Meme Tokens - Crypto Academy / S4W7 - Homework Post for @wahyunahrul
Hello Everyone...
Today I'm going to present the task given by Professor @wahyunahrul, it's a hot topic in Cryptocurrency and interesting to discuss.
Happy Reading..!
1. Why Meme Tokens could be one type of cryptocurrency that will have a big impact on the cryptocurrency market in 2021?
Meme tokens are one kind of cryptocurrency which is become popular as it influenced by celebrities and it promoted throughout online media and become hot news as it gains unexpectedly growth, and most of all many people loved it. Unlike Bitcoin and Ethereum, meme coin was created just as a joke and to make quick money. The first meme coin was Dogecoin which was invented by Jackson Plamer, marketing at Adobe in 2013, and become more popular as supported by influencers and celebrities such as Elon Musk who has supported Dogecoin as Twitter shown below.
Public interest in this coin was more increasing rapidly. Dogecoin will be one of the many cryptocurrencies that will replace the conventional financial transaction system referring to the peer-to-peer way of working and will belong to many people. Elon Musk himself has tweeted about the Dogecoin project which will be used as a transaction tool in each of his projects, he has also offered to purchase Tesla units using Dogecoin.
Why Meme Tokens are so Popular and Affect the Market.
The success of Dogecoin is then followed by other meme tokens such as Shiba Inu, Dogelon Mars, Hoge Finance, Safemoon, etc. As stated in EuropeanBusinessReview, the increasing acceptance of crypto in general, make the crypto asset trading market begin to be flooded and each token inspired by other memes. Their popularity is largely due to posts made by social media influencers and celebrities. As more public figures popularize the meme token through their social media, the public's interest in this token is increasing rapidly.
The first time launched, the meme tokens of Dogecoin caused a stir in the digital community. Especially, when famous people like Elon Musk spoke up on Twitter about Dogecoin, and the price has jumped unexpectedly and impacted the market volatile and kept fluctuating. Despite this unusual origin story, exploding in popularity in 2021, Meme tokens especially Dogecoin have become the fourth-largest cryptocurrency by market cap. According to CoinMarketCap that Dogecoin currency has increased from over US$1 billion in early January to US$47 billion in May.
Meme tokens such as Dogecoin is not like Bitcoin and are more similar to DASH or Bitcoin Cash, in which its intended use is an expensive currency, not a long-term investment. Besides, the value per coin of Dogecoin has been very low, at around US$0.003 per coin in 2020, so people are more likely to stick with it. Users of social media platforms, such as Reddit, Twitter, Facebook, and others can use Dogecoin to give reward, or tip, people who post certain content.
Here is below some of Meme Tokens besides Dogecoin and Shiba Inu:
- Monacoin (Mona)
Monacoin is the dominant blockchain-based cryptocurrency in Japan. One of the reasons why this technology has become a trend is because it is accepted in Japan as a means of payment. Blockchain allows transactions to be processed faster than blockchain, giving it an edge in the market. MONA is supported on major cryptocurrency exchanges such as Bittrex, making it easily accessible to those looking to purchase tokens. Like most of the meme coins on this list, MONA is also very affordable due to its low price, making it ideal for those trading on a tight budget
- Hoge Finance (Hoge)
Hoge finance was first launched with a supply of 1,000,000,000,000 coins, with over 500 billion of them having been permanently burned. Just like other meme tokens, HOGE Finance is powered up by DeFi, which is decentralized finance for short. It was started up by the community, for the community which expectedly it will quickly grow fast, with the most important names backing up the project such as Hogeman, Joe Rocko, Florin Podaru, Hunter Williams, and Andreea Mocanu.
- SafeMoon
SafeMoon is such a good investment as it is suitable for those on a low budget as the value is very low. SafeMoon is a meme coin whose main competitors are other meme cryptocurrencies like Dogecoin and Shiba Inu. One of the reasons why SafeMoon is popular today is because SafeMoon is already available on crypto exchanges like Binance and Coinbase. However, Safemoon is not like other cryptocurrencies where day traders can buy and sell as they please, investors who buy Safemoon are advised to hold on to the tokens as it is the only way they can avoid paying the high fees that are deducted from the transaction.
2. Do you think Meme Tokens is a type of cryptocurrency that shouldn't need to be created?
Since the meme tokens are rapidly increased or decreased based on momentum online from influenced celebrities, I think, it’s very legit for meme tokens to be created. Meme tokens with a cheaper price could be affordable to the small investor to be transacted in the market, as it will make the market more liquid. Besides, meme tokens were made not intended to be a serious long-term payment instrument, like Bitcoin. But the ultimate success of meme tokens hinges on the strength of their community, and the influencer culture will not go away.
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)
The meme tokens that I choose to invest in is Dogelan Mars (Elon). Dogelon Mars is a blending of Dogecoin, the investor of Dogecoin and fan Elon Musk, who is the founder of Tesla. He has a big influence on the growth of Dogecoin promotion. Dogelan Mars is one of the meme tokens which was once created as a joke token and was created on the Ethereum blockchain last April 2021 with a maximum supply is one quadrillion (1,000,000,000,000,000) token.
The Dogelon mars coin is the next dog-themed token, after the Shiba Inu. Due to partnerships with some major companies and Dogelon Mars' social acceptance, seems the future of Dogelon Mars looks very bright. Many cryptocurrency experts believe that the price of Dogelon Mars will rise sharply in the future, that is why this token is worthed to be invested in.
Looking at the spike of Dogelon Mars, recently, it has been in third place, in the Top Meme Tokens in CoinMarketCap under Dogecoin and Shiba Inu. During the last seven days, Dogelon Mars token has up to 83.41% in value and over 14.38% in the last 24 hours. The cheap price also becomes the consideration of the traders to invest in and hold the Elon token.
The evaluation of the Dogelon Mars token can also be shown in the form of tabular data as follows:
| No | Categories | Value | Description |
|---|---|---|---|
| 1 | Rank | 261 | Under Dogecoin and Shiba Inu |
| 2 | Current Price | 0.0000004899 | |
| 3 | Market Cap | $268,842,145 (9.91%) | The total market value of the Elon coin in the market is up to 9.91% |
| 4 | Fully Diluted Market Cap | $489,856,815 (9.91%) | Maximum supply in circulation up to 9.91% |
| 5 | Volume (24h) | $70,472,088 | A measure of how much Elon coin was graded in 24 hours |
| 6 | Circulating Supply | 548,817.81B Elon | The amount of Elon coins that are circulating in the market |
• If in question number 4 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)
I analyzed Dogelon Mars (Elon) by using Tradingview, and using Stochastic and Moving Average indicator to support the analysis price token. Stochastic is one of the leading indicators which is used to perform the buy and sell signals through two intersecting lines. Since stochastic is the momentum indicator, it shows the last closing trading price which calculates the difference between the lowest and highest prices. While Moving Average is an indicator that calculates the average price in a certain period, then connects it in the form of a line. As a screenshot picture below, is shown the market condition in a Bullish position which marked by the two lines of stochastic, and the line of MA in uptrend position. So I decided to place the entry of BUY position.
I made a buy entry at $0.00000046, with a take profit level at $0.00000050 and a stop loss at $0.00000039. Both stochastic and MA indicators showed a Bullish position by the proximity of the price, I remain open Buy positions with short stop-loss levels.
Meme tokens are one of the most popular cryptocurrency investments on the market nowadays. One of the reasons why Meme tokens have grown in popularity recently is the support they have garnered from the crypto community, with investors like Elon Musk demonstrating that Meme tokens are a worthy investment. Meme token has in fact been able to increase its value and popularity in the crypto asset trading market. However, one thing to keep in mind is, as beginner traders, should be considered to be more careful whenever making a cryptocurrency asset investment decision, especially in Meme tokens, as It is not recommended to put all the money in it as it’s a very volatile market and when the price is dropping drastically, big losses will be unavoidable.
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