Pepe, Dogwifhat, Popcat, Boden, Tremp, etc. what comes to your mind when you think of these Solana-based cryptocurrencies? Are they truly groundbreaking, or the epitome of a shitcoin?
In retrospect, I certainly underestimated the potential of meme coins. I used to think to myself, why would anyone invest in a cryptocurrency that offers no innovation, and is nothing but a copycat with a cute logo?
At the time, I did not consider that most people make their trading decisions based on emotion rather that logic, and meme coins offer what a lot of people are looking for - a community that they can belong to.
The Community Factor
One of the most important factors behind a cryptocurrency's long-term success is the strength of its community, and meme coins are a rapidly emerging online cultural movement.
Innovative or not, if you can get a group of people to rally behind a new coin, and connect with it on an emotional level, the network effect starts to gain significant momentum.
Reactions To Real-World Events
We have also seen in recent weeks that you can bet on real-world events using these meme coins.
For example, you can see below that Trump-themed meme coins spiked in value after the recent failed assassination attempt.
Also, when Biden's handlers told him to endorse Kamala Harris via X, the value of the $KAMA meme coin surged as well.
It will be interesting to see how other meme coins react to future events.
Community vs. Utility
Are these meme coins worth investing in for the long-haul? Or will they eventually be replaced by tokens that actually have real-world utility, like those that can be used to pay for ride sharing services, wireless access, or compute power?
One thing we can certainly learn from the recent meme coin frenzy is that community is a major factor in a cryptocurrency's success, and should always be a well thought out component of any project.
If you found this article interesting, be sure to check out my other posts on crypto and finance here on the HIVE blockchain. You can also follow me on InLeo for more frequent updates.
Until next time...
Resources
Dogecoin Logo Image [1]
Tremp Meme Coin Price Chart [2]
Kama Meme Coin Price Chart [3]