PMF IAS Current Affairs
PMF IAS Current Affairs
  • Context (BS): Meme coins, a unique category of cryptocurrencies, have gained significant popularity in the digital currency space.
  • Also known as ‘memetic tokens’ or ‘community coins’, meme coins are digital currencies created as a form of satire or humorous tribute to the internet culture.
  • These coins trace their origin to the growth of meme culture on the internet.
  • They often feature quirky names, logos, and branding that reference popular memes, jokes, or internet phenomena.
  • Unlike traditional cryptocurrencies such as Bitcoin or Ethereum, meme coins are characterised by their lighthearted and often comedic nature, designed to go viral and be shared widely.
  • Popular meme coins: Dogecoin, Shiba Inu, Bonk, Pepe, Floki etc.

Key Characteristics of Meme Coins

  • Meme coins are subject to extreme changes in value over short periods, driven by the current buzz surrounding the token, making them risky investments.
  • They typically have a massive or uncapped supply, leading to very low values per token.
  • These coins leverage blockchain technology, often utilising smart contracts on platforms like Ethereum and Solana.
  • Creating a meme coin is relatively easy compared to traditional cryptocurrencies.
  • With the proliferation of blockchain platforms and decentralized finance (DeFi) tools, virtually anyone can launch a meme coin with minimal technical expertise and resources.

Pros and Cons of Meme Coins

Pros Cons
  • Fun asset type to use to learn about cryptocurrency and blockchain technology.
  • Possibility of earning a profit if values rise.
  • Potential participation in an active investing and trading community.
  • High risk and volatility.
  • Accusations of being pump-and-dump scams.
  • May be technologically complex for some users.
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