A significant problem in nowadays’ finance is discovering the fundamental economic value of digital assets, particularly crypto.
The recent trend of meme-coins only made the situation more complicated.
For multiple investors, Bitcoin gets its value from being a limited supply currency. A large cap on “minting” new BTC translates to the fact that only 21 million coins will ever exist in total.
However, you may wonder how a cryptocurrency would have an unlimited or immense supply and no actual use increase in value?
Memecoins are a bit of an oddball, so let’s see our top picks.
Shiba Inu (SHIB)
Shiba Inu was developed as somewhat of a Dogecoin Killer, and it is an “experiment in decentralized spontaneous community building.”
SHIB is an ERC-20 token that relies on the Shiba Inu race as its ticker.
It recently recorded a massive increase following the success of Dogecoin.
It has a limited supply of 1 quadrillion, but half of that is locked as liquidity to Uniswap, while the other half is bagged by Vitalik Buterin, the Ethereum co-founder.
SHIB tokens are unsustainable, therefore, so you should consider if they are truly worth risking your money.
SafeMoon was introduced in March 2021 by John Karony, and it is a DeFi token deployed on Binance Smart Chain. It focuses on locked liquidity and static reward functions, which sound good on paper.
A particular feature that SafeMoon has in its protocol is that it demotes selling native tokens labelled as SAFEMOON.
The whole supply of SAFEMOON is 1000 trillion, and almost all of that is in circulation.
However, the project is a bit of a Ponzi scheme as the traders must pay a 10% fee when they sell their tokens, and only 5% goes back to the token holders.
Some say that it’s a Ponzi scheme; others call it a potential rug pull scam.
On the plus side, SafeMoon has over 2 million users though it is only two months old, and it granted multiple people exponential returns on investments.
You should thoroughly consider avoiding any possible rug scam if you are planning to invest in SafeMoon.
Dogecoin was created by software engineers Billy Markus and Jackson Palmer in 2013. It was meant to put a laugh on some investor’s faces after seeing how thousands of alternative coins are trying hard to end the dominance of Bitcoin.
Doge works on a proof-of-work mechanism to obtain consensus within the network. It heavily relies on Scrypt technology.
Dogecoin does not have a hard cap, and its 100 Bn coins were all mined in 2015 thanks to its very short (one minute) block time.
From that point, the community decided to issue some 5 billion coins yearly.
DOGE received constant support from Elon Musk, initially via memes, and ulteriorly with the acceptance of the coin as a means of payment in Space X.
Many new users got involved in the world of Crypto with Doge as their first coin.
It’s tough to keep a stable price against the number of coins pushed out daily.
Also, DOGE isn’t the core of any significant crypto project.
It is widely believed that the price reached a bubble zone, and any extra increase is somewhat speculative.
Hoge is a DeFi relative of DOGE that combines memes with yield farming.
HOGE has a max supply of one trillion. It works on a deflationary supply mechanism, meaning that the overall supply will decrease with time.
Though HOGE is new to the community and hasn’t yet gotten any significant attention, its real-world market use case puts it somewhat above the many meme coins without any basis.
It may be one of the smartest bets of all meme coins. However, the project is still in its young days, and its potential could unravel soon.
MonaCoin is another meme based crypto associated with a cat-like figure introduced by Mr Watanabe, an anonymous developer who is still unknown to date.
The token markets itself as the first Japanese digital currency. It has a total supply of 105 million, which entirely differentiates it from all meme tokens we just talked about.
Additionally, MONA is approved by Japan’s Financial Service Agency.
Though MONA is often labelled as a meme coin, some details set it apart from them, like real-world usage, price, and regulatory benefits.
Henry Lares is still early into his career as tech reporter but has already had his work published in many major publications including Tech Crunch and the Huffington Post. In regards to academics, Henry earned an engineering degree from Apex Technical School. Henry has a passion for emerging technology and covers upcoming products and breakthroughs in science and tech.