$Trump and $Melania: What are meme coins and how do they work?
Since their launch, both $TRUMP and $MELANIA meme coins have gained significant attention.
US President-elect Donald Trump launched a meme coin by the name of $Trump on Friday, just days ahead of his inauguration scheduled for Monday.
His wife Melania Trump followed suit on Sunday, launching a meme coin $MELANIA, ahead of her return to the White House for the second time as the First Lady of the United States.
Donald Trump Inauguration Live Updates here.
Since their launch, both $TRUMP and $MELANIA meme coins have gained significant attention. $Trump has gained a market cap of $8.87 billion, while Melania’s coin has a market cap of $1.19 billion.
According to CoinGecko, Donald Trump's meme coin is currently the 22nd most valuable cryptocurrency in the world while Melania's coin stands as the 94th most valuable.
The in-coming US President has promised that his administration would be a crypto friendly one. Many big names from the crypto industry have been named in various roles in the administration.
So what exactly are meme coins and how do they work?
Meme coins are a form of cryptocurrency or digital asset that take their inspiration from internet memes and trends. They usually get their names from characters, animals, or individuals popular on social media. Meme coins are heavily influenced by internet memes, pop culture, online hype, and social media trends, and just like any other form of cryptocurrency, they are highly volatile and speculative.
These coins, like any other cryptocurrency, are created using blockchain technology. The blockchain technology stores and shares data across a network and the tokens are hexadecimal numbers stored in the blockchain that facilitate transactions. The images of the coin are inspired by internet memes, making them attractive among investors. For ownership purposes, they have private keys.
Dogecoin, backed by Trump ally Elon Musk, and Shiba Inu are some popular meme coins.
Are meme coins better than other cryptos?
Advantages:
- Meme coins are an attractive and fun asset that can be used to learn about cryptocurrency and blockchain technology.
- Meme coins are often less expensive than most other cryptocurrencies. Thus, they become more
Disadvantages:
- Meme coins are highly volatile and work on speculations and trends. Therefore, they are quite risky for investors.
- Meme coins are digital assets without intrinsic value. They have no uses beyond tokens for trading or speculation.
- Due to the lack of enough regulation on meme coins worldwide, the risk of potential scams is very high.
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