Meme coins, or token projects tied to pop culture, are a popular part of the coin market.
Their purposes range from comedy, in the case of slap coin, to scams, like Squid coin. Doge coin DOGE-USD was a meme that started out as an internet meme.
As of May 20th, meme coins have a $18 billion market cap, according to CoinMarketCap. More than 60% of the value of doge coin comes from doge coin, while 35% are in Shiba Inu coin SHIB-USD. The value of meme coins can go up when they are listed on exchanges where buying and selling can take place among a larger pool of participants.
The value of meme coins increases when they're used or accepted as a form of payment. In 2021, the Dallas Mavericks announced that they would accept doge coin for ticket purchases. In early 2022, Tesla TSLA listed a belt buckle in its online shop, priced in doge coin. On both occasions, the meme coin experienced a significant increase in value.
A processor such as Bitpay may be enlisted to complete the purchase, as was the case for the Mavericks when a meme coin is accepted as a form of payment for a good or service.
Because of the rapid buying of a token and temporary hype, meme coins tend to carry a higher susceptibility to scam attempts.
In moments of high visibility, meme coins have seen spikes in volume, for better or worse, from a price perspective. This happened when self-proclaimed dogefather Elon Musk called doge coin a hustle during an appearance on Saturday Night Live. The meme coin has yet to recover from, as the doge coin suffered a sluggish decline in value.
The coin transaction volumes can affect the revenue of exchanges that carry the cryptocurrencies as meme coin transaction volumes rise and fall.
Doge coin was the first meme coin to be cited in an initial public offering filing with the SEC when Robinhood HOOD, a trading platform, disclosed that the growth opportunity for the company was also tied to doge coin transactions.
A large portion of the recent growth in our net revenues from transactions in Dogecoin is attributable to transactions in Doge coin, according to Robinhood's S- 1 filing. Our business, financial condition and results of operations could be adversely affected if demand for transactions in Doge coin declines and is not replaced by new demand for other cryptocurrencies available for trading on our platform. This type of token may not reach the same value or adoption as other cryptocurrencies and stable coin with the ability to showcase superior transactional efficiencies and inflows from institutional investors.
The dog is cute.
Doge coin is the bad boy of a Cryptocurrency Analyst.