There is no doubt that the era of cryptocurrency has opened doors to a whole new generation of technologies that will inevitably change the world forever.
Smart contracts, payment solutions, oracles, privacy, video platforms, and blockchain-powered social media- all of which are just the tip of the iceberg of the new potentials that crypto is going to bring.
However, there is another sector in the crypto space that has recently been attracting attention for no valid reason. I'm of course talking about "meme coins". Crypto projects that have nothing to offer except for "fun" and "joke" were able to climb to the Top-50 crypto rankings. If we take Shiba or Safemoon, for example, those two "shit" coins ridiculously pulled more than 100X within a very short time making many crypto veterans scratching their heads.
This begs a very interesting question:
Why are so many people piling into these meme coins like nobody's business?
While it's very difficult to determine how other people think, my humble opinion is that the main reason for buying the likes of Shiba, safemoon, etc is a combination of pure greed and ignorance. There are some naive traders who look ate Safemoon's price and say:
"Wow, if I invest a few dollars into this coin and the price goes up to one dollar, I'll simply become a multi-millionaire!!"
source These false hopes mainly come from a misunderstanding of the relationship between the market cap, circulation supply, and the dollar value of a cryptocurrency.
For instance, Safemoon has around 600 trillion in circulation. That means for Safemoom to reach the $1 level, it would require people to invest more than 10 times the amount of money that exists on the whole planet.
See how ridiculous that wet dream is?
Most meme coins have similar massive circulation supplies which means none will reach that $1 legendary level especially given the fact that there is almost no real use case for any of them.
In my book, there is one reason for these coins to exist and that is to enrich their creators at the expense of inexperienced and new investors.
What really adds fuel to the fire is the existence of some cult-like figures who find pleasure riding these crazy waves and promoting their favorite meme coins.
Yes, Elon Musk seems to be insisting not only to send rockets to space but also to send Dogecoin to the moon. His stormy tweets about Doge encouraged some other big influencers (players, singers, YouTubers) to join the party and promote their own favorite meme coins which created further hype out of nowhere.
And speaking of Dogecoin, let me say that as much as I like this coin as a joke, I cannot overlook the serious risks involved in investing in it. Besides the fact that it has more than 130 billion in circulation, there is one Doge whale that holds about 28% of it and the top top-100 addresses hold more than 70% of the entire circulation supply. Keep in mind that once those addresses start dumping, it's GAME OVER for Doge no matter how bullish Elon's tweets are.
sourceGood and Evil...?
Would we be in a better place were it not for meme coins?
Well, there is no denying that meme coins have attracted new and fresh investors to the crypto space, but I personally reckon that the damage they will make is bigger than any potential benefits.
Before you start criticizing me, let's take a second to think about the endgame of those countless meme coins. There is no way to believe that the hype Elon Musk along with others have created will stay forever, meaning that the fate of all these coins is mostly going to be an inevitable fall.
In my humble opinion, this pump&dump scenario will arouse hardcore regulators that will not miss jumping at the chance to discredit Bitcoin and the wider crypto space as a whole and warn people from being "scammed".
If most meme coins really collapsed to zero, I wonder how the news media would cover that. Sure there would be some sane people out there trying to show the real potentials that crypto can bring and the wide difference between Ethereum and Doge, but I wonder if the media would really be interested in pointing that out. After all, it's a lot easier to ignore the real stories and promote clickbaity headlines instead. And if there was a lesson to learn from the recent crash is that despite how far crypto has come, there are still too many people that would like to see it fail...
What do you guys think?
I'm keen to know your opinions on "the revolution of meme coins"...
PS, Unless otherwise stated, all images in this post are either my own design or from free photo-sharing sites (e.g. pixabay.com)
Posted Using LeoFinance Beta
Your content has been voted as a part of Encouragement program. Keep up the good work!
Use Ecency daily to boost your growth on platform!
Support Ecency
Vote for Proposal
Delegate HP and earn more
Thanks for the support :))
Nice Post ❤️❤️❤️❤️❤️
Thanks for stopping by :)