IAS Gyan

Daily News Analysis


28th March, 2024 Economy


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  • Meme coins, a unique category of cryptocurrencies, have gained significant popularity in the digital currency space. These coins trace their origin to the growth of meme culture on the internet.
  • Often lacking in any real underlying value, these coins have seen massive price fluctuations in the past and crypto traders have burnt their fingers due to their highly volatile nature

What are meme coins?

  • Also known as ‘memetic tokens’ or ‘community coins’, meme coins are digital currencies created as a form of satire or humorous tribute to the internet culture. They often feature quirky names, logos, and branding that reference popular memes, jokes, or internet phenomena.
  • These coins are inspired by memes, which are humorous or interesting ideas captured in various forms of media like images or videos. Unlike traditional cryptocurrencies such as Bitcoin or Ethereum, meme coins are characterised by their lighthearted and often comedic nature, designed to go viral and be shared widely.

What are the key characteristics of meme coins?

  • Although satirical, the highly volatile nature of these coins at times makes crypto traders unhappy.
  • Meme coins are subject to extreme changes in value over short periods, driven by the current buzz surrounding the token. They typically have a massive or uncapped supply, leading to very low values per token. These coins leverage blockchain technology, often utilising smart contracts on platforms like Ethereum and Solana.
  • Creating a meme coin is relatively easy compared to traditional cryptocurrencies. With the proliferation of blockchain platforms and decentralized finance (DeFi) tools, virtually anyone can launch a meme coin with minimal technical expertise and resources.

What are some of the popular meme coins?

  • Dogecoin(DOGE) is one of the original and most prominent meme coins, created in 2013 as a joke to poke fun at mainstream cryptocurrencies. Dogecoin features the iconic Shiba Inu dog meme. The current circulating supply of Dogecoin is 143.54B, according to reports. It is trading at around Rs 14.31 at the time of publication.
  • Shiba Inu(SHIB) Inspired by Dogecoin, Shiba Inu is another meme coin featuring the same breed of dog as its mascot. Launched in 2020, SHIB gained traction as an alternative to Dogecoin and has since attracted a sizable community of supporters. With the current price of Rs 0.00248, there are 5,89,289.4 billion coins in circulation according to popular crypto platform Binance.

ALL ABOUT CRYPTOCURRENCY: https://www.iasgyan.in/daily-current-affairs/cryptocurrency-8


Q. Examine the socio-economic implications of cryptocurrencies in the context of India. Discuss the opportunities and challenges posed by their adoption, and evaluate the regulatory frameworks necessary to govern their use in the country.