Meme coins have become all the rage in recent years. These fun crypto coins are often based on the latest meme to hit the internet, making them very popular with the general public. With the rise in interest comes an increase in demand and investment, but what’s driving the interest behind meme coins in 2023?
Younger generations are investing
An impressive 40% of investors in meme coins are actually in the younger age bracket. Surveys show that the 18 to 40-year-old bracket invests in meme coins more than any other ages. In fact, this age group makes up 40% of total investments in meme coins.
Perhaps the biggest driver behind the success of projects like those on a meme coins list with younger generations is how they are linked to internet memes or cultural references. With younger generations using social media heavily, it’s likely that this is influential in their decisions as they know the memes being referenced more than older generations do. As such, it’s fun investing in these coins for this younger age group.
The survey highlighting the trend for younger generations investing in meme coins offered up a whopping 55 questions to more than 2500 participants in the US. These questions highlighted trends amongst investors, such as the reason to invest.
Surprisingly, only 11% of investors studied actually said that they were making investments for long-term financial gain. Most of them were actually investing purely for entertainment or to feel like they were part of something. Millennials and Gen Z made up over 80% of those actually investing.
What was even more interesting about the survey was that it found that the majority (more than 60%) of participants said that the jokes and memes found in meme coins was what helped them to understand the industry as a whole. It even encouraged users to look into meme coins, crypto and decentralized networks in a more informed way, with more than 55% claiming this to be true.
Of course, some of the respondents also had favorite coins. It comes as no surprise to see that more than 70% liked Dogecoin (DOGE) which was probably the reason for being interested in meme coins in the first place. Most of the users (89%) also said that they got their daily news via social media sites, which also explained why their knowledge of meme coins was that much higher.
How meme coins are performing
While there are more investors in meme coins these days, it doesn’t mean that meme coins are on the rise all the time. As meme coins are a decentralized currency, they are very volatile. This means that their value can rise and fall dramatically from moment to moment. Even recently, the overall market capitalization has dropped. Just four months ago in July, it was down just over 0.6%. Part of the reason for this is that there was a decline in six of the top meme coins, including Dogecoin, Shiba Inu, and Pepe.
This is why it can be pertinent for investors to look for new meme coins rather than relying on jumping in to invest in older, more established coins. Often, investors can make use of low-entry presale costs for meme coins. New coins have a much lower cost than more established cryptocurrencies. This means that they’re very accessible for new investors who may not have the capital to make larger initial investments. A small investment can be made, which can still grow if the meme coin is hugely popular later on.
Following on from this, the success of meme coins is based on speculative potential. As they’re based on viral memes, it’s likely that the value of the coin will increase simply due to the hype surrounding the original meme. It can be risky, but substantial returns can be made on early investment into such trends.
These meme coins often cultivate large, dedicated communities. These are engaged and push the interest surrounding a specific coin and meme. It can help give investors insight and support when involved in the community and can even lead to input on the coin’s future development and direction.
However, it’s always essential to vet any presale carefully before investing. It’s not great to always get caught up in the hype as there are some pump and dump type schemes out there. Fraudulent sites will hold fake ICOs and take off with any funds invested in their supposed meme coin scheme. Insiders will hold onto coins, subsequently selling them off in bulk to ensure there is a massive drop in the coin’s price. In many instances, even if you wait, the coin never recovers and you lose money. As such, research is key, and you should always find out the intentions of the project before joining.
Where to purchase meme coins
Meme coins can be purchased from the coin’s official site, especially when engaging in presales. It’s also worth checking on exchange sites such as Binance Launchpad for the latest presales. Crypto brokers and centralized exchanges hold meme coins after they’ve been released.
To purchase them, you will need to have a crypto wallet to store them in. As with other cryptos, you purchase meme coins using regular, fiat currency.