What Are Meme Coins & How Do They Work

A meme is defined as a new video, image, or text made with a slight alteration that has turned it into something funnier than the original. Memes become popular online when internet users share them through various social networks. Meme coins are much the same but in a very different format. Let’s look at what they are, how they work, and how you can use them.

What Is A Meme Coin?

A meme coin is a cryptocurrency that happens to be a gag. Some have become very popular soon after release where they gain value and attract celebrity endorsements. This momentum usually spells success for the meme coin creators. Although there are meme coins that have achieved multi-billion dollar market caps, which would bring massive legitimacy to the average cryptocurrency, meme coins generally have little or no value. There are exceptions, but few. Click here to learn more about the best meme coins.

Essentially, cryptocurrency investors would buy meme coins not to build their portfolio, but for entertainment value instead. Although they are designed to function as any other cryptocurrency, meme coins are more of a novelty than anything else. They are humorous digital coins that appear in response to a funny concept or viral moment. These factors impact the lifespan and value of a meme coin.

Dogecoin, The Original Meme Coin

Dogecoin (DOGE) hit the cryptocurrency world in 2013. It was branded around the Shiba Inu “doge” dog and founded by the software engineering team of Billy Markus and Jackson Palmer. The joke behind Dogecoin was that it poked fun at Bitcoin (BTC) and rather than naming their meme coin “dogcoin,” the pair purposely misspelled the name of their coin which helps sell the joke. 

However, the joke caught momentum and by May 2021, Dogecoin reached a market cap of $88 billion. This was largely due to the endorsement of the meme coin from Elon Musk. Dogecoin no longer has that support and, like all other meme coins that lose their celebrity connection, has come crashing down to about a tenth of what it once was valued at.

Other Meme Coins

Meme coins have come and gone since the introduction of Dogecoin. Roughly 200 different meme coins have entered the cryptocurrency world but few have been as popular as Dogecoin. One, Shiba Inu (SHIB) was launched in 2021 and promoted as the Dogecoin killer and pokes fun at the original meme coin by featuring the same dog in its branding. Shiba Inu gained popularity quickly and hit a market cap in October 2021 of $41 billion but has since tumbled down to less than half of that.

Meme Coins Are Easy To Create

Meme coins are not difficult to get into the crypto market. That is mostly because blockchain technology is built on an open-source concept that provides meme coin creators with an easy path to creation. All they have to do is access an existing cryptocurrency and fork it. That means simply copying and pasting the underlying blockchain, making minimal alterations to the new coin so that it is different from the original and you have a meme coin. Ideally, those alterations would be to the coin name or branding that pokes fun at the original.

Can You Gamble With Meme Coins

The answer to that question is yes and no. It’s a little complex but let’s simplify that for you. First, not all online casinos that accept cryptocurrency will accept meme coins. The online gambling sites that do, may only accept selected meme coins. The guideline that most crypto casinos follow is that they will gladly accept the top 10 or so market cap meme coins. This is not a bad thing as there are many other benefits found at crypto casinos.

For example, many online casinos accept Dogecoin. Bitcoin, Litecoin, and Ethereum are standard crypto coins gamblers can use at online casinos, but those are not meme coins. Shiba Inu is starting to be accepted at more online cryptocurrency casinos as it has climbed the list of market cap meme coins. If you use crypto for gambling, it is wise to stick to the top crypto coins. 

Pros and Cons To Gambling With Meme Coins

There are a few benefits and disadvantages to betting with meme coins. On the plus side, many online gambling sites accept them, they are affordable to purchase, they function like any other cryptocurrency, and for many online gamblers, meme coins add some fun and personality to your gaming experience.

On the other side of the (meme) coin, there are a couple of negatives. The biggest one is that unless you have the most popular meme coins in your wallet, you may not be able to gamble at several online casinos. They typically accept just the top meme coins according to market cap figures. Another negative is that they are extremely volatile which can change their value quicker than you can hit the spin button on your favorite slot.

Are Meme Coins A Good Investment?

One significant difference between meme coins and other cryptocurrencies is their issuance volume. For example, Bitcoin has a 21 million coin cap. Dogecoin has well over 135.5 billion meme coins in circulation. This means meme coins have either a high or unlimited supply. Also, meme coins don’t normally have ways to remove coins out of circulation which means that often there is far more supply than the demand. It is because of this that most meme coins disappear to never be seen again. As an investment opportunity, buying meme coins is quite honestly a gamble where the return will most likely be less than you invested. 

Final Thoughts

Meme coins are a form of cryptocurrency that pokes fun at other, legitimate crypto coins. Although meme coins were originally novelty crypto coins, several of them have gained heights of popularity that have given them a level of legitimacy. Many online casinos accept cryptocurrencies and it is not uncommon to see some meme coins on that list. While you may not get rich as an investor of meme coins, you still stand a chance at winning some decent jackpots using them at online casinos.

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