The Role Of Memes In The Crypto Market

Most people in the Crypto market have a negative view of Meme projects in the Crypto market because they are often labeled “born for hype”. However, these projects have become an indispensable part of many people’s investment portfolios. Let’s join Weakhand to learn about the role of Meme in the Crypto market.

A few other experiences that people may need in their investment process:

• 7 Steps to Complete Fundamental Analysis of a Crypto Project
• What Should You Do When Crypto “Peaks”?
• How to Take Profits in the Crypto Market?

Meme Overview

What is the Meme Project?

Meme projects are created for the purpose of not contributing any value to the Crypto market but often follow trends on social networks or a certain celebrity. The most typical example is probably the Dog and Cat Meme coin trend following the terrible growth of Dogecoin in early 2021 such as Shiba Inu, Floki Inu,…

After such trends, in addition to some projects that have developed very large communities such as Shiba Inu, they will develop other products such as DEX, NFT, Layer 2,… most of the remaining projects will stopped working for a certain reason, mostly because the development team did not have enough vision.

Meme projects are usually divided into 2 types:

• Meme coin making project.
• Meme NFT making project.

Identifying characteristics of Meme projects

For Meme coin projects, the easiest identifying feature is probably a price line that grows hundreds or even thousands of times from zero. The community of these projects is also extremely Fomo and always There is always a belief in a huge growth rate in the future.

The initial release form of Meme coin is often Fair launch, which means directly distributing tokens to the community without having to go through a previous capital call. Normally, the release form of Meme coin projects will be airdrop, which makes it easier for the project to reach the community.

When it comes to NFTs, we often think of vivid photos with many different artistic colors, but NFT Memes are not like that, they often have strange artistic colors or rather, weird. Holding these NFTs does not bring too many benefits to everyone, but Meme sets still have a large fan base.

History of Formation and Development of Meme

History of formation and development of Meme coin

The first meme coin to be born and the most successful in history is Dogecoin with the first block completed on December 6, 2013. Dogecoin is a joke by two founders Jackson Palmer and Billy Markus as it only took them about 3 hours to create it, but it accidentally attracted a large amount of community support and continues to operate. until now.

The dog image in Dogecoin’s logo at that time was also a quite famous meme on the Internet. In addition, Dogecoin is essentially no different from Bitcoin as Jackson Palmer and Billy Markus just need to copy the source and edit the BTC characters into DOGE.

It was not until the 2020s that Meme coin had new waves, starting with the Food coin trend on Ethereum. Projects will be named after a famous dish such as SushiSwap, PancakeSwap, Kimchi Finance…

The most prosperous period was the beginning of the uptrend in 2021 with the dog and cat meme coin trend, starting with the richest billionaire in the world at that time, Elon Musk, continuously shilling Dogecoin and promising to integrate DOGE. as Tesla’s payment method. There have been many different projects following this trend such as Shiba Inu, Floki Inu, Baby Doge,… but only a few projects are active until now.

Meme coins after 2021 will become an indispensable part of the Crypto market with many different trends such as:

• Meme coin burning supply: Safe moon, Safe mars,…
• Green frog coin meme: PEPE, BOB,…
• Constitution coin meme: ConstitutionDAO.
• BRC-20: ORDI, BTCs, rats, cats,…

The Evolution of NFT Memes

The first NFT Meme set was born in 2017 with the name EtherRock, as the name implies, this collection includes 100 unique stones released on Ethereum. They have no other use than buying and selling, but as of now, NFTs are still being traded for prices up to hundreds of ETH.

Some later NFT projects like Milady Maker also accidentally became NFT Memes when the author designed lo-fi anime with quirky fashion styles. The Milady Maker collection became famous after billionaire Elon Musk posted a photo expressing his love for this NFT in May 2023.

Famous Meme Trends

Dog and cat meme coin trend

This trend started with billionaire Elon Musk constantly shilling about Dogecoin on his Twitter account and promising to integrate DOGE into the payment network of electric car company Tesla. This constant mention has caused the price of DOGE to grow more than 30,000% in just a short period of time.

Cat and dog Meme coin projects were also continuously launched at that time and attracted a large number of the Fomo community. One of the most successful projects in this cat and dog Meme coin trend is Shiba Inu with a peak market capitalization of up to $41B.

Meme coin trend burns supply

The start of this trend is SafeMoon, which was born right after the dog and cat meme coin trend with a very unique mechanism. When a SAFEMOON token swap transaction takes place, the owner of the transaction will be charged a fee of 10% of the total transaction volume, this fee will be used as follows:

• 5% is used for distribution to all SAFEMOON token holders.
• 5% will be sent to the burn wallet address on the BNB Chain network to reduce circulating supply.

The online mechanism brings many benefits to SAFEMOON token holders in advance as they will receive a large amount of free tokens, the higher the transaction volume, the more tokens will be received. In addition, it also causes the token supply to decrease rapidly, making SAFEMOON more scarce.

However, the above model only really works at the beginning when people just know about it and continuously Fomo. In the long run, when the number of people trading tokens decreases, the number of tokens that holders will receive will not be many anymore, losing the holding value of SAFEMOON.

Meme coin trend BRC-20

BRC-20 is a protocol that allows anyone to create 4-digit tokens on the Bitcoin Ordinals network. Due to technical difficulties, most tokens created on this network do not bring any value to the holders.

Although born late, it has a head start on the Bitcoin network, which has the largest cash flow and community in the Crypto market at the present time, so BRC-20 continues to grow strongly with a number of names. like ORDI, SATS,…

The Role Of Memes In The Crypto Market

A very clear story about Meme coin is that it is one of the best tools to attract new people to the Crypto market. To buy and hold a Meme coin, one does not need to have too much knowledge about basic analysis.

The story of a Meme coin attracting new people is also very simple, just buy and hold to make huge profits. And when a large number of new people join Crypto, a huge flow of new money will also be poured into the market easily.

The most typical example is probably the fact that many people invest in Crypto just because Elon Musk publicly supported Dogecoin with the promise of integration into the payment system, not valuable coins. different from BTC or ETH.

In addition, Meme coins also unintentionally contribute a large part in guiding new people to use tools in the market such as how to create a wallet, what coins to use as fees, where to buy and sell, etc. .. or even a way to convert from fiat to Crypto.

Summary

Above is an overview of Meme trends as well as the role of Memes in the Crypto market. Hopefully, through this article, Weakhand has brought everyone useful knowledge to serve the investment process. private.