$TRUMP and $MELANIA meme coins: What are they? How do they work? & more

US President-elect Donald Trump and his wife, Melania Trump, recently launched meme coins, $TRUMP and $MELANIA, ahead of their return to the White House for the second time.

Since their launch, both $TRUMP and $MELANIA meme coins have gained significant attention, with a market cap of $8.87 billion and $1.19 billion, respectively. $TRUMP is currently the 22nd most valuable crypto in the world while $MELANIA is the 94th most valuable, according to CoinGecko. 

Trump, who is very vocal about cryptocurrency, called the new launch“investments” in a recent rally. The US President-elect's wife, introduced her own meme coin, $MELANIA, on January 20 (Sunday, January 19 in the US).

Trump has promised to usher in crypto-friendly regulations and has a host of pro-crypto names nominated in his administration.

Here's all you need to know about meme coins.

What are meme coins?

Meme coins are a form of cryptocurrency or digital asset inspired by internet memes and trends. They are named after characters, animals, or individuals popular on social media. Meme coins are heavily influenced by internet memes, pop culture, online hype, and social media trends, and just like any other form of cryptocurrency, they are highly volatile and speculative.

How does meme coin work?

Meme coins are created using blockchain technology, which stores and shares data across a network. The tokens are hexadecimal numbers stored in the blockchain that facilitate transactions. The images of the coin are inspired by internet memes, making them attractive among investors. For ownership purposes, they have private keys.

Some other examples of meme coins

Dogecoin (DOGE): It is one of the most popular meme coins among investors. Launched in 2013, it was created by software engineers Billy Markus and Jackson Palmer as a parody of cryptocurrencies. Elon Musk backs it.

Shiba Inu (SHIB): A popular meme coin, usually called a “Dogecoin killer,” launched in August 2020. Shiba Inu follows a similar theme to Dogecoin.

Advantages of meme coins

• An attractive and fun asset to learn about cryptocurrency and blockchain technology.
• Compared to other forms of cryptocurrencies, meme coins are less expensive, making them more accessible to investors.

Disadvantages of meme coins

• Meme coins are highly volatile and work on speculations, making them very risky for investors.
• Meme coins are digital assets without intrinsic value. They have no uses beyond tokens for trading or speculation.
• Due to the lack of enough regulation on meme coins worldwide, the risk of potential scams is very high.