Is Memecoin Worth It?
Entering the crypto world has never been easier. This applies to both developers and specialists, as well as investors. If you are thinking about acquiring a crypto license in Singapore or just want to make money with crypto, it is essential to know the rules and trends of the market. Many memecoins have earned vast amounts of money since the beginning of 2024, but their low utility and high level of fraud have raised doubts about their long-term stability. In this article, we will tell you everything you need to know about these currencies.
What Is It
Meme tokens are cryptocurrencies that are associated with jokes and memes. They are created for the sake of a joke or under the influence of Internet memes. The peculiarity of meme tokens is that they live off the hype on social networks. When they are talked about and joked about a lot, the price rises sharply. Especially if celebrities or large companies join the discussion. For example, Elon Musk’s tweets have repeatedly raised the Dogecoin rate several times.
Memecoins usually have no value. And most often, token creators sell all their coins and disown the project. As a result, the coin falls almost to zero. But sometimes the coin continues to grow — if crypto investors like it, and they continue to buy it.
In 2024, there was a boom in memecoins. And this boom showed that the main thing in meme coins is the narrative. The direction that the world or the crypto community is watching. If you understand which narrative is the most popular now, you can find the future TOP memecoins.
For example, in the US, there was a squirrel blogger, an account created by Mark and Daniela Longoni. Over time, the PNUT cryptocurrency appeared on crypto exchanges, named after the Internet hero. But in October 2024, the New York State Department of Environmental Conservation (NYSDEC) seized the squirrel from the Longo family and euthanized it due to suspicion of rabies.
It was posthumously proven that these suspicions were unfounded. The news spread widely on X (Twitter), people began to buy up the PNUT token en masse, and as a result, after a few weeks, its capitalization amounted to more than $2 billion.
Does Memecoin Rise Reflect Investor Sentiment?
Some market analysts believe that the rise in memecoins is indicative of growing interest in decentralized technologies and the cryptocurrency industry as a whole.
Shitoshi Kusama, the lead developer of the world’s second-largest memecoin, who goes by the pseudonym Shiba Inu, noted that rising valuations indicate that investors are ready for a major shift as decentralized technologies enter the digital mainstream. He argues that the real power of memes lies in their “real-world impact.”
In terms of potential applications, Kusama emphasized that developments such as Shiba Inu’s fully homomorphic crypto platform with Zama.ai and an upcoming suite of payment technologies demonstrate that meme projects can deliver long-term value while remaining fully decentralized.
Indrajit Roy, co-founder of TradeX, said that the rise of memecoins is a strong indicator of the influence of narratives and marketing on the success of this expanding asset class.
“Memecoins are extremely sensitive to sentiment and trends. Their continued growth shows how communities can create noise and ripples through humor and content. Memecoins are becoming a gateway for the masses to the world of cryptocurrency,” he noted.
Is the Ongoing Fad Sustainable?
Some memecoins may provide a little utility, but many seem to be losing their massive value as quickly as they gain it, leaving many to question the sustainability of the entire ecosystem.
Roy believes that most memecoins lack strong fundamentals or specific use cases, so their popularity will only continue to grow as long as there is an overlap between the internet/social media and cryptocurrency finance. He admits that as the sector matures and projects move toward more useful solutions, perhaps memecoins will interact with other areas like GameFi.
Michael Telera, a representative of Solana-based meme coin LAIKA, says any doubts about the sustainability of the meme coin sector can be dispelled simply by looking at the amount of investment that has been poured into it over the past few years.
He believes that the value will continue to grow as more people begin to understand the unique technological and social benefits that these tokens provide, such as ease of use, application in financial systems, and the potential for familiarization with blockchain technology. He adds: “We believe that meme coins, especially in the current boom, can bring freshness to the industry by providing a simple, understandable, and accessible means.”
Memecoin Legal Issues
The cryptocurrency market is still very new, so the authorities are still learning how to work with it. This gave colossal freedom in the first stages. However, this could not last long. There is already talk about all sorts of restrictions for meme currencies. First of all, this concerns those who use memecoins to promote racist and homophobic statements and other offensive content.
Therefore, no one denies the need to regulate this segment and introduce some restrictions. They will benefit the development of all cryptocurrencies, because memecoins attract the most attention and seriously affect reputation.
Is It Worth Investing
Although memecoins are not a young cryptocurrency sector, they were only able to really “take off” in 2024. Given certain risks, these assets look like promising investment options, but only if you follow an investment strategy.
To add meme-sector tokens to your crypto portfolio, you need to study each project in detail. They differ in community, developers, and ideas. It is essential to know in advance what trends in the future can bring meme tokens back to hype and mass excitement.
Conclusion
The rise in popularity of meme coins is not only due to the narratives behind them but also to the high returns that some currencies have shown. However, the decline in interest in them sometimes happens just as quickly. At the same time, investor attention to memecoins reflects the general mood in the market and the increased interest in blockchain technology in general. So, despite possible legal issues and the apparent inflated nature of some memecoins, these currencies are still worth considering.
