Finding out the basic economic value of a digital asset, especially cryptocurrencies is one of the biggest challenges in finance. This has further been complicated by the recent trend of meme bitcoins. Bitcoin is highly valued due to its limited supply. 21 million of Bitcoin will ever exist due to the hard cap on minting new coins. Meanwhile, Ethereum with its introduction of smart contracts makes it very valuable because of how useful the platform is in the modern world.
Can cryptocurrency with an unlimited supply and no use case gain the much-needed value? Let’s take a critical look at the four topmost meme coins which are changing the narratives of cryptocurrency investments.
Monacoin was launched in 2013 by a developer called Mr. Watanabe who remains anonymous to date. Monacoin is an internet meme-based asset that is branded like a cat-like figure. MONA describes itself as the premier Japanese digital asset which is acceptable by online and physical stores in Japan.
With a maximum supply of 105 million, it stands out from the other memes. The coin is also approved by Japan’s Financial Service Agency. Real-world use cases, supply limits, and regulatory benefits differentiate it from other meme coins.
Billy Markus and Jackson Palmer who are software engineers developed this coin in 2013. Dogecoin was supposed to make fun of other coins that tried to challenge the supremacy of Bitcoin. A proof-of-work mechanism is used to reach consensus in this digital asset. Bitcoin SHA-256 depends on scrypt technology which is different from the Dogecoin PoW algorithm.
The native token of Dogecoin, DOGE currently has no hard cap. The one-minute block time allowed miners to mint over 10,000 new dogecoins in a minute. The community reached a consensus to release almost 5 billion coins each year.
Doge is consistently supported by Elon Musk. Dogecoin has a circulation supply of over 130 billion at this time. It is being used by new entrants into cryptocurrency.
Dogecoin is not used by any relevant crypto business. Additionally, it poses a challenge to keeping a stable price against the number of coins produced daily. The price has resumed into a ‘bubble zone’ and any further increase is based on wildly speculative predictions.
Before discussing Safemoon it is important to note that many in the community feel this is an OUTRIGHT scam – you have been warned.
John Karony launched SafeMoon in March 2021. As a DeFi token, SafeMoon is deployed by Binance Smart Chain. The project is completely operated theoretically by its community which takes a keen look at static rewards functions and locked liquidity.
The overall supply of SafeMoon is 1000 trillion with approximately all of them in circulation. However, because traders are required to pay 10% fees when they sell their tokens, through which 5% is given back as profit it looks like a Ponzi scheme.
Lark Davies and Bezinga have categorized SafeMoon as a Ponzi scheme similar to WarOnRugs, warning investors of a potential scam being pulled off by its creators. On a fairer side, the platform has over 2 million users and gives exponential profits despite being a few months old.
Hoge Finance (HOGE)
It is a counterpart of Dogecoin that adds yield farming to the world of memes. The project seeks to influence and take advantage of the Ethereum DeFi infrastructure. The meme token is HOGE that has a supply of about a trillion. The total supply decreases with time and has a ‘deflationary supply mechanism’.
Because HOGE is new to the market, it is yet to get as much attention as others listed. Its real-world use-case places it above meme coins without basics. The platform is still in the initial stages and real use in the market might be made known in a short while.
Shiba Inu (SHIB)
Shiba Inu claims they are an ‘experiment in decentralized spontaneous community building’. It is popularly regarded as the Dogecoin killer. An ecosystem of few tokens, decentralized exchange, and a fully-fledged community is part of the chain of products the team behind this platform is trying to create.
With SHIB as the native token, it is an ERC-20 token that has the Shiba Inu breed of dog as its ticker. After the success of Dogecoin, SHIB saw a considerable surge. There is a limited supply of a quadrillion. Uniswap has 50% locked up as liquidity while the remaining 50% was with Ethereum co-founder Vitalik Buterin. A recent report discloses that Buterin has burnt those assets. The Shiba Inu has Leash and Bone tokens in addition to the SHIB. SHIB supply is not sustainable like Dogecoin.
Though many experts raise concerns about meme tokens investment, they remain favorites of most investors due to their prices. However, a lack of use-case and technological breakthroughs could put them in a bad situation when the crypto market faces a major setback.