are new in crypto world, you may heard of Meme Coin. A lot of people have invested in Meme coin. There are also people who become Millionaire investing in Meme Coin.
What Are Meme Coins?
According to Binance Academy, Meme coins are cryptocurrencies inspired by memes or jokes on the Internet and social media. In short, Meme coins is a cryptocurrencies created as a joke on the internet.
Meme coin tend to be highly volatile in price. Unlike Bitcoin or Ethereum, Meme coin price swing can be very volatile. Meme coins are mainly community driven, with strong community support, they can gain popularity very fast. Just take the example of Dogecoin in 2020 and Shiba Inu on 2021.
Meme coin also have a very large supply. As an example, Dogecoin have unlimited supply with current circulation about 100 Billions coin, while Shiba Inu have 1 Quadrillion coin.
Why People Tend to Invest in Meme Coin?
Due to their very large supply, the price of their coins too is very small. Take Example of Shiba Inu price when it launched was at $0.0000000001, that’s a lot of Zero there. With that price, you can buy millions, if not billions of coin with a small investment.
For a normal people like me, who don’t have a lot of money to be invested. With Meme Coin, there is an opportunity for me to be involved in Crypto. If you invested only $10, you can get millions of the coin.
To be able to invest in Bitcoin, I need to fork $40k to $50k of fiat money to be able to buy 1 whole coins. And with a small swing of price, that’s not very attractive to small time investor like me.
Another reason is that, the potential of these Meme coins to increase in price is massive. If they have a burning mechanism in place, sooner or later, the amount of coins will decrease and the price will eventually increase. People on the mainstream sees Meme coins as a joke, but for normal everyday people, this is how they can take an advantage in a growing crypto industries.
Meme coins is not really just a joke. There are legit Meme coins with use case utility. Just like Shiba Inu, news says they are going into gaming. There are also others like Dogezilla Coin with a use case utility.
How about you, what makes you wanted to invest in these Meme Coins?