What are Meme coins?

About Meme Coins

• These are a unique category of cryptocurrencies, have gained significant popularity in the digital currency space. These coins trace their origin to the growth of meme culture on the internet.
• These are also known as ‘memetic tokens’ or ‘community coins’, meme coins are digital currencies created as a form of satire or humorous tribute to the internet culture.
• They often feature quirky names, logos, and branding that reference popular memes, jokes, or internet phenomena.
• Key characteristics
  • These are highly volatile in nature, subject to extreme changes in value over short periods, driven by the current buzz surrounding the token.
  • They typically have a massive or uncapped supply, leading to very low values per token.
  • These coins leverage blockchain technology, often utilising smart contracts on platforms like Ethereum and Solana.
  • Creating a meme coin is relatively easy compared to traditional cryptocurrencies.
  • With the proliferation of blockchain platforms and decentralized finance (DeFi) tools, virtually anyone can launch a meme coin with minimal technical expertise and resources.
  • These coins are primarily driven by speculation and community engagement, lacking fundamental value or unique use cases. Also, the prices of meme coins can experience rapid fluctuations, making them risky investments. 

Q1) What Is Cryptocurrency?

A cryptocurrency is a digital or virtual currency secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Most cryptocurrencies exist on decentralized networks using blockchain technology—a distributed ledger enforced by a disparate network of computers.

Source: Explainer: What are meme coins and should you add them in your portfolio?