Meme Tokens - Crypto Academy / S4W7 - Homework Post for @wahyunahrul

Hello fellow steemians, it's a wonderful week and a great pleasure to attend this week's lecture of the beginner's course. All thanks goes to the Almighty Allah and also a big thanks goes to Professor @wahyunahrul who took his time and make sure to digest this lecture to our understanding. This lecture was really helpful as I learned a lot from it.

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Below is my homework submission post.

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1). Why Meme Tokens could be one type of cryptocurrency that will have a big impact on the cryptocurrency market in 2021?

Meme another term for jokes is part of our everyday life. We all crack jokes either with our friends or our families even with strangers we meet. We all fancy jokes because it makes us happy and sometime makes us forget the sad moments we have been through. In a situation where they are are going to merge memes and jokes into our cryptocurrency world is a big development for the community.

Currently, there are a lot of people who dedicates their time in producing memes and jokes and we cannot look down on the impact this people have in our society. If we realized that the world has accepted memes, why not give our full support to tokens project which were established of memes. Meme tokens tokens are currently making a lot of impact on the cryptocurrency market but I will elaborate and discuss below why this meme tokens project will continue to make a big impact on the cryptocurrency market.

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• The community behind the meme token project is large

Before a cryptocurrency project become a success in the cryptocurrency market, the community and support for that project should be large. This large community supporting the project helps to sustain it in the cryptocurrency space after it has been launched. Mostly, before a project is launched, the team behind the project always try to create the awareness of traders and investors and they do so through their social media handles, websites or through the creation of airdrops. Most projects that creates awareness through airdrops usually give out some tokens to participants in the project for free.

We can all realize that memes are one way or the other part of our lives now because they are being shared on almost all the social media platforms we have each and everyday. Not only that, the adoption of this tokens by the masses is absolutely amazing. This shows the support this meme project is receiving and we can simply judge it's successfulness with the support and population behind the project. The community behind the project is undoubtedly large and they are doing amazing jobs because they keep on promoting their projects that are going to be launched in the cryptocurrency market.

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• The recent forthcoming projects

Off late a lot of new meme tokens are been created and launched into the cryptocurrency world. This new and forthcoming projects that are launched everyday really shows that the meme token project is gaining more popularity and power. There are quite a number of meme tokens which were established recently but one of the most popular among them is the Doge 2.0 project.

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This Doge 2.0 project is a meme token and it has been doing well since it's launched. This token project was launched in this year August and there has been a considerable increase in this token price. You can check out the price for this token in the Coinmarketcap, and at the time I was making this post, the price of the Doge 2.0 was $0.04938.

Prices of other meme tokens are also rising each and every hour, and this clearly shows the competition between this meme tokens. Some of these other tokens are Dogecoin, Shiba Inu, MonaCoin, Hoge Finance, etc.

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• The impact of Dogecoin successfulness

Among all the meme tokens in existence today, Dogecoin was the first meme coin that was established. The Dogecoin meme coin was first built or established in the year 2013 by two men namely Billy Markus and Jackson Palmer. This coin after it was launched was widely accepted in the crypto market or space. It also a gain a lot of support and recognition from both traders and investors in the market.

Recently, one of the most richest and famous man in the world who is in the person of Elon Musk has been promoting and calling investors to invest in the Dogecoin project.

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The constant promotion of the coin by Elon Musk on his Twitter page makes the price to attain it's new all time high.

Below is a graph of Dogecoin price reacting to Elon Musk tweets.

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Because of how influential Elon Musk is, his tweets attracted a lot of new investors who invested huge amount of money in the project which initially begin as a joke. You can check out the price for this coin on the Coinmarketcap, and at the time I was making this post, the price of the Dogecoin was $0.2471 with a marketcap of over $32 billion.

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This tokens are already having a huge impact on the cryptocurrency market and it will continue to impact positively on the market because of the reasons I stated above.

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2). Do you think Meme Tokens is a type of cryptocurrency that shouldn't need to be created?

For me I think that there is the need for Meme tokens to be created as they have made a positive impact on the cryptocurrency market. We all can see that the creation and development of Meme tokens are warmly welcome by many traders and investors because they also help to improve the growth of the crypto community. Not only that, Meme tokens also help the cryptocurrency market capitalization to increase because of their availability and supply.

The most successful and first meme token has over 130 billion circulating supply of Dogecoins. The other Meme tokens available are also reaching billions and millions in circulating supply, and this is a positive development to the cryptocurrency community.

I also have the strong believe that the recent Meme tokens will receive a lot of improvement just like Dogecoin, Shiba Inu and Dogelon Mars Elon tokens. As I already made mentioned, there is a huge population pushing and supporting this project to be accepted by most traders and investors. There are other investors who are also willing to render their support to this projects by investing huge amount of money in them.

Although this tokens are highly volatile than the normal coins, but they have shown a promising growth and development within this short period of time. So I think that there is the need for the creation and establishment of more of the Meme tokens into our cryptocurrency market.

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But with new beginners who have the mind of investing in Meme tokens, I would like to caution them to be very careful with the token they choose to invest in. The reason is that, Meme tokens can sometimes be extremely volatile because most of these tokens are jokes and they do not have any meaningful and real purpose.

Also, there is a possibility that you might lose the money you invest in the long because of their volatility and how quickly they are been launched. Although Meme tokens are good to invest in, you should also note the disadvantages and bad sides involved in investing in these tokens.

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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.

Deciding to choose between investing in Meme tokens or trading on Meme tokens is not something we should take lightly. This is because the decision you are taking can either make you to gain a lot of profit and it can also make you to lose all your money. For me, in making this kind of decision, I would like us to take all the meme tokens available into consideration and see if we can get anything common that runs among them. And yes of course, if we look critically we can see that almost all the meme tokens are highly volatile.

The reasons for this volatility is because Meme tokens were created just for jokes without any meaningful or real purpose unlike other coins like Bitcoin, which was created due to the financial crisis at that time. Meme tokens are always affected by the smallest news or announcements because a lot of investors do not buy the idea of investing their huge amount of money into token projects which were created out of a mere joke. So this investors upon hearing any small news which is not favorable to them would rapidly remove their assets and sell them off to avoid making loss.

This behavior of the investors do not affect those investing in the token badly as compared to traders who are into trading meme tokens. This is a big flaw or drawback for this meme traders and that is the last thing I would wish to involve myself in.

Although investing in cryptocurrencies is risky, but in general trading is more riskier as compared to investing especially involving meme tokens. This is because, with investing you can buy the tokens when the price is at it's lowest and then hold it for sometime for the price to increase or appreciates. So when there is appreciation in price, you sell off your tokens and take your profit. One can invest a very small amount of money in meme tokens and still make a huge profit from them. Through investing, we can also stake our meme tokens to gain more profit from them.

As I already made mentioned, most of the meme tokens do not have any tangible purpose behind their creation which makes it not to have policy or system governing them. They rather grows and survive in their community support from influential people. So if it happens that a trader has been analysing the market from the technical aspect, he can lose his investment if there is a small problem caused within the community.

An evidence to back my choice of investing in meme tokens is simply taking into account the Return on Investment(ROI) of the meme tokens.

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Return on Investment can be defined as a performance estimate that is used to analyze and examine the profitability of an investment made. It can also be used to correlate the efficiency of several investments made.

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The screenshot below shows a statement telling us how one can make a lot of profit by investing smaller amounts in meme tokens.

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Also the screenshot below shows the ROI of the monaCoin, Dogecoin and Shiba Inu token.

So assuming I decided to invest $10 into the monaCoin at that time, by the ROI figure, I would have gotten more than $18,010. And I don't think if I decided to go in for trading I would make this amount of profit. That's one of the reasons I choose to invest in Meme tokens than trading in them.

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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)

I will love to invest in the SafeMoon token so I will be doing a fundamental analysis on it. I will like to first describe what the SafeMoon token is.

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The SafeMoon is a cryotocurrency token which was established on a blockchain called the Binance Smart Chain and released in the year March, 2021. The SafeMoon project amassed over a million owners or holders of the token after it was launched. When transacting with the SafeMoon token, a fee of 10% is charge on the quantity of SafeMoon tokens you are transacting.

Out of the 10% fee charged, 5% is remove and share among the holders of the SafeMoon token and the remaining 5% is pushed into into wallets having a different currency(liquidity pool). The fundamentals and basis on which the SafeMoon token was created is very strong which makes it a good project to invest your money in.

The SafeMoon token is among the best 10 meme tokens that are created so far according to coinranking.

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The SafeMoon token has about three main features and I would be discussing each of them below.

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• Liquid Pool(LP) Acquisitions: As I already made mentioned, a fee of 10% is charged and 5% is taken out and listed into the liquidity pool. This 5% deducted for the liquidity pool supports in protecting and preserving the price foundation for both sellers and buyers of the token.

• Reflection: In this feature too, 5% is taken out of the fee charge during transactions and distributed among users who hold the SafeMoon token. This holders of the SafeMoon token are motivated to continue holding and also purchase more of the tokens in order to continue benefiting from this 5% out of the fee.

• Manual Burn: There is a process called the burning process in the SafeMoon project which helps to make the token scarce therefore reducing it's circulating supply. The scarcity of the token from the cryptocurrency market helps to increase the price and value of the token. This burning process is always manual at the same time very transparent for users. There is always an announcement to inform and create the awareness of users before the process begins.

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Fundamental Analysis of the SafeMoon token on the coinmarketcap.

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• The price of the SafeMoon token at the time I was making this analysis was $0.000002238.

• The token is currently ranked on #210 and it on 1,609,599 watchlist.

• The price high and low of the token within the last 24hrs are $0.000002286 and $0.000002209 respectively.

• The SafeMoon token has a marketcap of $1,309,651,784 and a volume of $7,030,269.

• The token also has a total circulating supply of 586,536.37B SAFEMOON.

• The SafeMoon contracts are the Ethereum and Binance Smart Chain(BEP20).

• Below is a screenshot showing the SafeMoon markets with the pairs in some of the markets.

• Below is also a screenshot showing the chart of SafeMoon to USD.

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Conclusion

Although Meme tokens were created out of jokes, but it has make a big impact on the cryptocurrency market. Off late, meme tokens have gain a lot of attention because of the influential people like Elon Musk pushing and supporting this project. Most investors have also start investing huge amount of money into this project because they have begin seeing some positive impact in investing in them. Traders have also started trading this tokens and they are currently in circulation in the market.

Although trading and investing in meme tokens is risky because of their volatility, one can also make a lot of money from investing in them. Most investors usually buy them when the price is low and sell them to make profit when the price appreciates.

For me, I will advice beginners and new users to make a lot of research in meme tokens before investing in them. This is because, investing and trading in them is more riskier unlike Bitcoin or Ethereum.

Thank you.

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Cc: @wahyunahrul