Meme Tokens - Crypto Academy / S4W7 - Homework Post for @wahyunahrul

They are some form of cryptocurrencies that are created through the inspiration of jokes from the internet and social media.

Some examples of meme tokens are: Dogecoin (DOGE), Shiba Inu (SHIB), Dogelon Mars (Elon), MonaCoin (MONA) and etc.

The first of its kind is the Dogecoin which was created in 2013 by Billy Markus and Jackson Palmer as a yardstick to the popularity and dominance of cryptocurrencies more especially Bitcoin of which many people were ignorant about but yet still made investment in them during that era.

The Dogecoin token was created from the popular meme of 2013 without any reasonable purpose but to serve as a mockery tool in the crypto universe.
Although they may be considered as jokes but they also play a key role just like the normal cryptocurrencies by making transactions through peer-to-peer and on a blockchain network.

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1). Why Meme Tokens could be one type of cryptocurrency that will have a big impact on the cryptocurrency market in 2021?

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Meme Tokens as cryptocurrencies have already done wonders at the early stage of this year (2021) in the crypto market and they still posses the tendency to add more impact at the latter part of the year.

Meme tokens could be one type of cryptocurrencies that will have a big impact on the 2021 crypto market due to the expansion of their uses and with help of their advertisement on the internet and social media platforms by prominent and most influential people.

Their usages have a key role to play on their impact in the 2021 crypto market because most of the meme tokens have stretched their purpose from being a mere joke to something better in terms of making transactions and swapping them with other cryptocurrencies.

Such useful meme tokens are; Dogecoin, Shiba Inu and the MonaCoin which has been approved by the Japan government.

A well renowned and technology guru known as Elon Musk have made several positive tweets about one of these meme tokens (Dogecoin) in this year which has led to its increase in demand, supply and value.

Dogecoin rose 682%, from $0.0078 on 27 January to $0.0610 on 29 January just because of a Dogue magazine cover he posted.

Also on 15th May there was an increase of 523.61% ($0.1224 - $0.7630) in just 23 days period and this was because most people were curious about the token and wondered why such prominent person will make a tweet about the token.

Dogecoin has been a stepping stone to the success of many meme tokens such as Shiba Inu, Dogelon Mars (Elon), MonaCoin and etc of which all of them have made an impact and keep on progressing in the 2021 cryto market in terms of rank, marketcap, supply, price, uses and etc.

There has been an increase of meme tokens investors and traders in 2021 due to the aforementioned factors which gives a sign that many people have developed preference for meme tokens and this increase would create a big impact in the cryptocurrency market in terms of their demand, supply and value.

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The rapid increase of demand, supply and value of the first meme token (Dogecoin) has raised a positive signal in the cryto atmosphere about meme tokens of which traders and investors are putting in much effort to make gains from.

In simple terms, meme tokens have already made an impact and they have the tendency of making an additional big impact in the cryto market in 2021 due to their usages and the hype given to them on the internet and social media by celebrities and most influential people such as Elon Musk and etc. which has led to their high demand, supply and value.

The rank of some of the meme tokens in 2021 such as Dogecoin (9), SHIBA INU (20), Dogelon (246) have overtaken most of the normal cryptocurrencies and that alone is a big sign or impact.

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2). Do you think Meme Tokens is a type of cryptocurrency that shouldn't need to be created?

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Honestly I don't have much problems with the creation or emergence of the meme tokens. I only have issues with the major reason behind the creation of the first meme token (Dogecoin) which served as a mockery tool to Bitcoin's success.

I think there is (was) the need to create meme tokens because most of them are useful in terms of staking for rewards, swapping for other tokens and they also make positive contributions in the cryto market at least there are meme lovers who can purchase or invest in these tokens but they should be created with much reasonable purposes unlike that of the Dogecoin.

Meme tokens have brought about a variety of cryptocurrencies which is a good thing because the choice to trade or invest in cryptocurrencies has been expanded.

Investors and traders with less capital can go in for such tokens since most of them requires less capital to start with due to their low prices.

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3). 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.

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If I am to choose to either invest ot trade on meme tokens I will simply go for trade.

This is because I don't have any tangible reason about meme tokens that will push me to invest in them.
Most of them have unlimited supply and extreme volatile level like that of the Dogecoin and Dogelon Mars (Elon) which can lead to huge loss assets and most of them are created without a specific purpose.

Their success mostly rely on social media trends of which I consider to be less reliable. For example, a single tweet from Elon Musk brought about a massive price increament of Dogecoin which has the tendency to go vice versa if there is a negative tweet about a particular meme token by an influential person.

Meme tokens are created on the basis of jokes and entertainment of which I don't do jokes and entertainment when it comes to investment.

Since they are created on the basis of jokes and entertainment, they have a higher probability to be pump and dump which can contribute to massive loss of assets of which I will try my possible best to avoid at all cost.

Although meme tokens such as Dogecoin, SHIBA INU, Dogelon Mars, Monacoin and etc. are somehow doing great in the crypto market but to invest in them is a no no for me and that decision is based on my personal interest although some people may have interest in them.

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4). 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)

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source

I chose Dogelon Mars (Elon) which was created by Elon Musk with the aim to help people reach the Mars together with him and to relieve them from scam tokens and I decided to open a Buy position (Dogelon/Tether) on tradingview paper trading.

More details of the token

This is because Dogelon Mars has experienced an increase in price since the 10th of this month such that it reached an overbought of 90 on the 19th and it is currently around an overbought of 79 as displayed on the RSI Indicator. There has been a gradual price reversal which is a sign to place a Sell Order in order not to make a loss.

I attached the RSI Indicator because it is a leading indicator and it provides signals of overbought (70-100) and oversold (30-00).
This Indicator helps to determine possible price reversals.
To me it has low tendency of divergences and it helps me to anticipate in the market.

All the unsourced screenshots were taken from Elon Must official Tweeter page, coinmarketcap.com and tradingview.com

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Conclusion

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I am glad I made it to this class because I have gained new ideas concerning the types of cryptocurrencies that exist in the crypto world.

Dogecoin Is the father of all meme tokens of which most of them have no specific purpose but have the potential to increase in value just like the normal cryptocurrencies.
Therefore the decision to either trade or invest in them is left to the individual.

We can't always be serious in life sometimes we need some jokes to cool our nerves off and I think that is the role most the meme tokens are playing in the crypto market.


Thank you and stay safe.