It is difficult to put into words the rapid pace at which cryptocurrency market is changing. You would not be able to see how the dust settles over the sudden surge of a cryptocurrency token. A new obscure token will, more often than you think, quickly upstage the former star.
This is exactly what’s happening with the meme coins, where the latest star of the meme coin is the now-famous Floki Inu. Elon Musk tweeted a picture of his Shiba Inu pet, on September 13, with the caption “Floki has Arrived” and the meme coin Floki Inu soared by 1,000% in just two days.
This was the start of a rapid increase in the price for this meme coin. This cryptocurrency is community owned and inspired by Tesla and SpaceX boss Elon Musk’s Shiba Inu, as mentioned on Floki’s website.
Ryoshi, an anonymous person created the coin in August 2020. Elon Musk has been seen supporting the project since March 2019. He tweeted that he was getting a Shiba Inu in March 2021. He tweeted later, in June, “My Shiba Inu Will Be Named Floki”.
Floki Inu trades at $0.00007731, with a volume of just over $16 million. You can now buy 1,00,000 coins for $7.7 According to coingecko.com, value of crypto coins increased by 24 per cent in just 24 hours. The price increase is not a significant gain considering the extremely low price.
The meme coin has risen 1,200 between August 1 and October 15, 2021. It rose from $0.000005 per piece on August 1, to $0.000065 per unit on October 15. It grew by more than 1,200 percent in just two and a quarter months.
What’s A Meme Coin?
A meme coin is a cryptocurrency that has a specific theme. Dogecoin was the first meme coin. It was named after a dog. Other meme coins include Shiba Inu, Floki Inu. Although Meme coins are highly volatile cryptocurrencies, there doesn’t seem to be any real reason for this extraordinary jump.
Experts attempt to understand the causes of the huge rise in popularity of meme coins. One explanation put forwarded by them is that the presence of a strong community behind them. Strong personality cults behind these coins are another reason. Through his tweets, Elon Musk has endorsed Floki Inu.
The third reason is the fact that retail investors are attracted to meme coins due to their low entry price, driving their prices higher.
Indian Crypto Exchanges For Meme Coins
Despite the staggering growth of these currencies, Indian cryptos have not yet jumped on the bandwagon, sass Sharan Nair who is the chief business officer at Coin Switch Kuber. He explains that the reason why these coins are not listed on exchanges is because, unlike western markets, Indian exchanges give more importance to customer protection.
“This is what I believe is right. To ensure that customers don’t lose their money when investing in these coins, we take a wait-and-watch approach to them”, he explains. He also downplays the rapid price rise for meme coins, saying that “all these coins are trying to replicate the so-called success story of DOGE coin.”
These coins’ investors are often newbies who want to make quick money. They don’t know much about blockchain or crypto.
Summarizing, we can say that meme coins are more volatile than standard cryptocurrencies like BTC, ETH and XRP. There aren’t strong fundamentals to the rise or fall of meme coin, nor can we predict which one will rise next.