Meme Tokens - Crypto Academy / S4W7 - Homework Post for @wahyunahrul
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Why Meme Tokens could be one type of cryptocurrency that will have a big impact on the cryptocurrency market in 2021?
Interestingly, the evolution of cryptocurrency after the invention of Bitcoin has been very crazy that today we have tokens or coins developed out of jokes or some social media buzz. Meme coins simply are coins inspired by jokes or social media buzz without any specific use or goal and are very volatile.
After the success of Dogecoin earlier this year, we have seen many new meme tokens spring up with fascinating stories and financial performance. On coinmarketcap, there are about 128 meme token right now with Dogecoin which is currently ranked 9th among all cryptos and Shiba Inu ranking 20th as leaders.
Meme coins have soared in value and variety in 2021. Following the popularity of Dogecoin and the growing acceptance of cryptocurrency in general, the market for meme currencies is rising. Their prominence is partly due to their ties with celebrities and social media influencers. Because these individuals are paid to promote the coins, public interest in them is rapidly growing. Many people credit Elon Musk, who is a big proponent of DOGE, for the rise of meme coins.
Because they rely on some popularity and buzz from the internet, once they gain the attention of market traders they make very huge and significant leap in price and performance. Shiba Inu, for example, increased by 230 percent in seven days after the sale of 6.3 trillion Shib tokens in the first two days of October. I believe looking at how profitable some of these coins are, they will continue to grow and be attractive for investors.
Lets look at some statistics of Meme tokens on CoinmarketCap.
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With a Market cap of $44,562,586,091 and with over $3.3 billion tradng volumes, I believe Meme tokens are gaining some significance in the crypto space. Also, their leaders Dogecoin and Shiba Inu rank 9th and 20th among all cryptos currently and that tells you how they really gaining significance and impacting the entire crypto space.
Do you think Meme Tokens is a type of cryptocurrency that shouldn't need to be created?
The idea of creating a cryptocurrency inspired by a joke or social media buzz in itself is funny for me. This is to mean that in most cases, the developer has no use case or future plans or goals for the project and that is a serious problem because it will eventually turn out to be a shit coin and investors will suffer. Apart from the very few meme tokens that have made some wonderful strides and successes, the many others are still struggling to gain grounds in the crypto space.
However, some investors do not investigate projects and some also some just join in a current craze in the market and invest in a trending coin like meme tokens. Again, meme tokens like Doge coins popularity introduced people into the cryptocurrency space and others have profited from investing in them.
In the nut shell, I wouldn't say meme tokens should not be created but I will say developers should at least come up with some use case and futuristic goals for the token. If you want to invest here be very careful and don't get caught up in FOMO as most of these tokens generate profits for the early adopters.
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.
@wahyunahrul, this is something I wasn't sure I will be doing soon because of its own risk but interestingly I'm beginning to have second thoughts about them. A number of them have began to gain my interest aside the leaders Doge coin and Shiba Inu, I will invest in Samoyedcoin.
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Samoyedcoin is ranked 454 on coinmarketcap and among the top 10 meme tokens currently. Samoyedcoin ($SAMO) happens to be Solana meme coin and the goal is to help grow the Solana network. Despite it was originally created as a meme coin it is now more linked to the Solana ecosystem making it more reliable. This coin is available on top exchanges like Birtue, Orca and Raydium.
With a maximum supply of $SAMO14,000,000,000 and a current market circulation of $SAMO 2.78 billion, the Samoyedcoin at least has a maximum supply limit unlike the many other meme coin who do not have a maximum supply limit.
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The project also has a roadmap, and since the creation of the coin, new projects and development has been done on the project. Per the road map, the last bit of development is to happed in the last quarter of this year where they will collaborate with Solanart to introduce $SAMO NFT with a buyback and burn mechanism. After, the project continue to exist as a community driven coin to bring fun and awareness to the Solana ecosystem.
Also, after reviewing the financial metrics of this coin, I feel it won't be a bad idea to invest here. Below are some details from Coinmarketcap.
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With a Market Cap of $88,310,039; Volume24h $6,748,253; Circulating Supply of 2.73B SAMO. Again the price is $0.0326 which is not expensive as compared with others. The price is also volatile with a 24h low of 0.0257 and 24h high 0.03291 which is a 16.86 increase in 24hrs making it suitable for trading.
I believe with all these basic analysis and understanding of the project, the Samoyedcoin is more than a meme token and with links with the Solana ecosystem, it has potential to do very well and is probably not a shit coin.
Choose a Meme Token (except Dogecoin and Shiba Inu) and do an analysis of the Meme Token
Fundamental analysis of the Samoyed coin
Like earlier highlighted, data available on Samoyedcoin from Coinmarketcap indicates that among all cryptocurrencies, it ranks #454 and among the top 10 meme tokens.
See details below.
Below are some more details from Coingecko.
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Samoyedcoin has quiet a number on social media with over 24k followers on Twitter and 4k users on Telegram.
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My reason for investing in this coin is how it is linked with the Solana ecosystem and in fact has been tagged as ambassador of the Solana network. Again, it is one meme token with use and also futuristic goals making it unique from the others.
Furthermore, when you watch the data from Coingecko in the screenshots above, you see that the current price today is 4081% increase of the all time low price of this coin recorded in April, which is some 6 months ago and the performance has been good so far. For these reasons, I believe spending some dollars to buy and hold this coin for a long term will generate some cool profit in the future.
Conclusion
Meme tokens are created for the fun side of it usually inspired by jokes or social media craze. Despite, they have been identified as risky assets to invest in, a careful analysis and conscious risk taking into investing in these tokens can land you huge profits. They are very volatile and can hit abnormal highs in no time.
After what happened to Dogecoin we have seen a lot of meme tokens spring up and are gaining so much popularity in the crypto space lately. I believe this trend will continue and some more will come up in the future but hey, take the risk sometimes and try some of these tokens but hey again, don't get caught in FOMO.
Thanks for reading and big salute to @wahyunahrul for tis wonderful lecture.
Regards
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Peace & Love!
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