What are meme currencies … and what are their risks?

It has spread recently, and in light of the expanded handling of digitally coded coins, what are known as “M” coins. But what are those coins? Do they have certain risks that traders should avoid and how did these currencies first appear?

In the following report, we examine the most important information about meme coins, how they are traded and the most famous of them.

Meme coins mostly do not contain any real or visible value, and on the contrary are mostly useless or meaningless to trade.

These coins are often topics for “memes” on the Internet or those jokes and comic images that are widely spread on social networking sites.

Memes have the advantage of being able to gain immense popularity in a short period of time, usually as a result of promotion by individual influencers and online investors.

One of the most famous examples is the Dogecoin coin, which Elon Musk, owner of Tesla Electric Cars and SpaceX for space projects, promoted in a Twitter post through his Twitter account.

According to the Binance platform, meme currencies accounted for 2.8% of the cryptocurrency market value in June 2021, reaching more than $ 38 billion. But the disadvantage of these currencies is the high price volatility.

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Meme currencies emerged strongly, in 2021, as this year saw a significant increase in the prices of these currencies, in addition to being able to achieve a large spread in terms of value and diversity, following the success of the Dogecoin currency project. and in light of the growing level of acceptance of digital currencies in general.

On the other hand, launching a cryptocurrency has become easy and practically feasible since the launch of Dogecoin in 2013.

It has also become available to everyone to issue cryptocurrencies against the backdrop of certain events, trends or even rumors.

For example, in May 2021, Mark Zuckerberg, CEO of Meta, who owns Facebook and Instagram, posted a photo of his pet goat.

Soon the cryptocurrency “Aqua Jot” was launched and its value increased by 300% within a few hours of posting on social networks.

Also, when Elon Musk wrote on Twitter that if there was to be a scandal about him, he had to invent “Elongate”, he released the “Elon Gate” code on a cryptocurrency within a few hours.

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My currencies are one of the types of digital currencies, but there is a big difference between them and other digital currencies like Bitcoin or Ethereum, for example, in terms of the extent to which the return on investment is achieved.

Given that the goal of some digital currencies, such as Bitcoin, for example, is to avoid the defects of the world banking system and achieve a kind of revolution in the world of internet in general.

These intentions made the well-known cryptocurrency widely accepted by traders of all kinds, especially since these currencies have already created a new form of decentralization and have revolutionized the digital world.

But on the other hand, meme currencies do not actually serve any real purpose, as the launch of most of them was only to achieve a quick profit, or what might be known as “speculation”, but in the world of digital currencies coded.

Dogecoin can be purchased through a range of crypto platforms, including Coinbase, Binance and Kraken.

Shiba Inu can also be traded on Binance, Crypto and QCoin platforms, as well as decentralized or “DEX” exchanges such as Uniswap.

Often times, memes are provided for free or at very low prices when released to achieve the greatest possible expansion and extension.

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A number of situations showed the risks of trading meme currencies, as trading in these currencies has risks and negatives that can not be ignored.

The Thai regulator, for example, has ordered exchanges to remove memes from the list in 2021, along with “NFT” tokens and fan coins.

Also, the “Squid Game” coin which was launched after the Korean series of the same name gained great fame, when two friends decided to launch it and after their profits reached more than 4 million dollars, decided to run away and disappear. .

Also, relying on crypto-influencers to get the next currency is an unsustainable project and cannot be trusted.

With the exception of good regulatory measures like what happened in Thailand, meme currencies are ready to expand more and more, as the tools that make them more accessible are more accessible than ever.

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According to the Binance cryptocurrency and cryptocurrency exchange, there are more than 80 meme coins listed on the Coinmarket price collector, but not all of them are popular or have been successful.

The Dogecoin meme, which was based on the image of a dog, is one of the most popular memes, such as Shipu Inu, which is built into a private blockchain.