made on canva
I hope you are doing well in your life. I hope you are keeping your health in this pandemic as first priority. So this is my homework post for @wahyunahrul. The topic today is "MEME TOKENS". So, let's get started.
Jokes are an important part of our daily life. The lighthearted comedy to keep us going throughout the day. Comedy is an art which is as essential for a human being as any other basic necessity. Comedy has always been there since the beginning of time in some way or another and in every field of life whether political, professional or cultural. Nowadays, since the internet world is booming and everything is being digitized, so is the case with comedy. Social media serves as an important medium for the digitizing of jokes and are termed as memes now. Cryptocurrency and digital currency world is not left behind in this race and the memes or jokes have made their way through this vast world of digital finance with coins named after famous memes or comedic words. Our topic today is the same one namely "Meme Tokens". Here's a meme to gain the momentum and let us begin our most lighthearted and fun week of this season.
Why Meme Tokens could be one type of cryptocurrency that will have a big impact on the cryptocurrency market in 2021?
As we read and understood the post made by Professor @wahyanahrul, it is quite safe to say that social media serves as the burning fuel in the meme world and the boom of meme coins in the year of 2021. Personalities with huge influence and celebrities with a large fan following on social media have been a big impact in this recent growth of meme coins / tokens with Elon Musk being the first one. We all know how Dogecoin skyrocketed with a series of tweets from the world's richest man in the first half of the year. We also saw a skyrocketing price of Shiba Inu in the middle of 2021 which was created on the Ethereum blockchain purely to imitate and repeat the success of Dogecoin, with "Shiba" being a Korean word of the same breed of dog that was of the Dogecoin's dog. "Meme Tokens" may have been a big success but as of now we can't say that they are much reliable as many of them are created out of mockery and to joke about a certain trend which is then backed by influencers, celebrities and businessmen. Here are a number of tweets made by Elon Musk which caused the price of Dogecoin (created in 2013 as a joke) to skyrocket.
And now, as we look around its not even a year since the first tweet and we already are seeing a number of memecoins around us being in the market. A few of them are given below,
- Shiba Inu
- Dogelon Mars
- Hoge Finance
These coins being a few of the long list of memecoins listed on @coinmarketcap. It's October and we already are in the final half of the year 2021 having seen a boom in the establishment and development of at least a 100 more new meme cryptocurrencies. So, it is safe to say that the "Meme Tokens" already had a huge impact on the cryptocurrency market in the year 2021 and will continue to do so.
Do you think Meme Tokens is a type of cryptocurrency that shouldn't need to be created?
Memes provide a lighthearted touch to every aspect. Now, that it is in the world of digital finance I think it is quite good. Most of the meme tokens or coins as we already discussed, become popular because of the majority of social media users which are influenced by the celebrities promoting them consciously or unconsciously creating a sense of awareness among the non crypto community about this vast world of digital finance.
No matter whatever we say about the meme coins / tokens not serving the actual purposes behind digital currency, many of the people have begun investing in cryptocurrency because of them. Although it is very risky because these types of coins have no real value and are just "pump and dump schemes", because the newbies invest in it and make it pump while the early holders know this game and upon the pumping price of these type of coins they manipulate the price by selling their coins and making it dump in just a few minutes.
So, we can say that the meme tokens / coins are a good learning tool for new investors but they should be careful and not invest too much of their money in these coins as they are thousand time more riskier than any other coin. Also many people came to know about cryptocurrency because of the virtue of meme tokens / coins.
There are more benefits than demerits of meme coins and that is why I personally support the creation of them.
If you had to choose to invest or trade on Meme Tokens, which would you choose? Explain your choice in detail and provide strong evidence for your choice.
To answer the above question I would like to make clear that it depends on the investor whether he / she is investing to trade or investing to hold the coin for a specific period of time. It depend on your style and your mentality, how you interpret what.
Now, in my opinion I'm more lenient towards the investing to hold type of style in meme coins and the reason is simple as it sounds and that is the unpredictable price movements of these coins. You can invest in a project while it is pumping and you'll never know, causing you to lose your investment. As mentioned above these are mostly "pump and dump schemes", so, my type of trading style for these types of coins would be investing in them while they are at its lowest and holding it until the price appreciates.
You can invest a small amount in meme tokens and still get so many coins that if the price appreciates even a little you can make huge amounts of profit from them. But, I would like to recommend all of you to invest in meme coins; the money which you can afford to lose.
I myself have invested in Safemoon.
Safemoon in my opinion is a comparatively good project, because it has some great fundamentals being,
REFLECTION - This feature of Safemoon encourages the holders to further hold their coins by charging a fees upon every transaction and distributing 50% that fee among the holders of the coin.
LP ACQUISIIONS - The automatic liquidity pools of the coin helps in maintaining the price floor for buyers and sellers by distributing the other 50% of the deducted fee to the liquidity pools.
MANUAL BURN - Burning process of Safemoon is manual with complete transparency and with an announcement which creates the increased scarcity of the tokens circulating and hence, increase in value.
Choose a Meme Token (except Dogecoin and Shiba Inu) and do an analysis of the Meme Token with the following conditions:
If in question number 3 you choose to invest, then do a detailed fundamental analysis of the Meme Token you choose to prove that the Meme Token of your choice is a good investment tool. (Screenshot Required)
If in question number 3 you choose to trade, then do trade using a small capital or using a demo account. Show how you trade based on the information you get and explain the supporting indicators you will use. (Screenshot Required)
As I foretold my choice. I prefer to invest a little amount of money in meme coins and as I posted a picture of my investment in a meme token called "Safemoon", the question here requires a detailed fundamental analysis of the token that I have chosen.
- "Safemoon" even after the fact that it's a meme coin has very great set of fundamentals which make it a very decent project to invest in. With the above discussed features of reflection, burning and LP acquisitions it is designed to resist the selling of the token and encourage the investors to hold it and keep the price maintained or make it go up.
screenshot from safemoon.com
- With all these it has a market cap of $1,311,371,908.48 which is quite great for a project launched earlier this year. It's market rank also is very great as it stands out from thousands of other cryptocurrency project with a market rank of #210. Safemoon has a price of $0.000002222 at the time of writing.
screenshot from coinmarketcap
Safemoon holders als get a free reward everytime a transaction or trade is made that deducts 10% as fee and distribute half of it to the holders of the token and half of them goes to the liquidity pools
Safemoon's features makes it somewhat immune to whales driving the price up and down because the main purpose of creating the coin is to drive the price up and it's a community focused, fair launched De-fi token.
screenshot from safemoon.com
Well, today's lesson was fun and interesting and we got a chance to know much about the meme tokens and coins and the cryptocurrecy jokes. But, it is not limited to just jokes and comedy when it comes to finance. People are making money and investing money in these so called jokes now and are taking it quite seriously.
We also got to know much about other meme coin projects that are not just created out of mockery and to ridicule something but are actually quite good and decent on their own.
That was all for today. Thank you for reading through.