Memecoins have an important role to play in crypto.

Memecoins Have An Important Role To Play In Crypto.


Memecoins are often seen as a joke, meant to simply disappear. But what if they are critical to crypto? Traditional finance is laughed at, but memecoin investors can pioneer new financing strategies. Success stories abound – $1,000 in Dogecoin (DOGE) turned into $2 million, Shiba Inu (SHIB) turned small investments into life-changing sums. Are these investors fools or do they see real opportunities?

In the year By 2024, the memecoin market is one of the fastest growing sectors in the space.

High-performing memecoins have averaged returns of over 1,300% in 2024. One trader made an incredible $1.2 million profit in just a few days trading MAGA, Pepe (PEPE) and other popular memes.

Related: Are 78% of Market Makers Using New Crypto Listings?

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These investors aren't just throwing money around to remember — they're using social media and community engagement to drive demand and increase value.

Memecoins vs traditional finance

Memecoins are all about efficiency and innovation – attributes traditionally lacking in finance. Decentralized and community-driven, unlike the slow, bureaucratic legacy financial systems, they move quickly. With constant change, what can traditional finance learn?

Legacy institutions are slow and inflexible, while memecoins thrive on rapid adaptation. If traditional finance does not evolve, it risks becoming obsolete. The extraordinary success of Memecoins offers important lessons for conventional systems.

The rush to make a quick profit

Memecoins attracts people by attracting quick profits. Take Hamster Kombat, which is a hit with gamers and has grown a ton of ecosystem. The mix of strategy, combat and cute hamsters will appeal to non-crypto fans.

Investors see both joys and dangers. Keith Gill, aka “Roaring Kitty,” sparked outrage on Reddit by revealing GameStop's massive investments. Despite regulatory oversight, it turned $116 million into $54 million per session.

Fear of missing out or FOMO drives many memecoin investments. This psychological trigger combines market volatility and investor behavior to make memecoins irresistible.

Celebrities Endorse Memecoins: Genuine Endorsement or Scam?

Celebrity endorsements can boost memecoin values, but is it real or a scam? DJT token based on the Solana (SOL) blockchain has seen a sharp increase in value following rumors of ties to the Trump family. The token's price has jumped around 180% since its initial valuation. And even though the token started to decline, one whale made a profit of $3.7 million after selling their MAGA (TRUMP) tokens.

While Bored Up Yacht Club is on the wane, celebrities like Caitlyn Jenner and Elon Musk are driving memecoins that are creating dynamic market changes.

Related: Roaring Kitty's GameStop game is a marketing threat.

Jenner's coin, which launched on May 26, reached $43 million in market capitalization before the decline. Part of the proceeds now support former President Donald Trump's re-election campaign. Iggy Azalea is also joining the memecoin trend. (Why not when it's so hot?)

Despite these activities, memecoins account for less than 5% of the crypto market, with celebrity-backed tokens accounting for a smaller share. Investors should proceed with caution as celebrity involvement can be more of a personal gain than a genuine investment.

Notecoin and Hamster Kombat are more than inspiring.

Web3 clicker games are booming this year. NotCoin has 40 million players on Telegram, and the token has grown almost 250%. Memecoins have stolen the spotlight this Bitcoin half-cycle, and are offering participants unparalleled opportunities.

Hamster Kombat recently surpassed Notcoin, claiming over 150 million users and 31 million daily active users – an impressive growth. (Of course, the figures don't account for potential bot activity or duplicate accounts.)

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Daily active users of Hamster Kombat. Source: CoinMarketCap

However, there is still an issue as the continuous movement is not certain. Experts argue that these games may struggle for a long time due to issues of proper token use.

Crypto fans are more optimistic. Hamster Kombat's success shows the potential of blockchain games and the Ton platform. It sets a promising precedent for blockchain games.

Memecoins ultimately matter.

Memecoins stress test blockchain technology, reflect market sentiment and build active communities beyond the general crypto population. Acting as an indicator of broader market trends, they ensure technology reliability and scalability.

Over the past 90 days, memecoins have been a highlight in the crypto market. Take the “Hawk Tuah” on the Solana blockchain – from Tim and DTV's amazing road interview to the digital asset event. They've become serious market buzz, proving memecoins can influence the digital economy beyond their playful (and silly) origins.

Hawk Tuah Coin shows how viral content drives crypto success by building community and investment. It traded well at $0.007825 with a market value of $310.8 million. Recent data highlights dramatic price increases, capturing the volatile nature of meme-based cryptocurrencies.

Memecoin financial health

The framework for evaluating memecoins can be visualized in a simple chart, categorizing their social and financial health into five main areas.

High Risk: Low liquidity and volume and fraud-prone tokens High coins with social and financial support Sleeping giants: Formerly popular but now quiet tokens, often managed by DAOs.

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Meme Coin Financial Health Chart. Source: Andrew Hong

These categories help to interpret the life cycles of memecoins along with their risks. Despite their potential to reshape societies and drive innovation, they face ethical problems such as market manipulation.

One thing is clear: Memecoins are here to stay and will continue to reshape the financial landscape. Far from betraying what crypto stands for, they are a center of innovation and disruption. Memecoins dare blockchain technologies to be strong enough to withstand new challenges. They are financial instruments shaped by culture, society and social media. They also gave ordinary people who would not otherwise have had access to the market the chance to win extraordinary amounts of money, despite the obvious risk involved.

Memecoins are going to continue to disrupt traditional finance. They are a reflection of how innovation can change everything and how curious financial experiments can resonate with other forms of art.

Konstantin Kogan is the co-founder of BullPerks and GamesPad, a partner of BitBull Capital, a co-founder of Advivo, a partner of TDVC, CEO of TDX and former CEO of Wave Financial. Ph.D. He holds a master's degree in sociology, education from the National Pedagogical Dragomanov University in Kyiv, and is fluent in five languages ​​(English, Russian, Ukrainian, French, and Hebrew). He has been an enthusiast and investor in blockchain technology since 2012.

This article is not intended for general information purposes and should not be construed as legal or investment advice. The views, ideas and opinions expressed herein are solely those of the author and do not necessarily represent the views and opinions of Cointelegraph.

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