Crypto Currency 102: Basic Knowledge on Meme Tokens [10% to @tron-fan-club]
Good day ladies and gents of the Tron family before I start making my debut by making NFTs, I have decided to keep sharing the little knowledge about the crypto world with the community both for those that know and those that don't know. Today I decided to touch an aspect of the crypto world that no one has decided to touch for a while. Crypto Currencies that have little or no value and started making waves a few years back which people know as Shirt Coins or Meme Tokens.
Meme Tokens are digital tokens (not coins) that were created based on internet jokes and memes. Unlike other cryptocurrencies that were created for a definite purpose (e.g Tron whose aim is to decentralize the web), meme tokens don't have a real purpose. The first meme token was Doge Coin which was launched in 2013. During the lockdown, meme tokens popularity skyrocketed and plenty people started buying and selling meme tokens both the crypto enthusiasts and the newbies who have little or no crypto knowledge.
The have no defined purpose. They weren't made to satisfy a serious issue. As I mentioned earlier, they are made out of jokes and for the moment.
The have a very large market supply. They are usually made with a very very large market supply. Unlike Bitcoin whose market supply is limited and scarce, meme tokens are usually in billions and trillions.
They are very volatile. Due to the fact that they are easily influenced by trends, tweets and the fear of missing out, their prices can moon in a couple of hours and go back to $0 in another few hours.
They are relatively cheap per unit. Due to their large supply, they are also really cheap. $2 can buy some meme tokens in millions. 1 unit could be as low as $0.00002 for example, safemoon, feg token and so on.
| Advantages | Disadvantages |
|---|---|
| They can be highly profitable. Due to their high volatility, they can go up to 1000% under 24 hours and one who was holding them in high amounts can multiply their money exponentially. | Due to the ease at which they are made, scammers can take opportunity and make tokens for scams. |
| One can start trading meme tokens with little capital compared to trading with coins like Bitcoin and Ether. | They are easily influenced by externalities like crypto influencer tweets and one can lose all their money even after making detailed analysis on the coin. |
| --- | Trading meme tokens can be very risky as I mentioned earlier. It's volatility can be good and it can also be bad. One can loose thousands of dollars in mere hours |
There are so many scams out there so endeavor to do a background check and study any meme token you want to venture into to avoid jumping in and losing. This is to avoid rug pulls.
Always keep your eyes on the market and follow trends about the token to know when to pull your money out because not all of them have long term durability.
Not all listed currencies are legit. Some people assume that if an exchange has listed a crypto currency that it is legit. This is not always true as there are scam currencies listed on UNIswap etc.
This post happens to be a teaching post and a sensitization post. Anything you want to venture into especially with your money, make sure to do your research and don't just jump in. A colleague of mine lost alot of money to the squid game token scam and I was moved to make this post. Thanks for reading and I hope you enjoyed it.
Your post is very important. I learned a lot about memo tokens. Good luck.
I have no basic idea about memo tokens. You have discussed this with us very nicely. This is a very important post. I think thank you very much.
I had no idea about memo tokens. However, after reading your post, I came to know the basic things. Thanks bro.
Here is my Twitter share. https://twitter.com/sheedygrey/status/1508115068847894533?t=sGYbHUImhFaOWYNxVLB1CQ&s=19
I didn't know such a token exists, I only know about this Doge Coin from Elon Musk when he twited about it. Once again, thanks for the analysis.