Crypto Mania: The Rise of Meme Coins

Introduction: The Rise of Meme Coins

A unique and playful digital asset class has taken the internet by storm: meme coins. Having originated from internet humour and online communities, meme coins have captured the attention of both crypto enthusiasts, Web3 funds, and casual observers alike.

What Are Meme Coins?

Unlike traditional cryptocurrencies such as Bitcoin or Ethereum,, meme coins typically lack a strong emphasis on technological advancement or utility. Instead, their value is primarily driven by social media buzz and the enthusiasm of online communities. Despite their unconventional beginnings, meme coins have demonstrated the ability to achieve substantial market capitalisation, with average returns of 103% in the past month — over 6x higher than the market’s 16.1% average return.

Their popularity and investment appeal are frequently swayed by influential figures (i.e. Elon Musk, Donald Trump) or social media trends, resulting in highly volatile prices.

A Brief History of Meme Coins

Dogecoin ($DOGE) was one of the first meme coins that blew up in popularity, created in 2013 as a satirical homage to the viral Doge Shiba Inu meme. What began as a humorous experiment evolved into a significant movement, fueled by internet memes, endorsements from celebrities like Elon Musk and a committed online community.

The current resurgence of meme coins is driven by the likes of Brett ($BRETT), FLOKI ($FLOKI), Pepe ($PEPE), dogwifhat ($WIF), BONK ($BONK), and Peanut the Squirrel ($PNUT).

What Makes Meme Coins Popular Among Crypto and Web3 Communities?

Cultural impact: Meme coins capture viral internet trends and memes, adding a playful element to the typically serious cryptocurrency space
Community building and influence: They form strong, humorous groups that offer members a sense of belonging and shared identity
Investment potential: Meme coins are highly volatile, attracting investors seeking to capitalise on short-term price swings rather than long-term growth. This can bring about significant returns for early participants.
Marketing power: Endorsements from celebrities and influencers can cause a spike in their popularity and trading volume, making them effective tools for garnering attention
Innovation and learning: Meme coins are used to experiment with new technologies and governance models in an engaging and informal environment
FOMO Culture: Meme coins exemplify the fear of missing out, as crypto traders new and old tend to be egged on by stories of overnight millionaires and buy into the online hype

Conclusion

Meme coins are a fun, accessible and dynamic vertical in the crypto space, characterised by creativity and humour, with growing interest from crypto VCs. Creating meme coins is now easier than ever, with platforms like Pump.fun and Emojicoin.fun offering simple point-and-click experiences, opening up meme coin creation to anyone with a creative idea and minimal technical skills.

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*Disclaimer: The information provided on this blog does not constitute investment advice, financial advice, trading advice, or any other form of professional advice. aelf makes no guarantees or warranties about the accuracy, completeness, or timeliness of the information on this blog. You should not make any investment decisions based solely on the information provided on this blog. You should always consult with a qualified financial or legal advisor before making any investment decisions.

What's aelf Ventures?

aelf Ventures is the investment arm of aelf, a high-performance Layer 1 AI blockchain platform that offers builders and users advanced AI functionalities and cutting-edge infrastructure. With a dedicated fund of $50 million, aelf Ventures is focused on empowering Layer 1 blockchain projects and various aspects of the Web3 ecosystem, such as DeFi, GameFi, NFT, and those looking to make the transition from Web2 to Web3.

Till date, aelf Ventures has invested in projects such Crystal Fun and Confiction Labs (pka. Mythic Protocol), and is actively incubating promising ventures within the ecosystem such as Portkey, eBridge, Forest NFT Marketplace, AwakenSwap, eWell, and BeanGoTown.

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Tool/Platform	What's it about
ChainGPT	An AI-powered assistant for the blockchain and crypto industry, specializing in content creation, language translation, smart contract coding, and more.
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TensorFlow	A versatile open-source machine learning framework used for building AI models that can analyse blockchain data, enhance security, and predict market trends.
Alethea	A platform that creates 'Intelligent NFTs' (iNFTs) with unique personalities and the ability to engage in conversations, powered by AI and blockchain technology.

Chain	URL	Explorer
AELF	https://aelf-test-node.aelf.io/	https://explorer-test.aelf.io/
tDVW	https://tdvw-test-node.aelf.io/	https://explorer-test-side02.aelf.io/

Feature	Description
Inheritance	ERC-404 inherits from the interfaces IERC-404, IERC721 Receiver, and IERC165, implementing functions specified in these interfaces, behaving as both ERC20 and ERC721.
Data Structures	Mappings track balances, allowances, approvals, and ownership of tokens. Double-ended queue stores ERC721 token IDs. Data for managing ownership and indices of ERC721 tokens.
Constructor	Initialises token name, symbol, decimals, and other necessary variables for ERC20 and ERC721 tokens.
Token Minting and Burning	_mintERC20 function for minting ERC20 tokens. _retrieveOrMintERC721 function for minting ERC721 tokens and retrieving from a bank. _withdrawAndStoreERC721 function for depositing ERC721 tokens into the bank.
Transfers	Functions for transferring ERC20 and ERC271 tokens between addresses. Distinguishes between token types based on ID. _transferERC20WithERC721 function handles transfers involving both types.
ERC20 and ERC721 Interactions	Approve function handles approvals for both token types. Functions like transferFrom, safeTransferFrom, and permit handle transfers and approvals.
EIP-2612 Support	Supports EIP-2612 permit functionality for ERC20 tokens.
Interface Compatibility	Implements necessary functions for ERC-404 and ERC165 interfaces, indicating compatibility with ERC20 and ERC721 standards.

Role	Max Number
BP	2N+1, N starts from 8 in 2022
Candidate node	5*(2N+1)
Voter	No limit

Benefits	Description
Makes smart contracts 'smarter'	AI-driven smart contracts can autonomously modify terms based on predefined conditions and real-time data input, ensuring that the contracts are not just automated but also intelligent and self-improving over time.
Levelled up data analysis	Data is the new oil, and AI is the machinery that refines it. It is possible for AI to reduce large-volume blockchain data analysis time by up to 90%.
Boosts security	Through machine learning models, AI can prevent frauds and detect security threats in real time. It can identify potential breaches, predict future threats, and adapt to evolving security measures.
Lowers carbon footprint	AI algorithms help optimise energy consumption in blockchain operations, given the flak drawn by activities like Bitcoin mining.

Rise of Meme Coins: From Internet Jokes to Crypto Phenomenon | aelf Ventures