Top 5 Use Cases of Meme coins and How to Invest in Solana Meme coins
Memecoins are capitalizing on the craze of the vertical movements of the bull market, not in a technologically-driven way as Bitcoin and similar tokens, but in a socially-driven manner, whilst maintaining the foundational technology of the blockchain. The idea of meme coins in cryptocurrency is to bridge the cultural and social barrier experienced with the main currency and to reach a broader demography. Their economic success to a great extent is determined by grammatical incorrectness and internet culture accuracy. For example, widely accepted vernaculars in the meme coins communities include using wen/when, wif/with, and so many other iterations from proper grammar.
After the unprecedented success of DOGE coin, numerous tokens named after popular internet memes have sprung up. DOGE, the most popular meme coin was birthed based on a Reddit misspelling of a popular Shiba Inu Dog. It was created satirically to disrupt the contentious narrative of popular crypto coins at the time and to promote the ideology on which cryptocurrency was founded. The success of DOGE was largely due to a community of crypto enthusiasts from Reddit, and promotions received from public figures like Elon Musk, Mark Cuban, and Snoop Dogg.
Top 5 use cases of meme coins
Meme coins, unlike bitcoin and some other altcoins typically have a meager per-unit price, owing to their unlimited supply. They are inspired by virality and most times created for the utter joy of social media culture. Notwithstanding, there have been some significant use cases in between the jokes. Some of these are:
- As an investment asset: are the most important motive for getting into a meme coin project. If you have a few dollars to spare and are into market speculations, then meme coins are a volatile investment worthy of throwing your money into. Meme coins may not have a solid business model like bonds and tangible assets, but their uncertain value proposition may get you your next $10 or get you generational wealth. Using DOGE as a case study, between November 2020 and May 2021, Dogecoin gained approximately 27,000% in just these six months. To put things into perspective, if you invested $5 into Dogecoin 8 years ago, as of today, your total profit will be $385,000. The thought of this sounds slushy, as a disclaimer, this is not always the case with meme coins most of the time. Meme coins are generally considered risky and volatile investment assets, often characterized by pump-and-dump schemes. Your $5 can do a 3X and dip to zero in a matter of minutes; scammers have negatively tapped the meme coins hype to rug pull, infamous cases of rugs in meme coins ecosystem WSB coin, YODA coin, Jugs coin, and a dozen other meme rugs that happen daily.
2. As a means of exchange: Tesla is a leading company that accepts meme coins as a means of exchange, Dogecoins are accepted to purchase merchandise at the company’s online store, and their CEO has been one of the most vocal supporters of DOGE, and dubbed the Dogefather. Microsoft is another leading company accepting Dogecoin as a means of payment. Companies like Twitch, AirBaltic, Wrist Aficionado, Sheetz, and Newegg are some of those currently accepting meme coins as a means of exchange.
3. Building vibrant communities: Unlike traditional cryptocurrency, meme coins are socially driven tokens and are dependent on communities to grow. They derive their values from community beliefs rather than commercial demand. Meme enthusiasts with a shared interest and similar sense of humor, are compelled to actively advocate for the success of the coin they hold. This advocacy increases the marketing reach, drives adoption, and amplifies the impact of the meme coins. Ultimately enabling individuals to be heard and fostering a strong sense of community.
4. Charitable causes: beyond the LOL and virality, meme coins are being used to support charitable causes across the world. A noteworthy one was when Dogecoin holders crowdfunded to sponsor the Jamaican Bobsleigh team to the Russian Olympics. Meme coins are also drawing attention to environmental sustainability. AIDOGE, billed as an ethical alternative meme coin, is setting aside a percentage of its revenue to protect the rainforests. Holders of the meme coins will vote regularly on which charities will receive their next donations.
5. Onboarding newbies: The technological buzzwords and jargon of the crypto space can often be intimidating. Meme coins offer a better means to bridge this existing gap to onboarding newbies to the crypto ecosystem. This light-hearted approach, tied to internet culture and viral memes is relatable to anyone, with little need for a technical background. This serves as a point of entry for users to build on, and learn more about the nuances of blockchain operations.
How to Invest in Solana Meme Coins
The first step to investing in meme coins is choosing a hot wallet. The wallet of choice may vary depending on the main chain of a meme coin. For meme coins on the Solana chain, Phantom is a go-to wallet provider. Avax meme coins are supported on Metamask wallet. Coinbase wallet supports meme coins on the Ethereum network. Other hot wallets that support meme coins are Ledger, Trust Wallet, Exodus, and Trezor.
For this article, the Phantom wallet which is a decentralized wallet provider will be used to provide a step-by-step guide to purchasing a Solana meme coin. You will have to purchase Solana, the main cryptocurrency on which Solana meme coins are built. This may be done on a central exchange like Coinbase; here is a video guide to purchasing cryptocurrency from Coinbase using your bank card.
Steps For Buying Meme Coins With a Phantom Wallet
Step 1: Download the Phantom app from your app store: phantom.app
Set up the wallet by selecting “create new wallet”. You will be required to enable biometric security using a fingerprint or facial recognition to secure your wallet. A secret recovery phrase will be presented to you; this is the most important part of your new wallet, ensure it is stored in a secure place, iCloud, or your drive. NEVER SHARE your secret recovery phrase, as it may lead to you losing your wallet’s funds.
Step 2: Funding your Phantom wallet with Solana
(L-R): The first image shows how your homepage will look after setting up your wallet. Funding your phantom wallet requires that you click on Solana to show your unique receiving address. This address will be used to receive the Solana coin you will be sending from Coinbase.
(credit: hiss solana/YouTube)
After funding your wallet from Coinbase, refresh your phantom homepage, and the amount received will pop up at the top of the page.
Step 3: Connecting your Phantom wallet to a decentralized exchange
Go to the bottom right corner of your Phantom homepage and click on the globe. This page will show you trending decentralized exchanges where the Solana meme coins you want to invest in will be swapped (bought) using your available Solana balance.
Click on Raydium; this is the decentralized exchange to which your Phantom wallet will be connected.
Clicking on the connect wallet icon at the top right corner of the Raydium landing page will ensure your Solana balance is available to be swapped for your preferred meme coins.
After connecting your wallet, your page should look like the image on the left, showing the Solana balance in your Phantom wallet. In the “From” column, select SOL; the abbreviation for Solana: you will input the amount of Sol you wish to swap here. In the “To” Column search for the abbreviation of the Solana meme coin you want to get, for example, if you are interested in investing in dogwifhat, the abbreviation is WIF.
Alternatively, you can search for the contract address of the meme coin you want; this can be obtained from the website or Twitter handle of the meme coin. The contact address is a better option. It ensures there is no accidental swap of your Sol for the wrong coin.
Click on the settings icon to set your preferred slippage tolerance; due to the price volatility of meme coins, you may need to set a higher slippage tolerance than the default one provided.
Step 4: Click on the swap option, and your Sol will be available for swap. The meme coin will then be updated to your Phantom wallet balance.
(credit: hiss solana/YouTube)
Conclusion
Investing in meme coins can be highly rewarding, as demonstrated by the potential for significant gains over a short period. This volatility that can lead to these gains can also lead to substantial losses. You must conduct thorough research, invest with caution, diversify your portfolio, and be prepared to withstand the fluctuations in market prices.
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