Coin Meme hits the market as the price war intensifies
Coin memes and dog-themed tokens are becoming increasingly popular and attractive as the long-term upward trend seems very limited.
These coins are an integral part of the ongoing bull run in the crypto market. Among the myriad of tokens flooding the market, Dogecoin (DOGE) and Shiba Inu (SHIB) have grown in prominence and have become the most popular.
Most recently, SHIB began a rally from $ 0.000028 on October 23rd to an all-time high (ATH) of $ 0.000086 on October 28th. Nevertheless, SHIB has posted an increase of 195.5% and a breathtaking increase of 72,954.679 percent compared to the previous year in the last 30 days.
This caused SHIB to quickly move into the top 8 by market cap, but the drop in prices has caused it to slip out of the top 10 at press time with a market cap of around $ 32 billion.
With returns like this, investing in SHIB becomes the “biggest trade of all time”. A wallet address that bought SHIB $ 3,500 in August 2020 is now worth more than $ 1.55 billion as SHIB hits ATH. Another wallet owns 13% of the total supply with more than 549 trillion SHIB at one point in time. However, this whale wallet moved forty trillion, one hundred thousand SHIBs (40,000,000,100,000) to four different wallet addresses, each transaction worth about $ 586 million, about $ 2.3 billion total, and left a few Investors back confused.
These gains have drawn a lot of media attention. After reaching ATH, SHIB was also accepted for its usefulness. Despite the drastic price volatility, AMC Theaters CEO Adam Aron has announced that the company is considering accepting SHIB payments for ticket purchases. Le Bistrot d’Eleonore et Maxence, a bistro in Paris, accepts payments in SHIB.
SHIB momentum shifted to DOGE, investors started shifting their SHIB earnings into DOGE, causing it to rise 44% in a single day on October 28 and a 90-day high of 0.33 Dollar reached. This rally put DOGE in the top 10 by market capitalization.
DOGE is currently trading at $ 0.25, 65% below the ATH of $ 0.73 hit on May 8, spurred on by Elon Musk’s tweets. At the time of writing, the DOGE market cap is nearly $ 35 billion.
Johnny Lyu, CEO of the KuCoin exchange, said the phenomenon has drawn the attention of many retail investors.
“Popular coin memes are in the top 10 and have topped the trading volume charts on exchanges for some time, even outperforming Bitcoin. It can be said that the chance of becoming a permanent member of the top 10 club is quite high.
So if some of the more prominent coin memes are labeled “successful,” can other high-risk tokens make it to the top of market cap?
Coin memes flooded the market
After Dogecoin’s popularity skyrocketed, many dog-themed coins and other token memes entered the industry. One of them is SHIB, which has meanwhile reached DOGE’s market capitalization. The SHIB development team has also developed another token called the Doge Killer (LEASH), which is currently trading at $ 3,256.73 and is currently yielding 130.3%.
Another character trying to capitalize on the ongoing hype is Dogelon Mars, named after Tesla CEO Elon Musk and his love for space travel. In October, Dogelon Mars rose more than 3,780% and was listed on the OKEx and Crypto.com exchanges on October 29, beating SHIB’s 850% gain.
There are many other tokens that have been launched on various blockchain networks to bring the meme into the entire crypto ecosystem. For example, the Australian Safe Shephard (ASS) token based on the Binance Smart Chain (BSC) network and the Samoyedcoin (SAMO) in the Solana network with dogs.
Lyu mentioned, “The older the cryptocurrency, the stronger its position, and it will not be easy for newbies to reach the top and take a favorable position.” He added that it is more than enough to have two coin Having memes in the top 10 and no other coin memes standing a chance. However, he commented:
“But that’s the nice thing about crypto – anything can happen.”
Justin Trollip, a core member of the decentralized exchange Pangolin, says the short-term potential of all highly speculative dog-themed coin memes on blockchains is unpredictable.
Several new coin memes saw impressive gains in October, with SAMO seeing a 2.925% increase in October to a market cap of $ 389 million and Hoge Finance’s HOGE with a market cap of 2.923% in early October. However, that doesn’t mean these tokens will continue to generate such impressive rallies.
“For these tokens to continue to do well in the top 10 for the next few years, they have to outperform some of the pretty impressive projects and mature cryptocurrency investor class. Personally, I think it can happen in the long term. “
Trollip also mentioned that the recent trend towards token memes has been driven entirely by speculation and, in some cases, manipulation on social media. However, as seen on SafeMoon, he believes there is a limit to where marketing needs a token.
Social media spread the token meme
Social media is playing an important role in the increased adoption of token memes and dog-themed coins. Elon Musk is one of those people who often indirectly influence the price movements of DOGE and Floki Inu (FLOKI) through Twitter posts.
However, activities that directly affect the price of such coins could be monitored by financial regulators such as the US Securities and Exchange Commission and the US Commodity Futures (CFTC) commission.
In this regard, Lyu said:
“If Elon receives advertising money from the creators of DOGE, he is liable because he did not state that his tweet was an advertisement. But if Elon buys tokens and writes that he believes in them, then that is his right and there is nothing criminal about it.
Such activities in traditional financial markets with assets such as stocks, commodities, bonds, etc. are prohibited by the financial regulators. However, if this happens to crypto tokens, it will result in the loss of Satoshi’s original vision, according to Trollip.
It is possible that such an attitude could be extremely detrimental to cryptocurrencies in the long run. This could undo the advances made by the entire industry over the years.
New memes hit the market every day and are bought by retail investors who tend to buy in the past in hopes of exponential returns like DOGE and SHIB. In fact, the hype surrounding the dog coin has grown so much that the demand for real dogs is increasing.
Even so, the coin meme is still not a safe bet and you should trade at your own risk.
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According to Cointelegraph