Meme Coins have taken the cryptocurrency market by storm in 2021. They’re popping up all over social media, making their way into your newsfeeds — and there’s no sign of it slowing down!
A big reason for this craze? Well, some say Elon Musk has his finger on the pulse when he promotes Dogecoin, the crypto industry’s first notable meme coin. Others argue that meme cryptos have become popular largely thanks to the impact of influencers who can get paid just for sharing hype-riddled information about them online. There are no doubt a whole array of reasons related to their success, and interest within them will not fade away anytime soon.
Today is the day of investing in the meme, a concept that has turned the process of global financial investments on its head because individuals are not necessarily investing in anything that actually provides real-world technical or procedural value, but something that is cool, entertaining, and trendy. Even professional investors who know better cannot resist and are getting in on the action as there are no doubt gains to be made, which can be seen from the substantial rise of such assets over the last year.
Two of the most popular meme coins in the cryptocurrency space at the moment are Dogecoin and its Ethereum based counterpart SHIBA INU, both of which have taken dog based meme characters to new levels making the animated face of the Shiba Inu breed of canine an image familiar to most in the crypto space.
Their rise has undoubtedly created much wealth for traders and holders alike and is heavily linked to the spread of hype from crypto influencers, enthusiasts and celebrities, most famously Ellon Musk, who hyped DOGE to the extent where it hit an unthinkable all-time high of $0.7376 at its peak. However, at the same time, the volatile nature of the cryptocurrency market has led many inexperienced traders and those with weak hands to lose substantial amounts of money when investing in such crypto assets where they have been persuaded by the hype to buy at highs and then subsequently sell at lows due to fear of market crashes. This has created an element of resentment for the very influencers, celebrities and enthusiasts that are hyping them, making the meme crypto-economy especially volatile and uncertain.
Regardless of where you stand and your opinion about meme crypto assets, the opportunities that lie within them could be huge in the future. This perception has led many to invest, not for any particular reason related to their underlying technology or functional value but being part of them the ride. The question is, how long can the hype last and will these meme coins survive in the long term?
In the cryptocurrency market, anything is possible, so we can not rule that out. However, if such assets continue to receive more sustained marketing and hype, their potential to rise to new heights is endless. The main thing to consider would be to invest with caution, don’t put all your eggs in one basket and don’t buy into the FOMO. The opportunity for meme crypto assets could be huge, but they are subject to the same speculation and volatility as any other cryptocurrencies. We can only wait and see what happens with them in the future!
This is not investment advice. This article has been written to discuss the rise of meme crypto-assets and to outline the main driving forces behind their popularity. Cryptocurrencies have come a long way since their inception; however, they are still risky and volatile assets, so much caution must be exercised when investing.
About Master Ventures
Master Ventures is a blockchain-focused venture studio helping to build the next generation of blockchain-based Web 3.0 system innovations within the crypto industry. Launched in 2018 by Founder and CEO Kyle Chassé, the company’s ethos can best be summarized in the acronym #BeBOLD: Benevolent, Open, Love, Decentralized.
Master Ventures co-creates with entrepreneurs and businesses worldwide to turn the best ideas into innovative and disruptive products. They do this by investing as strategic partners through offering advisory services to the projects they believe in. To date, Master Ventures has invested in over 40 crypto projects, including the likes of Kraken, Coinbase, Bitfinex, Reef, DAO Maker, Mantra DAO, Thorchain, and Elrond.
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