Online communities play a vital role in promoting a crypto project and driving popularity to a crypto like one of the meme coin that we hear about a lot is the Dogecoin.
This is often based on the popular buzzwords and cultural references resonating with the millennials.
Meme Coins
Meme coins are the coins that are sometimes created as a joke or based on a cultural reference. While these meme coins seen as a novelty before, have now gained traction lately with several investors seeing them as a means of potentially making some quick bucks.
Meme coins like Dogecoin, Shiba Inu are the ones which have gained some good popularity.
Source: Yahoo Finance
The Community's Role
The role of online community is considered to be the key drivers of their popularity.
Platforms like Twitter, Reddit, Discord have become a hub for discussions and other stuff related to these meme tokens.
Information is being shared by the devotees about which coin to invest and which to avoid.
These online communities help in driving demand for these meme coins with users coming together and create campaigns that could help pump the value of a particular coin.
The recent surge of Shiba Inu can be attributed in part to the efforts of its online community, which are known for promoting Shib on social media platforms and forums.
Community's power can even convince exchanges in listing a coin.
Looking at Dogecoin, since it's creation in 2013 as a joke quickly gained a cult following. Dogecoin has been one of the successful coin to date with the market capitalization that peaked at around $90 Billion in May, 2021.
Dogecoin is still the 10th largest coin in the market.
Elon Musk has been supporting Dogecoin and his tweets helped driving interest in the crypto.
Despite the success of Dogecoin, they also have critics. Some investors see Dogecoin as a highly risky and speculative investment and one that lacks fundamental value.
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