• Fri. Apr 12th, 2024
Meme coins since their introduction have been somewhat controversial.
They have had good causes, been used for rugpulls and other fraudulent activities and have selected out as one of the most fickle asset classes of the digital space.
So, we decided to take a look under the hood per memecoins.
Their use-cases vary from project-to-project.
The diehard believers in  these projects swear by their tokens, while others remain skeptical and even hostile.
Our team of experts decided to take a look at memecoins and their use-cases.
Here’s what they had to say.
 There isn’t much of a path forward for most memecoins, especially those that are capless tokens like Dogecoin. Their best use has been as an investment asset, though they’re incredibly sensitive to market volatility and full-blown collapse.
 Major retailers aren’t accepting memecoins and have little motivation to do so in the future. And, if you’re stuck paying high transaction fees and waiting several minutes every time you try to use a memecoin to pay, there’s little motivation for you to use them either.

SHAWN PLUMMER CEO The Annuity Expert

 Memecoins are more of a fun trend than useful currency, though their best use case is in the world of philanthropy. By accepting charitable donations via crypto, these organizations allow for fast, direct, and 100% anonymous payments that avoid traditional intermediaries. By reducing some of these traditional roadblocks to giving, both parties can benefit and increase contributions to the greater good. Philanthropic efforts have been adopted at the organizational level, too. One new player, Big Eyes Coin (BIG), has committed to helping manage and improve marine life health, while Shiba Inu (SHIB) is investing in dog rescue efforts.

                                                                                            Brandon Tucker, Growth lead at Solana’s Biggest Project Marinade Finance

 “Memecoins have proven time and time again over the last few years that they can be great at rallying communities and enabling people from around the world to find and participate in an online ecosystem in a fun way. They’re a fun way to get into Web3 and the barrier to entry is typically very low. Ultimately, it comes down to what the community builds on top of the meme coin and the execution of a larger ecosystem to see if it will have staying power or fade. The one to keep an eye out for right now is the Shibrarium based on the Shiba Inu token. These are still very much an experiment, but give people from all over the world the opportunity to participate in a brand-new ecosystem. As various metaverses evolve we will see memecoins used as the currency of each world. Of course, many will fail given how easy it is to launch a token, but a select few may prove to be very popular over time.”

Marie Tatibouet  CMO at Tacans Labs

 Memecoins’ greatest utility is its community. Projects like Dogecoin and Shiba Inu have managed to attract a vibrant community of celebrity and every day users. As such, they can be the perfect on-ramp point for beginners who want to get into crypto. On top of that, projects like Shiba Inu have expanded their range to provide NFTs and a DeFi platform. So not only are memecoins the perfect on-ramp point for crypto, but they can become a good on-ramper for DeFi as well. I think this is where their main utility is. They are the gateway to crypto and its various verticals.

 

Andrew Weiner  Vice President of MEXC Global

 Meme coins derive their value primarily from community belief rather than commercial demand. Some Meme coins have delivered significant returns due to their volatile pricing. 2021 could be the year of Meme coin , and MEXC first to listed many impressive projects like SHIB and DOGE. Some Meme coins generated staggering investment returns of up to 16,000% or even more.
 However, before investing in Meme coins, it is necessary for investors to conduct their own research and make decisions based on their risk tolerance. Although Meme coins are not yet widely used on the market, their increasing adoption may lead to the development of additional use cases, creating tangible commercial value over time.
 

David Waugh, Managing Editor, The Daily Economy, American Institute for Economic Research

 Memecoins exploded in popularity during the “easy money” days of zero interest rate policy and the following Covid-19 era of expansionary monetary and fiscal policies, which fueled an artificial boom in many asset classes ranging from cryptocurrencies to wine, pokemon, and baseball cards. While memecoins like Dogecoin have attracted attention due to their lighthearted nature, nothing about “memes” imbues sound monetary qualities in the underlying asset. Most memecoins score poorly compared to other serious digital assets (like bitcoin) regarding supply issuance, network security, and other monetary qualities. These characteristics fundamentally undermine the ability of memecoins to function as anything besides a cute method for speculation when governments implement expansionary monetary and fiscal programs.

David Kemmerer  Co-Founder, CEO at CoinLedger

Meme coin use

Meme coins have become popular as people see them as an opportunity for fast growth. They are a means of payment and help with market speculation, which makes their value highly volatile. You can use meme coins if you commit to keeping up with the public sentiment and contribute to shaping positive attitudes towards the meme coin, as they are greatly influenced by public statements.

For example, Mark Zuckerberg once posted a photo of pet goats whose caption was “My Goats: Max and Bitcoin,” which led to the Aqua Goat meme coin raising in value by 300%. On the other hand, Elon Muck tweeted about how he bought Dogecoin for curiosity and not as an investment and saw the collapse in DOGE’s price.

Meme coins are a currency people should use carefully. Some are short-lived, and some are long-lived. For example, there was Dogecoin from 2013 to 2014, which people barely remember, and that gutted a lot of money. Meme coins are often created after a popular meme that draws much attention. Most are scams, while others are legitimate but fail to take off, and go to zero real first, barely living up to the hype.

Do meme coins have a future?

Some meme coins grow and become a broad ecosystem and a promising investment tool, and they become even better than some cryptocurrencies. For example, Dogecoin took the market by storm and reached over $85 billion in May 2021. It has been highly successful and has a loyal and devoted community that spread the Doge manifesto. Dogecoin has become a trailblazer for meme coins.

Most meme coins barely hold intrinsic value as they offer more entertainment than usability, which makes their future a little shaky as people lose interest and move on to the next big thing in the entertainment world. However, as meme coins have a high daily trading volume of at least $1.5 billion, they probably have a future.


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Kevin Moore - E-Crypto News Editor

Kevin Moore - E-Crypto News Editor

Kevin Moore is the main author and editor for E-Crypto News.