Memecoins: Hyped Scams vs. Top Cryptomemes of the Year
Date: 2023-12-28 Author: Dima Zakharov Categories: IN WORLD
The Pepe Explosion
In April 2023, the crypto market witnessed a monumental shift with the emergence of Pepe, the frog token. This marked the beginning of the memecoin epidemic, often dismissed by snobbish investors as "junk coins." Memecoins, inspired by pop culture icons, make up a minuscule fraction of the crypto market, accounting for just 1.8% of crypto transactions by the end of autumn. While some memecoins remain relatively stable, most behave like one-day wonders. However, it's undeniable that you can make a profit from them if you're seeking those "hundreds and thousands of gains."
The Doge Phenomenon
The Shiba Inu dog breed captured the hearts of crypto enthusiasts as early as 2013, paving the way for Dogecoin's success. From December 2013 to December 2023, DOGE's value surged from $0.00008547 to $0.10, reaching a peak of $0.70. Despite their creation, Dogecoin's founders, Billy Markus and Jackson Palmer, received minimal benefits from their invention. Markus purchased a used Honda Civic with his DOGE, highlighting the importance of not just creating a successful meme but leveraging it effectively.
The Rise of Shiba Inu
In 2020, Shiba Inu coin joined the canine-themed coin family. Since its official launch in August 2020, over a quadrillion SHIB tokens were released. The anonymous creator, known as RYOSHI, did not hold any tokens, leveling the playing field for all SHIB buyers. For eight months, SHIB remained relatively dormant, but everything changed in March 2021 when Elon Musk tweeted about Shiba Inu. Within five days, SHIB's price skyrocketed by 2000%, eventually reaching a market capitalization of $10 billion.
The Pepe Era
Pepe, the green frog, had a tumultuous history. Initially beloved by American far-right groups, it re-emerged in April 2023 as the most popular memecoin. Surprisingly, the artist behind Pepe received no financial gain from the PEPE cryptocurrency's hysteria. Within three weeks of its launch, PEPE's market capitalization reached $1 billion, and its value increased by over 10,000% in just over a month.
The Memecoin Madness
Pepe's success unleashed a wave of memecoins in the crypto market. Following Pepe, coins like LADYS gained notoriety due to another Elon Musk tweet. LADYS, an anime-avatar collection, experienced a meteoric rise, with an initial price of $0.0000000037604 per token and a peak value of $0.00000012, yielding a 3091-fold capital growth.
Elon Musk's tweets have a history of influencing cryptocurrencies, with 37% of American investors making decisions based on his Twitter activity. In the summer of 2023, meme tokens on the Base blockchain, a second-layer solution for Ethereum by Coinbase, also experienced rapid price surges. Tokens like BALD and BASED witnessed astonishing gains, but their values were short-lived.
As 2023 comes to a close, memecoins continue to captivate the crypto world. Tokens like LINDA have seen overnight gains of 8000%, while Bitcoin ETF Token raised $3.4 million in its presale.
The memecoin frenzy persists, promising both astronomical gains and the inherent volatility of the crypto market. Investors must navigate these turbulent waters carefully, separating the gems from the scams.
