Meme Tokens - Crypto Academy / S4W7 - Homework Post for @wahyunahrul
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 tokens that are made from crazy jokes that trend online. The first meme token, Dogecoin was made as a joke to mock at bitcoin, but recently, Dogecoin and other meme tokens have been used as an investment tool due to the kind of popularity it has gained. They are easily and randomly created by just anybody. The interest of investors in these coins have created a huge impact in the crypto-currency market.
Just like the real meme used on social media platforms, which are produced on a daily basis, meme tokens are also increasing in number especially in 2021. One can simply say that this type of tokens has come to stay. Investors buy these tokens and trade with them in order to make money.
One was outstanding thing about this tokens are that, they are associated with very special and important personalities called celebrities in our society. The celebrities promote these coins on the internet and other platforms available to boost their prices. This has only made the tokens more popular.
Take for instance, Elon musk has been making posts about Dogecoin which is a meme token. Anytime he makes a statement, the price fly. There is a big place for meme tokens in the crypto-currency market. It can now be seeing that with the growing impact of name tokens in the cryptocurrency market, it will be difficult to limit it before the end of the year.
2). Do you think Meme Tokens is a type of cryptocurrency that shouldn't need to be created?
Meme tokens are a type of cryptocurrency that exist in the cryptocurrency space. Despite the fact that they are randomly created and are made out of jokes, investors have found them interesting and are making use of them.
Investing in these tokens are easy and doesn't require large capital. With the digital currency system recently becoming a norm, there is need for diversification. I think the idea of creating meme tokens was a great one as people can turn jokes into money. Meme tokens has also brought about an investment opportunity for smaller investors.
Comparing trading of cryptocurrencies like Bitcoin and Ethereum with meme tokens, you will see that someone that has just $20 can buy meme tokens and HODL, but what fraction of Bitcoin can you buy with $20? The way meme tokens are trending these days, we can say that they have the support of the community.
So in conclusion, I support the creation of meme tokens. Let's give these tokens a chance and see if they will not perform well in the cryptocurrency space.
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.
Cryptocurrency trading and investment has its own benefits and downsides, whether they are meme tokens or not. But the choice of the token depends on the trader/investor. Meme coins are quite cheap to start an investment with, but sometimes the price can be a bit tricky.
Instead of trading, I'd rather invest in them. This Investment is done with an assurance that, even if prices decline, that meme token will someday be revisited and the promoters will one day make a promotional statement that will cause the price to pump. This decision is however preferential as this might not be the case for others.
Most meme tokens offer a portion of trading fee to people who hold the tokens. This is not something that should be taken for granted. Also, if you want to consider trading meme tokens, the price may not increase suddenly for selling. The trader may end up selling at a loss. But in holding the coin for a long time, prices will certainly increase in the long run.
The meme coin I would like to invest in is Hoge finance (HOGE).
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Hoge finance is an ERC 20 token created in February,2021. This token has a current price of $0.00017 which has steadily increase, compared to when it was launched newly.
HOGE did not have any value when it was launched. It later managed to be denominated but the value was very low. Currently, the coin has grown and is still growing. Half of the 1 trillion supply of HOGE tokens were burned before launch.
Screenshot from Coinmarketcap
HOGE has some attractive potentials as the token has proven to be a good investment tool. There are a lot of features to look up to which will be discussed in the next question.
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)
HOGE FINANCE
Hoge finance is a decentralized finance project built in the Ethereum network, with a meme token, HOGE. This project is community driven with an auto stake feature, that allow holders to earn as transactions occur. Hoge has a deflationary supply as tokens are burned with as time passes, reducing the total number in circulation. HOGE is a meme token created in ERC 20 standard.
Hoge finance had completed sure its certik audit. Holding the HOGE token gives the holder many benefits. First, out of the 2% transaction fee, 1% is burned and 1% would be sent to holders as interest. This redistribution is of course a gain to holders of the token. This means that your investment will increase in the long run. The greater the amount of HOGE an investor holds, the larger the stack of that investor will be during distribution.
Hoge NFT minting: This is another feature of Hoge finance. Although the project was laughed to operate as a deflationary DeFi, the founders of hoge became rather more visionary. They have enlarged their roadmap, as NFTs are now minted for holders. This feature is really not too common among meme tokens. In addition, they have sponsored some eSports and Rally racing in the platform.
There are lots of new and major developments in the platform that would prove that the token is heading far beyond being just a meme token. Delving deeper into Hoge finance, a non-profit verein DAO was developed in May, 2021 to spell out some community approved actions so the project could sign contracts and agreements with other centralized exchanges.
Hoge finance is into an initiative of non-profit partnership and also looking to explore DApp games later. The successful completion of the Certik audit has given Hoge a greater security score.
The recent Ethereum news explained the passive staking technique of rewarding HOGE holders. This technique has to do with the burning of 1% and redistribution of the other 1% of taxes on transactions. This was mentioned earlier. The news also stated that the project proves to be a good long term reward investment as the liquidity are not sucked up by the devs, but are burned completely.
HOGE rewards its holders with a staking method called "burning". Each time someone sells their HOGE stack back into the pool, 1% of said stack gets burned, while another 1% is redistributed to holders every swap, with each distributed stake being higher the more HOGE tokens the investor holds. The longer you buy and hold, the bigger your stack will be each time a sell move occurs, while the token pool gets smaller and smaller the more tokens get sold! Also, the liquidity's locked, which means the dev can't rugpull us all by sucking up all the liquidity, which verifies this isn't just a scam to make the dev money, in fact, it seems to be a good long term project, unlike many tokens that spurred up the past few weeks riding on DOGE's coattails with very little technical merit.
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HOGE has also performed satisfactorily well as it has shown a bullish trend in the past one month.
Screenshot from Coinmarketcap
According to coinmarketcap, It has a circulating supply of 404,263,745,456 tokens and is ranked #508. The token also records a current market capitalisation of $69,987,899.13. This large capitalisation places the coin in a position of great future performance.
The large volume of HOGE in circulation also shows that the token is among the most traded coins in the market. In conclusion, HOGE is a good investment. The features of the project and plans for the future will see to the growth of the coin in the long run.
Conclusion
Meme tokens are cryptocurrencies that has gained grounds in 2021 especially after Elon musk's post about Dogecoin. So many meme tokens have been created to compete with Dogecoin, and some of them are doing great. But before jumping on any investment, whether meme coins or not, there should be a proper fundamental and technical analysis done, in order not to follow the crowd and end up being swallowed up. I believe that meme tokens are full of potentials, hence, they should be given a chance. Cryptocurrencies like Bitcoin and Ethereum did not use one day or one year to build what we are seeing today. With time, meme tokens could also soar higher than expected.
Thank you so much for having me here. Thanks professor @wahyunahrul for this lesson.