For instance, look at the incredible way in which Dogecoin has grown in both value and popularity. The coin was launched in 2013 to mock Bitcoin and offer a fun way of introducing people to the crypto sector, and its value has since grown by over 14,000%. At the time, the crypto sector was under a lot of suspicions, but Dogecoin saturated the mood by showing that crypto doesn’t need to be too serious.
Despite launching as a joke, meme coins have become viable investments to many traders. Apart from Dogecoin, other popular meme coins are Shiba Inu, Safemoon, and MonaCoin.
Why People Still Invest in Meme Coins
Investing in meme coins is more like gambling, given that the majority of them do not have any actual use cases. However, unlike most cryptocurrencies, meme coins are very cheap. Taking Shiba Inu, for example, the token costs around $0.000006. With very little, you can buy more of the coin and gain much when the value appreciates.
The other reason why investing in meme coins is a viable choice is because they are highly profitable when you buy and sell them at the right time. Recently, Glauber Contessoto came into the limelight to become a Dogecoin millionaire. Contessoto invested early in Dogecoin and was among the lucky investors who stood to gain immensely from the 14,000% price hike.
People also invest in meme coins because of the hype surrounding them. These coins not only use memes to bring out the humor but also use influencers who play a huge role in value pumping.
Elon Musk, the Tesla CEO, has been famed for being an agile supporter of meme coins. Musk is known for supporting Dogecoin and other meme coins such as SHIB and Baby Doge. Musk has a significant effect on the prices of these meme coins, given that each time he tweets about them, their values appreciate.
Support from such influential figures could be why meme coins are still viable investments despite launching as a joke. It could also be the reason why coins such as Dogecoin are popular among millennials.
Furthermore, some of these coins are upgrading their models to scalable blockchain protocols, which could further add to why people will continue jumping in to purchase. But, it does beg the question – are investors still investing because they don’t actually get the joke?