If you are not familiar with meme coins, meme tokens are cryptocurrencies designed to recognise memes, videos or other forms of media. Usually, they are based on a certain funny idea captured in an image, designed to go viral and shared.
Meme tokens have an unlimited supply with their popularity deriving from pop culture. It is worth noting that the meme coin market can be very volatile and can change in a short period of time. The reason for their volatility is due to the fact unlike normal fiat cryptocurrencies, meme coins are uncapped meaning that there is no limit on how many of them can exist.
The value of the coin is usually decided by how viral the meme has gone. They are designed to exclusively be traded and usually have a very low value per token. They take advantage of blockchains and related technology that comes with them and use smart contacts such as Solana (SOL) and Ethereum (ETH). Although being new to the market, there are an estimated 200 meme coins around on these blockchains with many more currently in their presale phase entering the market.
They can be sold, traded and bought like any other cryptocurrencies by visiting marketplaces or by downloading their app if there is one. Most investors tend to buy when low and sell when high as they are not designed to be staked or are in a decentralised autonomous organisation (DAO).
Despite the fact they are not considered the most stable investments many have profited from being token holders, meaning there is a chance to make large amounts of money.
You can do that by verifying that liquidity pools are held by burn addresses, and by ensuring that the meme coin project has been audited by a reputable third party. You usually do not want developers or a single person to hold more than five per cent of the token’s total supply. By keeping these in mind and by conducting your own research there is a strong opportunity that meme tokens could be the ones to make you rich.