It is difficult to describe in clear words the speed at which the cryptocurrency market is developing. Because by the time you see the dust settle on the crypto token boom, a new obscure token will, more often than not, lift the previous star up in no time.
That’s exactly what is happening with meme coins, where the latest star is the now popular meme coin – the Floki Inu.
When Elon Musk tweeted a photo of his Shiba Inu pet with the caption ‘Flokie is here’ on September 13, the meme coin Floki Inu rose 1,000 percent in just two days.
This was the beginning of the rapid increase in the price of this meme coin. As noted on Floki’s website http://theflokiinu.com, this cryptocurrency is community-owned and inspired by Shiba Inu of Tesla and SpaceX boss Elon Musk.
The coin was created in August 2020 by an anonymous person known as Ryoshi.
Elon Musk seems to be putting his weight behind the project since March this year. In March 2021, he tweeted ‘I am getting a Shiba Inu’. He later tweeted in June, ‘My shiba inu will be named Floki.
Floki Inu now trades at $0.00007731 and has a trading volume of a little over $16 million. This means you can buy 100,000 coins for just $7.7. According to Coingecko.com, in just 24 hours on 18 October, crypto coins increased by 24%.
However, an increase in prices does not mean any huge gains in view of the extremely low price.
However, in the past two and a half months, between August 1 and October 15, the meme coin rose 1,200 percent. It increased from $0.0000005 on August 1 to $0.000065 on October 15. In two and a half months, it went up to over 1,200. Percent. This means that if you have invested only ₹500 on August 1, it increased to. might have happened ₹According to data from Coincodex, 600,000 on October 15th.
What is a meme coin?
Meme Coin is a cryptocurrency associated with a theme. The first meme coin was Dogecoin which was named after a popular dog. Other meme coins include the Shiba Inu and the Floki Inu.
Meme coins are a hypervolatile cryptocurrency, although there doesn’t seem to be a solid reason behind this astonishing leap.
Experts try to find out the reasons for the massive rise of these meme coins. One of the reasons for promoting them is the presence of a strong community behind these coins. Another is the presence of strong personality cults behind these coins. For example, Elon Musk has put his weight behind Floki Inu through his tweets.
The third reason is that the low entry level prompts retail investors to forge a path for meme coins, driving their price higher.
Meme coins on Indian crypto exchange
Despite the astonishing growth of these coins, Indian cryptos are not eager to jump the proverbial bandwagon.
Sharan Nair, Chief Business Officer, CoinSwitch Kuber, explained the reason for the protest, saying, “Exchanges like ours do not list these coins because unlike Western markets, in India, we place a lot of focus on customer safety and make it the topmost priority. Which I think is the right thing to do. We take a wait and watch approach for these coins to ensure that customers don’t lose money by investing in them.”
He also downplays the sudden price increase of meme coins because he says, “All these coins are trying to replicate the so-called success of the DOGE coin. Investors in these coins are usually new and want to make money quickly.” They don’t understand crypto or blockchain.”
In short, we can highlight that Mem coins are highly volatile, even more so than other volatile standard cryptocurrencies like BTC, ETH, XRP, and ADA. Unfortunately, there is no strong infrastructure behind the rise or fall of meme coins, and which one will rise next and when – no one can say for sure.
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