A memecoin is a cryptocurrency based on a popular meme. Rather than utility, they are based on a specific trend in popular culture and depend on the viral nature of the meme to get popular.
Origin
Memecoins originated from the first era of Blockchain (the first Bitcoin cycle) when Dogecoin was created (in Dec. 2013) as a joke.
These coins saw their initial growth phase during the 2017-18 bull run. Dogecoin and Shiba Inu saw phenomenal growth in this phase. Further, there were several other memecoins that were created in these years that later became large projects such as BONK.
The explosion of the mature phase came around the 2024 bull run when thousands of memecoins were launched, and each of them gave hundreds to thousands of percent in returns.
Why Are Memecoins Popular?
The two major reasons behind the popularity of memecoins are their appeal (pop culture) and the hope they show of multi-bagger returns once their price hits a certain level, say $1.
Other minor reasons can include scarcity economics, marketing, uniqueness, market trends, etc.
Relation to Popular Culture
Most of the top memecoins are popular because they represent a particular meme trend. Dogecoin and Shiba Inu both repeated a trend called the “Shiba Inu dog meme.”
The repeated exposure to a meme allowed potential users to develop familiarity with these coins.
Return Potential
This is the most important reason why memecoins become popular. After the success of Bitcoin, every investor sought to repeat its success with a coin that has zero to hero potential. Meme coins excelled at appealing to investors, and the lack of serious utility coins helped propel them to greater heights.
Major Memecoins
Dogecoin
Dogecoin was the first memecoin and is the largest one in current markets. It was created by engineers Bill Markus and Jackson Palmer, who created it as a joke to prove that anyone can create any cryptocurrency and sell it for billions.
Their estimates were true since Dogecoin provided no real utility except acting as a medium of exchange. To their and everyone’s surprise, the joke based on a famous dog meme (and hence the name Dogecoin) was a great success.
This success was much due to the need for an efficient monetary system and not because of a trend. This was proven by the success of Litecoin and Ripple, both of which followed a similar approach without the “fun part,” as Elon Musk would say.
Shiba Inu
Shiba Inu tried to repeat the success of Dogecoin by hitching a ride on Ethereum. Rather than creating its own Blockchain like Dogecoin, it was launched on Ethereum, a general-purpose but smart contracts-enabled Blockchain launched in 2015 by Vitalik Buterin.
The success of Shiba Inu was because of a crucial shift in the crypto markets. With the immense success of Bitcoin and Ethereum, people began looking for cryptocurrencies for a huge 100x or 1000x potential, in short, a “get rich quick” coin. Since Shiba Inu had a very low launch price ($0.000000000056), users assumed they could become millionaires or billionaires if it reached $1. This is the reason why the question of Shiba Inu reaching 1 dollar or 1 cent props again and again in the markets.
Frequently Asked Questions
What is the utility of memecoins?
Though some memecoins have utility, most of them rely on meme trends to get popular. Among those that have some utility, Dogecoin acts as a faster proof of work Blockchain than Bitcoin for money transfer, and Shiba Inu has a Layer-2 Blockchain with Dapps and DeFi utility.
What is the best way to earn in memecoins?
Several memecoins have quests that allow users to earn in those memecoins. An example is the launch of DOGS, which had a tap-to-earn game, and those who played it got DOGS tokens airdropped to them.
