Memecoins that "parody" famous people flourished on Solana
If dogwifhat (WIF), Pepe (PEPE) and Bonk (BONK) were the focus in previous weeks, now the spotlight is on celebrity "parody" memecoins on the Solana ecosystem.
Tokens that humorously copy the names of politicians and public figures such as Andwu Tet (Andrew Tate) or Jeo Boden (Joe Biden) have been blooming in recent days.
In their early days, these memecoins surprised everyone with their spectacular price increases. In just three days, Jeo Boden has climbed to a capitalization of 49 million USD, with a galloping increase of up to 12,000%. This especially happened before Mr. Biden delivered the State of the Union Address on March 7.
Although we do not deny the huge profits that these memecoins bring, this is only a nominal number because the current liquidity is not large enough to meet the demand in the market. For example, Boden coin has about 250,000 USD in liquidity, while Danold Tromp only has 75,000 USD.
An analyst from The Block news agency commented that Solana is a cheap and user-friendly blockchain. Therefore, investing in highly speculative assets on the network is a popular strategy, especially when it costs just a few cents in gas fees.
In addition, with the rapid recovery of the current cryptocurrency market, users are constantly looking for opportunities to increase profits.
However, the market capitalization of the entire memecoin segment has decreased by more than 4% in the past 24 hours, down to 54.4 billion USD. During this time frame, the global cryptocurrency market capitalization increased by 0.7% and is consolidating at the $2.64 trillion mark.
Although born later than Bitcoin and Ethereum, Meme coins quickly created billion-dollar fevers in the cryptocurrency market, attracting a lot of attention from new investors ready for risky surfing. . Meme coin is a digital currency that follows famous trending images on social networks
1. What is meme coin?
Meme coin is a digital currency inspired by humorous images, following famous stories, phenomena, and trends popular on social networks.
Unlike Bitcoin and Ethereum, which bring technical value, a long-term strategic development foundation for the digital currency community in the future, meme coins are purely for entertainment, speculation, and hoarding.
Most Meme coins become famous thanks to the promotion of influential celebrities. Therefore, Meme coins do not really have a certain value, but it all depends on the community of Meme coin players. In particular, Meme coins are not limited in supply, while Bitcoin limits the maximum number of coins to 21 million coins.
2. Meme coins create a billion-dollar fever
According to statistics from the website coinmartketcap.com, there are currently more than 80 Meme coins and tokens being ranked and evaluated on CoinmarketCap. Among them, Dogecoin and Shiba inu coin are the two most famous Meme coins that have created recent price fevers.
Dogecoin is the first Meme coin that created a billion-dollar fever
2.1. Dogecoin
First appeared in 2013 by two engineers Jackson Palmer and Billy Markus with the purpose of "testing" the digital currencies Bitcoin and Ethereum, Dogecoin coins with dog faces quickly exploded, creating a fever. billion dollars and contributed to the rise of the Meme coin market to this day.
Thanks to billionaire Elon Musk's public support on television as well as tweets on Instagram, Dogecoin quickly reached its peak capitalization of $90 billion in January 2021. In the last quarter of 2021, Dogecoin reached about 34.1 USD with a capitalization of over 27 billion USD.
Although born late, Shiba inu coin quickly attracted potential new investors
2.2. Shiba inu coins
Officially listed on the exchange in August 2020, although it was born later than its elder brother Dogecoin, Shiba inu coin quickly exploded, reaching a record price in May 2021 when the value of Shiba inu increased by 2,000,000%. (according to CoinmarketCap) and just 6 months later, the total capitalization value of this Meme coin reached more than 20 billion USD.
Squid coin plummeted to 0 and evaporated overnight even though the previous night it reached a value of up to 2,800 USD/coin
3. Meme coin gamble
Although it started out as entertainment, according to experts, Meme coin has now gone beyond the framework of a joke, quickly attracting the attention of new investors. Meme coins play the role of attracting potential new investors, expanding the market, serving as a guide and guide for new entrants to the cryptocurrency market.
Just spend about 100 USD, you can become an investor in Meme coin, you can learn, practice and master trading operations, accumulate experience, and no longer be a newcomer on the market. digital currency market before entering other larger investment deals.
However, the digital currency market in general and Meme coin in particular is always a volatile gamble. The coin can increase 100 times in value overnight but can also hit the bottom and fall to zero immediately afterwards.
Specifically, recently in early November 2021, the Squid Meme coin based on the movie Squid Game, despite increasing more than 230,000% in just 1 week, with a value of 2,800 USD/coin, quickly plummeted to 0 USD just after a sleepy night for investors. It is worth mentioning that Meme coins that evaporate as quickly as Squid coin are not rare in today's cryptocurrency market.
Although creating billion-dollar fevers, helping many people "change their lives", along with that, the risks that Meme coin brings are extremely large. Therefore, you need to consider carefully before choosing to invest, remember to leave a safe path for yourself.
