The Future of the Meme Tokens | HOKK Finance

By Sara J. Wheeler 3 years ago

The meme tokens are an extremely interesting phenomenon in the crypto market. Cryptocurrencies like Dogecoin and Shiba Inu have turned early investors into millionaires in recent years. The hype about the extreme price gains was hard to believe at times. But what does the future of meme tokens look like? We give you arguments for and against the success of meme coins in the next few years.

What are meme coins and how did they come about?

The term meme token describes a cryptocurrency that was not primarily developed to create an immediate benefit or solve a problem but as a kind of “joke” for the community. The first meme token on the crypto market was Dogecoin. It appeared in December 2013 as a parody of Bitcoin. The developers originally just wanted to poke fun at the main cryptocurrency.

Dogecoin

In the last major bull market at the end of 2017 / beginning of 2018, Dogecoin had its first moment of glory. The coin made extremely high profits in a short time. The coin, which bears the Shiba Inu dog breed as a symbol, quickly achieved cult status on the internet and especially on social media. Since then, Dogecoin has consistently been in the top 20, and often in the top 10, cryptocurrencies by market capitalization.

The next big hype about meme coins arose from it in the near future. In the last 2 years, the number of meme coins on the market has exploded. A meme token called Shiba Inu, the so-called “dogecoin killer”, had an aggressive Shiba dog as its symbol and was founded in August 2020. In 2021, the SHIBA course exploded and the meme coin raced into the top 10 cryptocurrencies. During this time, numerous early investors became millionaires. But the Dogecoin was also able to make massive profits again in 2021.

Shiba Inu

In the shadow of the two big beasts, a huge market developed around meme coins, hoping to continue exploding in value in the future. While some made big profits, they failed to replicate the success of Dogecoin and Shiba Inu. 

What is the future of meme coins?

Looking at the prices of the two most popular meme coins and seeing the dwindling hype, we have to ask ourselves whether the future of meme coins is positive or negative. We present some positive and negative arguments.

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Pro meme coins: The future looks bright

  • The long-term success of the Dogecoin (existing for more than 8 years, top cryptocurrency for 5-6 years) shows that meme coins can also be successful in the long term. There is little doubt that the Shiba Inu can follow the same path in the long run. 
  • The drops in the last correction were significant, but also to be expected due to the massive price gains last summer and autumn. The drop in meme coins DOGE and SHIBA is not so massive that they disappear into oblivion. 
  • FOMO (“ fear of missing out”) is a constant among investors. At the first signs of bullish meme coins, it is very likely that a massive buying spree will be triggered again. This mechanism should not change in the next few years either. 

Going forward, if you continue to believe in meme coins, you can buy them on crypto exchanges  Binance and  Bitfinex.

Cons of Meme Coins 

  • Meme coins have been a big hype in 2021 based on constant mentions on social media and most notably the person Elon Musk who keeps mentioning meme coins DOGE and SHIBA on Twitter. This hype is now levelling off and is difficult to repeat.
  • The lack of success of other meme coins shows that the fun currencies are not a sure-fire success and should have an even harder time in the future.
  • Cryptocurrencies that are part of a blockchain network that provides actual utility (DeFi, NFTs, Metaversum) should prevail over meme coins based on short-term hype in the future.