Meme Tokens - Crypto Academy / S4W7 - Homework Post for @wahyunahrul
Hello once again great steemians, its another week in the steemit crypto academy, and we have a very interesting and intriguing course by the name meme tokens by our dear professor @wahyunahrul, Let's move on to the main subject of the week, enjoy reading😁
Why Meme Tokens could be one type of cryptocurrency that will have a big impact on the cryptocurrency market in 2021?
First of all, we should be aware of what the term “meme” means then also together with the term “meme tokens”. We tend to fully understand that memes are jokes and funny characters or symbols used in making people laugh and smile.
The word meme was from a particular group of people who uses meme as a culture or way of life by imitation.
Memes are signified by written words or numbers, it could also be an image with written text or just an image that is virally transmitted mostly in the social media platforms as means of either mocking or depicting a funny character.
A meme can be in a form of videos as well as images as I said earlier and also can be in form of written texts.
Tokens are virtual currencies that serve as a representation of a crypto asset. Token also indicates how crypto assets are denominated.
Tokens are fungible assets that are tradeable as well. These tokens are made to stay on their blockchain for exchanges within a particular blockchain.
Crypto Tokens are used also for investment ideologies, whereby these tokens can be used in storing valuable assets and also to purchase valuable assets.
Meme tokens are a combination of my first two definitions made earlier above, these tokens are made as mockery tools initially and are also made by the inspiration of making jokes. The first meme token to be created was the DOGE coin which was formed by software engineers by the name Billy Markus and Jackson Palmer to mock the speculations of cryptocurrencies initially.
DOGE coin was created in 2013 as Parody initially without any beneficial purpose to investors and traders, but today with the wild investment of investors on DOGE due to its intriguing market capitalization DOGE has skyrocketed from its initial price of $0.10 to $0.2526 and is among the top 10 cryptocurrency asset with the highest market capitalization.
The meme token since the invention of DOGE has escalated and multiplied with currently over 100 meme tokens in the crypto world.
The major difference between a meme token and a major coin like Bitcoin, cardona, ethereum is that these major tokens are made to solve financial/real-world problems, whereas the initial purpose of the meme token was for fun and jokes. But until current meme tokens are being developed for the adjustment of other cryptocurrency assets in solving real-world problems as well.
Now looking into why these meme tokens are going to make an impact on the crypto world, we should remember that the prices of these assets are decided indirectly by investors and traders (all crypto users).
There is as a result of the fear and greed emotions of traders, whereby when an asset is been bought (wanted more by holders or traders) it triggers the appreciation of the price of an asset increasing also its value.
This is vice versa to when an asset is been sold off, this affects the price value of the asset by the depreciation of the price.
Understanding these processes of the crypto volatility market, we would tend to know that there are a lot of influences and factors that could either hinder an asset from gaining value just as losing value.
Currently speaking about the DOGE coin we would notice in past months an influence of a well known rich technology inclined man by name Elon musk who has a major influence in the price movement of assets which occurred with the coin DOGE on the 21th of may 2021 when he made the statement “Yeah, I haven't & won't sell any Doge," this statement affected the price trend movement of DOGE into a higher price trend which as well increased the price value of DOGE coin.
These influences tend towards not being in full effect for the first month but surely would affect the crypto asset in question, and this is because of his influence in the crypto world which started with a statement he made over bitcoin being accepted in the purchase of tesla his company car. And this was also in respect to his company quality and his status of being among the first-third richest men in the world.
So, his interest in meme tokens has a great impact and influence in the crypto world which would lead to positive and worth-worthy tokens to trade your assets with and store.
Since the achievement of DOGE, investors now see meme tokens not just as fun or joke but as an asset worth investing in due to their current appreciation of values and market capitalizations. These also could affect meme tokens to a greater impact by investors and traders this year.
With the current evolution of cryptocurrencies which has gone viral and known to the world, traders, and investors would tend to invest in meme tokens after a complete fundamental analysis. So all these attributes would enhance and develop the usefulness and value of meme tokens.
Do you think Meme Tokens is a type of cryptocurrency that shouldn't need to be created?
Lol, for the sake of meme tokens, which were developed using the major coin's ecosystem, just like the ethereum ecosystem which invented DOGE coin, these coins serving as a tradeable token in most major currencies ecosystem has aided in the reduction of networks charges and also a medium and means of getting other currencies for different purposes.
This is beneficial to investors and all other exchange platforms in the sense that investors have access to all kinds of currency in the crypto world. And to exchanges in the sense that it lures investors into the use of a particular exchange due to availability to get the meme token in question for other purposes beneficial to the investor.
I would say for me the creation of meme tokens is a very impressive and useful idea. Starting from the idea of mocking crypto-assets such as bitcoin😂, over its market fluctuation rate and price movement as of then. But now with the outburst of DOGE coin which is a meme token, with its market capitalization which is worth over billions, making it the 10th token to be ranked in the crypto world.
So the creation of meme tokens is useful in the adjustment of other crypto assets features into better quality and less troubled features which is an attractive sight for investors and traders, so, NO meme tokens are meant to be created.
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 invest and trade on DOGE coin and this is because the meme token DOGE is no longer seen as a funny or joke token used in mockery but rather an investment opportunity for traders and investors.
As I said earlier in my explanation on DOGE which I said is been moved and influenced by a man named Elon musk due to his influence and knowledge in crypto has impacted greatly on the coin by making it known and with investing on.
DOGE is the first-ever meme token to be created and invented, DOGE is among the top 10 coins in the world with over a billion market capitalization making it the highest market cap of all time among all other meme tokens.
People would say, “for a man like Musk to acquire and hold DOGE there would be a reason to it” and this would motivate and ginger investors into purchasing and stocking DOGE for a greater future potential.
The analysis so far on DOGE and the influence of its fan base which has the largest fanbase among all other meme tokens made it a promising coin to invest in. Trust me, with the following analysis held on DOGE, DOGE would go a long way in profiting investors and traders who seem to understand fully the fundamental analysis behind DOGE.
With the influencer and world top 2 richest man Elon musk, with their major and motivating fanbase, and also with the current holders of DOGE, DOGE has been analyzed to hit its all-time high in 2022. I would be placing the trade below on DOGE/USD for these reasons.
DOGE/USD Screenshot gotten from my Tradingview app
The trade above was done on Tradingview, where I traded DOGE against the UNITED STATE DOLLARS. In the trade above I made use of two indicators in other to calculate and predict the future prove the movement of MONA, and these two indicators are as follows;
- 1 -Bollinger band
- 2 -Stochastic RSI
The Bollinger band are technical indicators that determine on a relative basis whether a price of an asset is high or low.
The Bollinger bands are standard deviated lines placed above and below the moving average (SMA 20).
The Bollinger bands are calculated together with both the upper Bollinger band and lower Bollinger band in other to determine the volatility rate of an asset.
The Bollinger band signals traders on where a price of an asset is high and in other was an occurrence of a trend reversal.
Whenever the price pattern of an asset touches or crosses the upper Bollinger band, it means that the price is high at the moment and signals to traders to watch out toprice breakpoint in other to sell the market and this is vice versa to when it touches the lower Bollinger band, which also signals that the price of the asset is low and traders to get ready for an uptrend movement at the time.
The Stoch RSI is a technical analysis indicator whereby the relative strength of the price of an asset is been measured and determined.
The RSI is been derived from the StochRSI, this is because stoch oscillators are been applied to some RSI values.
The stoch (RSI) is used in the prediction of crypto/stock market movements by correlating the closing price range of an asset to its security price.
The stock RSI is determined by two intertwined moving lines which depict the following D1+ and D1- which is measured in a line of 0-80. the positive D1 above the negative D1 depicts that price of an asset is in an uptrend movement, and when prices cross or reach the 80 region, it means that the price of that asset has been overbought signaling a proven reversal to the bearish angle or can also stay there for some time.
This is vice versa to when the negative D1 is above the positive D1 it depicts the bearish movement of asset price and when it reaches or crosses 0 signals that prices are oversold and there would be a trend reversal to the bullish side, this could stay here for some time, depending.
Following the functions and analysis of the two indicators used, I sold DOGE at 0.2556700 because the stochRSI showed that prices are in the overbought region which crossed the 80 stoch chart and because the orange line which is D1- is above the blue line which is the D1+.
Also with the signal of the Bollinger band, which shows that the price of the asset is at the higher side of the Bollinger band thus above/at the upper Bollinger band, totally above the SMA line signaling a reversal in trend to the bearish side.
Choose a Meme Token (except Dogecoin and Shiba Inu) and analyze the Meme Token with the following conditions:
I would choose the MONA meme token, and this is because of its inciting use in Japan, also with its market capitalization which is worth up to a billion dollars value. The mona coin has the following characteristics.
MONA is a digital cryptocurrency built on a decentralized blockchain predominantly used in Japan. The MONA meme token was launched in the year 2013 by an anonymous developer by the name Mr. Watanabe.
The MONA ecosystem creates blocks much faster than that of bitcoin. The MONA coin has been approved by the regulatory authorities in Japan for daily transaction uses and exchanges in the country.
MONA is powered by the algorism Lyra2RE(v2), a proof-of-work algorithm that was written by the owners of VTC (vertcoin). This Lyra2RE (v2) is a chain-based with different series of hash functions in it such as Blake, BMW (Blue Midnight Wish), Cubehash, and so on.
The Lyra2RE algorithm is a favor to the GPU miners because it's just a single CPU-botnet that controls most hash powers.
The MONA coin was issued as a result of payment for mining activities which records the ownership of tokens into the MONA blockchain explorer.
Just like the block creation of other crypto assets, MONA has an average of 1.5minutes per creation of an average block which is worth much faster than the bitcoin average creation of blocks in 10 minutes.
Source
source
Following the analysis of MONA, as of the time of this writeup being the 21-10-201 by 8:40 AM MONA coin has a 4.26% increase in price value. The following is the overview features of MONA
| MONA | FEATURES |
|---|---|
| Market capitalization | US$99.58 M |
| Trading volume | US$3.84 M |
| Circulating supply | 65.73 M |
| Maximum supply | 105.12 M |
| Total supply | 65.73 M |
| Market ranking | 424 |
| Current price | $1.515 |
The following analysis which was gotten from coinmarketcap.com which shows a cumulative result and details of all coins, be it a major or meme token.
But as on regards to meme tokens alone MONA is ranked 4th which the price trend has been on bullish movement for the past 7 days.
Investing in this meme token will be a profitable one based on the following facts above and MONA as a meme token with almost a billion-dollar market capitalization is an attractive site do investors who tend to invest on meme tokens.
Meme tokens which was initially built as a fun product has now been looked into by investors after the succession of DOGE which was the first meme token to be created.
These tokens now seem promising as investors now tend to fully understand and analyze it's importance to the crypto world.
Currently, all other meme tokens produced are no longer for fun or to make jokes rather they are invented as a modified substitute to previously built tokens/coins.
With greater speed and abilities to exchange and carry out transactions at low fee charges and high transaction speed.
Meme tokens have a greater potential in the crypto world as great influencers and investors tend to know more, study, and invest in these tokens for rainy days.
Likewise other major coins, not all meme tokens are successful projects thus would lead to loss of capital and funds when invested on without proper and further research.
In all we do and trade, be it a major coin or sh*t coin, investors are advised to use both fundamental, technical analysis, and indicators while carrying out their trades for more efficient and successful trading.
Traders are also advised to use the trading exit points which are the stop-loss (SP) and the Take-profit (TP) in case of price trend retracement or reversal .
Thanks to professor @wahyunahrul for a wonderful and interesting course.
