What are meme coins, floki currencies and Dogecoin-killers?

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NEW DELHI: Dogecoin, the first meme-coin, launched in 2013, was once considered an ironic gimmick and has now gained quite a reputation, becoming the 10th largest cryptocurrency with a $32.54 billion market capital on October 19, according to CoinMarketCap.
However, the pioneering meme currency has faced stiff competition from Shiba Inu and other floki-themed coins. So what’s the fuss about these new floki coins? But first, let’s understand what meme coins are.
Meme coins are cryptocurrencies, inspired by popular social media jokes, sarcasms and puns.
Currently there are about 124 meme coins, according to the Coinmarketcap website. Dogecoin’s success in 2021 burgeoned the birth of many more meme coins imitating Doge.
* Meme coins are created with no specific use or inherent value, to gain quick high profits. In comparison, mainstream cryptocurrencies like Bitcoin are created with specific technology to boost trading and transactions in the crypto market.
* They are way more volatile than other cryptocurrencies as whales can lead to sudden rise and fall in their prices.
* For instance, Shiba Inu rose 230 per cent in 7 days following the sale of 6.3 trillion Shib tokens in the first 2 days of October.
* Their performance and fame are mostly linked with social media support and hype created by their influencers and they are highly community-driven.
* Many meme coins have unlimited stock that have a long-term impact on their prices.
* These coins are launched quickly, meaning they can be lost in the long term.
* According to the CoinMarketCap website, DogelonMars, MonaCoin and HogeFinance are among the top 10 cryptocurrencies in terms of market capital after Dogecoin and Shiba Inu on October 19.
Floki-themed cryptocurrencies
Floki- themed cryptocurrencies are dog-meme coins with the name Floki created after Elon Musk tweeted to name his Shiba Inu dog Flokifrunk on June 25. Some of the floki-themed coins include Shiba Floki, Floki Shiba, Flokinomics, Floki Inu and Baby Floki Inu.
Dogecoin-killer
Shiba Inu was launched in 2020 as a self-proclaimed killer of Dogecoin and aims to become an Ethereum-based substitute of Doge.
* Shiba Inu was created by a pseudonymous founder Ryoshi Inu.
* The meme coin was created to capitalize on the soaring popularity of the leading Dogecoin.
* The meme-coin has the second highest market capital of $11.12 billion after Dogecoin on October 19, according to CoinMarketCsp.
* It has three tokens namely Leash, Bone and Shib and it’s retail demand has increased since the initial listing.
Shiba Inu was recently listed on India’s oldest crypto exchange ZebPay on October 13 for trading and investing.
The triggering effect of the tweets
Though tweets are not meant to be taken as a price determinant for cryptos, Musk’s tweets have been seen to trigger the prices of the meme coins since the Dogecoin days.
* The very famous tweet of sending SpaceX satellite Doge-1 to the moon on May 10, 2021 helped gain Dogecoin billions of dollars.
* Musk’s tweet on May 19 2021– ‘How much is that Dogecoin on the window’– almost doubled the price of Dogecoin from $ 0.29 to $0.40 and Bitcoin fell below $40, 000 on the same day following the frantic sale of Doge.
* Musk’s September 13 tweet ‘Floki has arrived’ with the pic of his Shiba Inu puppy, surged the price of Shiba Floki coins to nearly 958.9 and Floki Inu rose 60 per cent in 24 hours.
* The recent tweet on October 4, with a picture of Musk’s puppy Floki on the hood of his Tesla car shot up the prices of Shib coins to 55 per cent and 22.13 per cent increase in Floki Inu’s price.





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