Meme Tokens: Shiba Inu And DogecoinApril 10, 2022
The different cryptocurrencies have been confusing the financial markets for years, including some so-called “Meme Tokens”. At the latest since the Shiba Inu price increased by several thousand percent weeks ago or since the Dogecoin price also exploded on Paybis at the beginning of 2021, these cryptocurrencies are also in demand.
But what exactly is the difference between conventional cryptocurrencies, and above all what or who is behind these projects? In this post, we will answer these questions and make a guess about the future of the largest meme currencies.
What are meme tokens?
Basically, meme tokens are just regular cryptocurrencies operating on one of the many blockchains but inspired by an internet meme. These coins often have much higher volatility than conventional cryptocurrencies such as Bitcoin or Ethereum.
The meme token is usually supported by a strong community and is either available in large numbers or in unlimited quantities. In addition, the price of meme tokens is often driven by FOMO, the “Fear Of Missing Out”. This means that people buy the coins so as not to miss anything. So the Dogecoin is unlimited and Shiba Inu was launched with 1 trillion coins.
The first of the “Meme Tokens” and the 10th largest cryptocurrency by market capitalization, the Dogecoin was released by Billy Markus in 2013 and was originally intended as a parody of Bitcoin.
Especially after Elo Musk tweeted about Dogecoin, the price increased significantly at the end of 2020 and the beginning of 2021 and stood at 0.70 euros in the meantime. The supply of Dogecoin is unlimited but designed to be artificially scarce. However, it must be said that Dogecoin has lost momentum and value since Elon Musk stopped regularly tweeting about this meme token and has fallen below the 0.30 euro mark. Also, there is less development all around Dogecoin than Shiba Inu. The only news you often hear from Dogecoin are new exchange listings such as now on Paybis.
Shiba Inu Coin
The Dogecoin competitor that has the ultimate goal of overtaking the Dogecoin was released on the Ethereum blockchain in 2020 by an anonymous group called “Ryoshi”. Since the beginning of 2021, the Shiba Inu has increased in value by 60,000%. The two currencies are currently neck and neck, with Shiba Inu ranking 11th among all cryptocurrencies.
One of the many special features of Shiba Inu is the “burning”. When “burning” this meme token, Shiba Inu coins are systematically destroyed in order to reduce the number of coins and increase the price. On the one hand, this should of course stabilize the price, but it is also important for the course itself so that the individual Shiba Inu coins can increase in price. If this is not the case, a price of one cent would not be possible because the market capitalization would be too high. Shiba Inu also plans to publish its own blockchain in the coming weeks and months, as well as to open its own platform for NFTs. More and more shops, both online and offline, are also accepting Shiba Inu as a form of payment.
Read More About: What is a MEME Token?
What exactly is behind the meme token is often difficult to say, especially with the two largest ones you can see that there is mainly a community behind it. Although it must be admitted that Shiba Inu tries to be more than just a meme. Finally, we would like to advise against meme tokens, with the exception of the two mentioned. Such projects are often a scam, most recently seen with the Squid Game Token, where the developers made off with several million dollars.