MEMECOINS 101

Memecoins are cryptocurrencies that originate from internet memes. They are influenced by factors like emerging utility, financial incentives, FOMO (fear of missing out), social media hype, celebrity endorsements, and strong community support.

These elements combine to create significant price movements and drive interest in meme coin assets. Developers create these tokens as a form of asset derived from viral topics or commentary which are used as a long-term investment, or as tools for decentralized finance (DeFi).

The main reason why meme coins gained traction is due to their humorous streak related to a certain internet meme. Investors seeking low-correlation assets that diversify portfolios have also been a great part of this demonstration.

The first-ever meme coin, DOGECOIN, was created in 2013 as a speculation of the cryptocurrency phenomenon and ironically took off because it was timely backed by Elon Musk.

Also, other meme coin assets such as POPCAT, which recently gained a premium market cap of $1 Billion, show the fast-moving pace of meme coins in the Cryptocosm.

These assets also offer the potential for significant financial returns due to the volume of capital poured into the market by investors.