Hi everyone! This time I want to try to participate in a task given by professor @wahyunahrul from the Steemit Crypto Academy community. The professor gave several questions related about Meme Tokens.
Question 1
Why Meme Tokens could be one type of cryptocurrency that will have a big impact on the cryptocurrency market in 2021?
The existence of the Meme token in 2021 is an unexpected thing. Why not, because Meme Token is a cryptocurrency created just for fun to mock Bitcoin which is being adored by many in 2013.
At this time, Meme Token is one type of cryptocurrency that already has a great influence on the cryptocurrency market at large. There are already several Meme Tokens that have made it into the top 20 and 10 cryptocurrencies that have the largest market capitalization in the crypto market, and the names of these Meme tokens are Dogecoin which made it into the Top 10 and Shiba Inu who made it into the Top 20.
The beginning of the impact that Meme Token has on the cryptocurrency market stems from Elon Musk's Tweets that contain tweets like the one in the image below.
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In the picture above, we can see that Elon Musk, who is one of the richest people in the world today, made a Tweet containing about a Meme Token called Dogecoin. This tweet was posted on his twitter account on April 28, 2021. And now we see the consequences of this tweet, in the picture below I take a chart of the price movement of Dogecoin from October 28 to May 6, 2021 which we can see that there is a spike very high price against Dogecoin. This meme token managed to increase by almost 200% in just 10 days since the tweet was posted.
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Not only that, recently Elon Musk also made a tweet containing a photo of his pet dog which is a breed of Shiba Inu. This tweet was posted on October 4, 2021.
Because of the weet he made, a Meme Token has experienced a drastic price movement again. This time the affected Meme Token is Shiba Inu. In just 3 days, Shiba Inu experienced a price increase of more than 300% from its initial price.
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From these two examples, we can see how the impact that Meme Tokens has on the cryptocurrency market. With just a tweet from someone, Meme Tokens can experience price movements of up to hundreds of percent within a few days. And because of these moments many people are interested in getting into the cryptocurrency market in order to benefit from the fantastic price movements of Meme tokens.
Question 2
Do you think Meme Tokens is a type of cryptocurrency that shouldn't need to be created?
In my opinion, Meme Token is a development that cannot be stopped by anyone. As we know that memes are something that is inherent in many people, people have started adapting memes to various aspects of their lives, and the cryptocurrency market is no exception.
I see that Meme tokens are not a pest that should never be created in the cryptocurrency market, because I think the more types of cryptocurrencies are created, the more unique the cryptocurrency market will be and different from other commodity markets which tend to be monotonous. Then Meme Tokens is also a type of cryptocurrency that has been instrumental in attracting many people to enter the ceyptocurrency market. It is undeniable that Meme Tokens such as Dogecoin and Shiba Inu are one of the few cryptocurrencies that have succeeded in making many investors and traders enter the cryptocurrency market because of their fame.
Then, in addition to successfully attracting many people to enter the cryptocurrency market. Meme Tokens also have many uses which is the original purpose of making cryptocurrency namely peer-to-peer transactions. If someone doesn't like Meme Tokens as a joke, then you can still enjoy the benefits of Meme Tokens by using them as a transaction platform that is fully decentralized and doesn't require a third party anymore, so the transaction process will be faster and certainly cheaper because there are no more other additional costs.
Question 3
If you had to choose to invest or trade on Meme Tokens, which would you choose? Explain your choice in detail and provide strong evidence for your choice
I would prefer to invest over trading on Meme tokens. This is not unreasonable, because in my opinion Meme Tokens would be better if bought when the price was low and kept it for some time, then we would immediately sell it if there was a significant price increase in the short term.
As we know that Meme Tokens is a type of cryptocurrency that in general does not have very good fundamentals, there are still many Meme Tokens that are made carelessly and don't care about the project in the long term, so that most of the price movements of Meme tokens are affected. by the emotions in the market. Therefore Meme Tokens are somewhat less suitable if used as an investment tool for too long a period of time.
But Meme Tokens is also not a good cryptocurrency to trade in the short term, this is because the movement of Meme Tokens is very dependent on market sentiment, so the price movement tends to be unclear. Then on average, Meme tokens don't even have a large market capitalization, so it will be very difficult to sell and buy them.
So the best choice we can take is to make a medium-term investment, where we buy it when the price is cheap and sell it when there is market sentiment that makes the price soar, and at that time we have to immediately sell the Meme Token that we have because it is not necessarily the price could go up again.
Question 4
Choose a Meme Token (except Dogecoin and Shiba Inu) and do an analysis of the Meme Token with the following conditions: If in question number 3 you choose to invest, then do a detailed fundamental analysis of the Meme Token you choose to prove that the Meme Token of your choice is a good investment tool. (Screenshot Required)
In accordance with the direction of professor @wahyunahrul where we have to answer question number 4 according to the condition of the answer we took in question number 3, so this time I analyzed the fundamentals of a meme token called ERC20.
From the name alone, we already know that the ERC20 Meme Token is a cryptocurrency created on the Ethereum blockchain. According to data from CoinMarketCap, the current price of the ERC20 token is at $0.01843 which is experiencing a price decline of -4.75% in the last 24 hours.
According to the data I took from the official Meme Token ERC20 website, the circulating supply of tokens that have been circulating so far is 1.4B ERC20 out of a total supply of 14B ERC20, which means the number of ERC20 tokens that have been in circulation has reached 10% of the total supply of ERC20 tokens.
Currently ERC20 is ranked 8th as Top Meme Tokens and there are more than 10 thousand holders spread throughout the exchange.
The current largest allocation of ERC20 tokens is:
- CEO of Binance Exchange (CZ): 14%.
- ETH Founder (Vitalik Buterin): 13%.
- Donations for covid in India: 2%.
- GraysCale : 2,000,0000 ERC20.
The ERC20 project also offers a Farming platform that allows users to stake ERC20 tokens with other cryptocurrencies in order to earn Farming rewards. The Farming pairs offered are ERC20/BNB, ERC20/NFT, and ERC20/ETH.
Currently, the ERC20 Token is traded on several exchanges including: PancakeSwap and Mercatox.
Then if we look at the price movement history of the ERC20 Token, we can see that ERC20 once touched the All-Time High on July 7, 2018 which was at a price of $1.7. This is a positive thing where we can see that this token can experience a very sharp increase in price, and this can also happen again in the future if the project on this Meme Token develops.
From all the data that I have shown above, we can conclude that the ERC20 token is a Meme Token that has a large enough potential to develop into a Meme token that has a good project, and this can be a positive thing where there is a possibility to increase the price of the ERC20 tokens itself.
Conclusion
Meme Tokens is a new breakthrough in the world of cryptocurrency, the existence of Meme Tokens seems to tell the world that the cryptocurrency market is not a rigid and monotonous market. Meme tokens prove that jokes and jokes can provide real benefits to many people.
I am personally very happy to see the development of Meme tokens which are new every day, this makes Meme Tokens have a clear future and this type of cryptocurrency has also started to be serious in carrying out its projects. So now Meme Tokens is not a cryptocurrency that can only be traded, but AI can be counted as an asset that is held in the long term.
I thank professor @wahyunahrul who has given lessons on a very unique topic like this, I really get new knowledge from this given topic.