Why Invest in Memecoins?
To be completely honest, we have not invested in nor traded any of the memecoins. We never touched $DOGE or $SHIB or $FLOKI. But, we do realize that there are valid reasons for these coins to have experienced the exponential growth that they’ve had.
Dogecoin was introduced in late 2013 based on the internet meme DOGE that was also gaining popularity around the same time. The meme was of a Shiba Inu dog with internal thoughts written in Comic Sans and broken English. This meme has also received the recognition as “one of the best internet memes of the 2010s”.
Many memes are born on Reddit and gain traction there before they explode on other platforms. Reddit has a very active and devoted investing community, and these communities have significant influence and, apparently, power to move markets.
But why is this combination of internet memes and investing so powerful? Memes usually have humorous purposes and have elements that make them easy to replicate, they are usually things or concepts that a large group of people can relate to. These elements give them their ability to go viral very quickly and very effectively. The meme gains a life of its own and gains a community behind it. When you think about a traditional investment such as investing in $AAPL stocks, isn’t it the same idea? You have a community of people that rally behind the brand Apple and believe in what it stands for. With $DOGE or $SHIB the concept is similar, you have a very large group of people that believe in the fact that this meme is funny / relatable / meaningful etc.
Dogecoin has done an incredible job at creating a brand that is true and authentic, and that people can relate to and stand behind. Yes, it is just a memecoin… and that is exactly what people expect from it.
This article does not reflect the investment theses of Exo Ventures nor does it provide investment advice or suggestions. It is written purely for educational and entertainment purposes.