Online communities drive popularity of meme coins
We know that cryptocurrencies have proven to be one of the fastest growing markets in recent years, with more and more entrepreneurs deciding to create a wallet and start accumulating or exchanging various assets, and although among users coins like Bitcoin and Ethereum are one of the biggest references, we cannot ignore the fact that meme coins have also gained ground and provided investors with opportunities for quick profits.
Source: Wikimedia.org.
Meme coins are cryptocurrencies that are born as a joke, as a response to a cultural reference or a well-known meme. And being the cryptocurrency market a market of digital use, it is clear that users of social networks and online communities drive the popularity of cryptocurrencies, and in this market, memes represent a way to express not only the general feeling of the market but also a marketing strategy, since many times, the funny or simple makes many people identify. And perhaps because of that, the success of cryptocurrencies such as Dogecoin and ShibaInu is due to a large community that has driven their demand.
And although they were initially seen as a fun novelty, and I include myself among those who did not see a future for them, the truth is that they have gained ground in the market in recent years and have even served as a way to attract investors to participate in the cryptocurrency market.
Source: image edited in powerpoint, original taken from openclipart.com.
One of the aspects that has been fundamental for the success of meme coins is the community that is formed behind them, which have precisely a great sense of community, since groups and channels have been created on platforms such as Discord or Reddit that have become true centers of debate and exchange of information among true devotees of this type of tokens.
These same communities play an important role in increasing demand, since many times the users themselves create viral campaigns to increase the value of a token, for example, the Tama Doge coin was characterized as a coin whose community had a rapid growth, reaching in less than a month after its launch about 50 thousand users on twitter. Not to mention Shiba Inu, another meme coin famous for having a strong online community that relentlessly promotes this token.
Screenshots taken from Tamadoge's and Shiba Inu's twitter.
Another important aspect is that some of the first to come to such projects have really succeeded, some lucky ones have bought at really low prices, and then the token becomes popular, which allows them to earn significant profits. Thus, in the minds of many remains the hope of repeating the feat.
Some celebrities have also done their part, we already know that Elon Musk has been a supporter of Dogecoin, the original meme coin, Elon's tweets in which he has mentioned this coin have generated an important reaction in the community which has caused an increase in the price and interest of this other tokens, such as Shina Inu.
But, although a meme coin can carry value if its developers remain committed and add some utility for their community, they can represent risky investments if they are only used for speculative purposes, and can be bubbles that can burst at any time.
But despite the risks, internet users' interest in memes will continue to fuel interest in these assets, so meme coins are likely to remain part of the cryptocurrency market, even for the better, as they are clear evidence of how cryptocurrencies are breaking into the traditional financial system, providing new avenues of financial freedom.
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