Meme Coins emerged from the depths of the Internet. They are cryptos that were initially made for fun but later took a turn towards becoming a serious asset class due to various reasons. The two poster children for these are Dogecoin (DOGE) and Shiba Inu (SHIB).
Dogecoin was created in 2013 by Billy Markus and Jackson Palmer, two software engineers at IBM and Adobe, respectively. The goal was to make a fun crypto that would distance itself from the controversial history of Bitcoin, viz. use in darknet markets, etc. They used the image of a Shiba Inu dog from the “Doge” meme as its logo – a total joke. However, in 2021, DOGE has brought a lot of folks massive returns. It has got a lot of celebrity backing, most notably from Tesla CEO Elon Musk.
Shiba Inu, on the other hand, is a newer entrant. An Ethereum-based ERC-20 token, it was created in August 2020 by an anonymous individual known as ‘Ryoshi.’ SHIB claims to be a Dogecoin killer as it trades at a much lower price while offering millions more tokens. This has led to a massive hype among many retail investors seeking the next ‘moonshot.’
The hype surrounding these coins has surged thanks to celebrity endorsements, retail investor fervor, and the general rise in popularity of cryptocurrencies. Twitter, Reddit, and other online platforms have become breeding grounds for rallies behind these tokens. Take, for example, when Elon Musk tweeted referencing DOGE, its price shot up astronomically.
However, it’s essential to underline that this world of Meme Coins can be risky. The volatility of these tokens is huge, and the price often depends on social media chatter instead of fundamental values that usually drive other investments.
Regarding their potential impact on the wider crypto market, Meme Coins attract a lot of attention and newcomers. Some believe they are an entry point, drawing the masses to the broader crypto space, spurring adoption. Yet, others argue that the volatility and potential for significant losses could lead to stricter regulations in the future.
In conclusion, while Meme Coins like Shiba Inu and Dogecoin have made a splash recently, it’s essential to approach them with caution. As with any investment, do not invest more than you can afford to lose and always do your due diligence. Happy investing!
