A meme coin is a cryptocurrency that’s inspired by some of the world’s most popular memes and other internet jokes. These tokens don’t usually have any initial value nor are they backed by an underlying asset or utility, rather, their value is completely dependent upon and derived from the communities surrounding the jokes.
Beyond the community’s sentiment towards the coin, there is no value to be had from owning a meme coin. Especially considering many meme coins have an unlimited supply and no burn mechanism, hence the total circulating number of coins continues to increase, driving down the value even further.
Dogecoin (DOGE) is by far the most popular meme coin. It was originally created as a joke that ended up gaining some traction when Elon Musk pumped it. It can be used for payment, however, despite its popularity, it remains extremely volatile.
Shiba Inu (SHIB) is a parody of Dogecoin. It can be used to purchase goods and services in the ecosystem but beyond that, it’s pretty much worthless.
SafeMoon (SFM) is technically classified as a meme coin due to its fortified online community called the SafeMoon Army, however, the company actually hopes that its use as a preferred currency for online exchanges becomes a thing.