Unlike many meme coins, Shiba Inu does place a limit on how many cryptocurrency tokens can be minted — but that limit is high. The extremely high number of SHIB coins in circulation keeps its price point low, and high transaction volume makes its value extremely volatile. You should not construe any such information or other material as legal, tax, investment, financial, cybersecurity, or other advice. Nothing contained herein shall constitute a solicitation, recommendation, endorsement, or offer by Crypto.com to invest, buy, or sell any coins, tokens, or other crypto assets. Returns on the buying and selling of crypto assets may be subject to tax, including capital gains tax, in your jurisdiction.

Seth Zaraki, a longtime investor in meme coins, says the unapologetic emphasis on profit over utility is part of what he cherishes most about meme coin culture. It’s a refreshing honesty and level of self-effacement not found elsewhere in the sector, he says. Ace, who asked that his surname be withheld so he could speak about personal financial matters, has been buying and selling meme coins for years. His first was Dogecoin, the original meme crypto, launched in 2013 and popularized six years later by a now infamous Elon Musk tweet.

Is Memecoin a Good Investment?

The websites for most meme coins advertise that they are meme coins, not meant for anything other than having fun. More popular meme coins claim to have uses (called utility) and point to the fact that they are accepted by some merchants. Many meme coins can be converted to fiat currency because they are listed on a centralized exchange, and therefore have a market value. The people most deeply steeped in meme coin trading tend to top bitcoin price predictions share the belief that investors don’t need to be coddled, wrapped in cotton wool.

Pros and Cons of Meme Coins

Instead, their value is largely driven by community sentiment and viral trends, which can sometimes lead to unexpected and substantial market momentum. In its early days, Dogecoin was mainly used for ‘tipping’, which is the practise of rewarding people on the internet for doing a good deed. Now, people buy meme coins for a variety of reasons, driven primarily by the unique blend of humour, community engagement, and the speculative opportunity they offer. Inevitably, barring regulatory crackdowns (such as Thailand’s), the crop of meme tokens looks set to expand, as the tools to make them become ever more accessible. Meme.com, for instance, is a marketplace where users can compare meme cryptocurrencies and mint their own “memetic forex crm solutions and brokerage software tokens”, whose worth will be based on the perceived value of trends or memes they represent.

1. A well-documented plan and a clear use case indicate a higher likelihood of legitimacy.
2. AMC, ExpressVPN, Tesla, and Twitch accept meme coins like Dogecoin and Shiba Inu.
3. Several mainstream businesses, however, have expressed an openness to meme coins.
4. You should not invest more than you can afford to lose and you should ensure that you fully understand the risks involved.
5. Nest Services Limited, trading as Binance, is the entity ultimately responsible for the Binance Services offered through the Platform.Trading cryptocurrencies involves significant risk and can result in the loss of your capital.

Dogecoin is among the top 10 largest cryptocurrencies available today with a market cap of slightly over $8 billion. While meme coins originated as lighthearted, humorous ventures within the cryptocurrency space, their role and significance have evolved. This lack of intrinsic value can contribute to extreme volatility, where prices can surge rapidly but also plummet just as quickly, leaving traders exposed to potential significant losses. As such, they share many traits with them, including the potential for going viral and becoming quickly outdated. So while Elon Musk (or some other celebrity) may tweet about Dogecoin and send its value soaring tomorrow, it could just as easily fade away into obscurity. While the financial risk of investing in meme coins is high, they’re still an important part of the cryptocurrency market.

How have meme tokens become so popular?

We do not include the universe of companies or financial offers that may be available to you. While the evidence appears stacked against meme coins turning into the next Dogecoin or Shiba Inu, the salivating upside and extreme “fear of missing out” were most evident during last year’s bull market hysteria. Unlike Bitcoin, which is capped at 21 million coins, meme coins often have a high or unlimited supply. Meme coins aren’t too different from this dictionary definition of a meme—they’re nothing more than cryptocurrencies that memes and internet jokes have inspired. Meme coins are a cryptocurrency genre generally advertised as having an exuberant online community supporting the currency’s development and growth.

What are the risks of buying and selling memecoins?

The creators of Dogecoin used a popular meme of a dog 11 best practices to build your financial transformation roadmap (purposely misspelled “Doge”) as the logo for their cryptocurrency. NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Our estimates are based on past market performance, and past performance is not a guarantee of future performance.

Our partners cannot pay us to guarantee favorable reviews of their products or services. The purpose of this website is solely to display information regarding the products and services available on the Crypto.com App. You may obtain access to such products and services on the Crypto.com App. To steer clear of pump and dump schemes, be wary of sudden, unexplained price surges and perform research rather than relying on hype or tips from unknown sources.