The global economy is currently in a precarious state. Everywhere you look, asset prices are taking a beating and it’s not a pretty sight to behold at all. The supply chain issues that began in 2021 have already taken a toll on companies and their ability to deliver the right results. Now, we have a geopolitical conflict in Ukraine to handle.
Both of these factors had already rattled the markets for weeks. Now, it is looking like rising inflation due to governments’ inability to manage the economic fallout from the coronavirus might be threatening the delicate balance we had as well.
Inflation fears are already mounting, and it is looking more serious by the day. So, investors do what they always do – turn to alternative assets. Cryptocurrencies are a major class of alternative assets, and it is looking more like coin prices could soon begin seeing surges as more institutional investors troop into the market.
However, there will be one class of cryptocurrencies that might be getting more attention than others – meme coins. These are essential assets that have been created to capture the growth in the social media landscape. They rely more on the strength and depth of their communities above anything else, and this is what makes meme coins so attractive.
Dogecoin, Shiba Inu, And The Meme Coin Revolution
Meme coins aren’t a novelty to the crypto industry. These assets have been around for a while, and they have shared a similar focus – building a community of adoring, die-hard believers on social media and using this community’s strength to grow.
We saw the first real iteration of how strong meme coins can be in 2021 when Dogecoin (DOGE) broke into the limelight. The asset, which had been relatively obscure – suddenly started seeing massive gains after big names like Elon Musk began supporting it on social media. This wave of support sparked massive FOMO (fear of missing out) as many investors started trooping into DOGE and got rich off the asset.
The wave eventually got DOGE as high as a price of $0.75. At this point, it had become evident that DOGE wasn’t just a fringe asset anymore. Everyone wanted a piece of the DOGE pie, and the asset’s price saw dramatic increases due to that. From there, it became obvious that meme coins were a real thing.
Looking to coast on DOGE’s wave, Shiba Inu soon began to make some moves as well. The asset eventually caught on, listing on multiple exchanges and getting millions of people online to invest. The self-proclaimed Dogecoin killer, SHIB eventually achieved its goal when it momentarily flipped DOGE to become more valuable than the original meme coin.
Ever since the DOGE and SHIB revolutions, we’ve seen an introduction of more meme coins in the market. Many of them seem to have arbitrary goals, while others are more focused on what they are looking to achieve. These assets occupy an important place in the market because they offer an opportunity for investors to make money.
Unlike traditional coins, meme coins tend to see their values rise sporadically in the short term. The caveat to this is that their prices can also witness massive drops that will crater their values – and the portfolios of investors who still hold them.
So Should You Invest In Meme Coins?
There’s little doubt that you can invest in meme coins – especially if you have the money to spend. As stated earlier, investing in many of these assets is just as much of a gamble as investing in any other cryptocurrency.
We’ve seen stories of people who made a lot of money via meme coins. When SHIB hit its all-time high last year, a wallet with the coin in it was found to have turned $8,000 to $5.7 billion in about a year. These gains are real.
However, the truth is that people who make this money occupy a very small portion of the market. Investing in meme coins should be taken with caution because their prices are even more volatile than traditional cryptocurrencies.
The Functionality Rule
Another thing to keep in mind is that a lot of meme coins are starting to have utility. DOGE began as a joke of a currency, but it has since grown. Tesla accepts DOGE for merchandise payments at its official store, and AMC Theaters is expected to launch a mobile app soon that will allow users to pay for their movie tickets using the asset.
Then, there’s Volt Inu – a new asset that is grabbing a lot of investor attention. Launched recently, Volt Inu is a hyper deflationary token whose developers are focusing on a multifaceted investment strategy.
The Volt Inu developers are focused on investing in different aspects of the industry – including stablecoins, mining nodes, staking, and much more. This way, they can drive returns and generate wealth for token holders.
Assets like these are attractive because they’re not just popular – they’re useful. At the end of the day, an asset might not necessarily make sense for many investors because they don’t have actual utility. Instead, assets like Volt Inu offer the functionality needed to keep investors.
So, the truth is that you can have meme coins as part of your inflation-beating strategy. At the end of the day, meme coins have proven to be a viable asset class, and many have made money from them. When you can further find a meme coin with functionality, that’s the gold standard.
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