How Social Media Influences Meme Coins Popularity
The growth of meme coins is illustrative of the intense influence that social media exerts over economic trends. Meme coins, represented by Dogecoin et al., are cryptocurrencies that have become a result of internet jest and cultural memes. Much less grounded on technology and utility than traditional cryptocurrencies, meme coins owe their salience and growth to the support of their user bases, relevant trends, and, above all, the endorsements of relevant influencers.
The popularity and price growth of these meme coins extremely depend on platforms like Twitter, Reddit, and TikTok. Therefore, it is on the wings of trending memes, hashtags, and viral posts that attract new investors, accelerating the vast price spikes. For instance, Dogecoin ran wild in the trade market following the unconventional support of an Elon Musk tweet, with millions of followers behind him. Reddit communities such as r/WallStreetBets have also tried to make an easy-buck affair by starting group purchases, which further pushes up the price of meme coins to a level where it simply does not make sense.
The relationship of meme coins with social media as witnessed has successfully enacted a saga wherein a simple joke was advanced to become a multi-billion-dollar market. However, the pathway is one of stark vulnerabilities in pop-driven cultural symbols, i.e., meme coins remain highly susceptible to small moves or tantrums of sentiment on the online platform causing huge price splashes.
Social media might have strengthened decentralized access to financial opportunities, but the whole point of meme coins reminds one that investors can create considerable wealth with the potential acquired only after all other contingencies, i.e., research into these does attract much on the cautious side with sound risk management in hand.
~ Regards,
VEIGO (Community Mod)
Upvoted! Thank you for supporting witness @jswit.
This is why I personally feel that meme coins can never be good for investments unless they have a usecase because you cannot invest in an asset that has no intrinsic value and is completely dependent on influences. Nice Blog! : )