Hello everyone in the STEEMIT family, thanks to all the people making this Crypto Academy to be a success. Thanks professor @wahyunahrul for this week's beginner's course. Below is my homework post.

WHY MEME TOKENS COULD BE ONE TYPE OF A TOKEN THAT HAVE A BIG IMPACT ON THE CRYPTOCURRENCY MARKET IN 2021?

Meme tokens first came into the cryptocurrency world in 2013 and had been in existence since then, but it can rightly be said that many people were not aware of such type of token before it started receiving avid support from one of the richest person in the world and an expert in the technology world known as Elun Musk.

The connection of these meme tokens like the Doge coin with Social media influencers and celebrities have made such type of token to gain a lot of popularity in recent times and it will definitely gain more fame as long as these influencers keep endorsing them.

This we support from influencial names has made the meme tokens to be very attractive to people and traders are becoming very interested in such coins because more people might be in need of it.

Source
Many fans of these celebrities who are in support of these meme tokens might be interested in holding those tokens and this will eventually cause a serious upsurge in the price of the meme tokens and this will have a big impact on the cryptocurrency market.

The use cases of some of the MEME tokens are also capable of further turning meme tokens into the next big thing in the cryptocurrency world. Some Meme tokens like Safemoon encourages the investors holding the token
to earn higher towards based on the total number owned, this has made many people to acquire larger amount of the coin and these kinds of features could attract more users.

ARE MEME TOKENS A KIND OF TOKEN THAT DOES NOT NEED TO BE CREATED?

The Meme token, as the name implies is inspired by meme and the whole thing about these type of token is just like a meme, but was it really necessary for it to be created? I am of the opinion that does not need to be created.

While the normal cryptocurrencies like Ethereum and Bitcoin are driven by the purpose of having real world impact, most of the MEME tokens does not have any purpose but just a mere joke.
A lot of the meme coins have an unlimited supply, in contrast with what we have with other cryptos like Bitcoin that are finite.

This will eventually have a very reasonable effect on the long-term value of the token and this is so because they have no real purpose.

The meme tokens in most cases are made just for the purpose of attracting buyers so that the price of the token can go up, thereby the owners will be benefited alongside the early investors while the masses will gain much from it.

I am one of the people who believe that meme tokens are just pump-and-dump schemes. This means that the traders who bought the coin at the early stage will “pump” it up, they will do that by encouraging others to buy. Then they will now sell or “dump” their coins into the unsuspecting crowd and this will eventually bring the price of the token down again.

THE MEME TOKEN I WOULD CHOOSE TO INVEST; SAFEMOON.

Screenshot of coinmarketcap

With over 100 meme tokens available on the cryptocurrency market today and more are being added daily, it can be tough to know which one to research and invest in.

But the newly created SAFEMOON token seem to be safer and it has many features that I will like to invest in it if am to invest in a meme token. Below are some evidence for my choice.

• Reflection: This seem to be one of the most exciting features of the SAFEMOON token. When a transaction is done with the token, a fee is charged and that fee is distributed to the holders of the token. This will be a huge benefit for the holders of the SAFEMOON token.

A second fee is also charged and this second fee is distributed to various liquidity pools on Pancake swap and other platforms. This helps to increase the liquidity of the token.

• The Binance smart chain: As a token holder, you need to invest in a token that you trust so much. SAFEMOON token is built on the Binance smart chain which uses a consensus mechanism known as proof-of-Authority. This might make the blockchain to be centralized because they are the ones who pre-approve the validators, but the Binance blockchain is a highly trusted blockchain and that is one of the reasons I would choose to invest in the SAFEMOON token.

Market performance: The SAFEMOON token is currently performing very well in the crying market and it is quite attractive for every investor. It is ranked 212 on coinmarketcap as at the time of this writing. This is quite an impressive position for a newly launched token. It also has a market cap of $981.88 million and that is an encouraging one.

FUNDAMENTAL ANALYSIS OF THE SAFEMOON TOKEN THAT SHOWS THAT IT IS GOOD TO INVEST IN IT.

SafeMoon happens to be one of the newer meme tokens to hit the cryptocurrency market in this year. This particular cryptocurrency project is a community-driven approach to the DeFi systems. After the initial launch earlier this year, they now have over 2.5 million holders of the meme token and up to 585.536 trillion coins in circulation based on data from CoinMarketCap. The founders had the purpose of creating a coin that will ensure “safe” gains and then prevent the inevitability of bubbles.

The SafeMoon meme token holders earn passive rewards over a period of time, and they have penalties discourage selling.

Screenshot of coinmarketcap

Who created SAFEMOON?
This meme token is managed by a team of six people who all look to have some degree of working together previously. Based on their LinkedIn profiles - the CEO, John Karony, the CTO, Thomas Smith and the Community manager known as Trevor Church set up an indie game studio which is called TANO, an abbreviated version of "Technically A New Operation". And they all worked together in the game studio.

The website for TANO only display the words "Alpha Launch Coming." So it could mean that something bigger is coming, hence my choice of the meme token.

SAFEMOON in the cryptocurrency market.

Screenshot of coinmarketcap

SafeMoon might be so new, but it's market data is a very encouraging one. Currently, the price is about $0.000001861. Just after it was launched, it experienced a huge price jump to what is still an all-time high of $0.00001399 on April 20, this was more than 1,560% higher than it's price in the previous week.
As at the time of this writing the total market cap of SafeMoon is $1,083,182,651.89, ranking it 211th on coinmarketcap.

This is a good one for a brand new cryptocurrency that is competing with more than 7,000 other coins.

Screenshot of coinmarketcap

features of Safemoon token.

Community-driven: The term community-driven implies that the growth and even the steering of the SafeMoon cryptocurrency is done by the holders and the investors of this project.
As a matter of fact, it has been claimed on their website that the share of the members of the developers group of SafeMoon has been burned and has been cleared out of the cycle, so this meme token is a more public than many others.

Automatic Liquidity Supply Mechanism: Another special feature of Safemoon is the automatic Liquidity Supply Mechanism. The platform claims that for every transaction, the liquidity that is needed by the exchange pools is provided mechanically, the technology is introduced as an associate innovation that is developed by the same developers of Safemoon.

Safemoon white paper.

Screenshot of Safemoon

It has been stated on the SAFEMOON be white paper that the newcomers or investors who are new to the DeFi business do not have the access to high-APY LY-farms.
According to the white paper, the SafeMoon project intends to use the knowledge of static rewards (based on the amount of coins traded) to counter the pressure that might be on those tokens that could be generated when selling tokens.

Their White Paper also explainsnthat the “reflection mechanism” is to motivate the holders of Safemoon token to hold their tokens for a long period of time or HODL.

The White Paper also explain that the SafeMoon LP is to stabilize the protocol by making available a price floor the holders of the token.

Screenshot of Safemoon

Still according to Safemoon token's White Paper, the meme token hand burning policy will also provide more help for the SafeMoon token holders in the future.

CONCLUSION

What was regarded as a joke some years ago is no longer a joke right now. The value of meme tokens are really rising and their popularity is becoming very eye-catching. But any investors mist be careful when holding or trading a meme token because some developers of the meme tokens might only be concerned on how to promote the token and make money from it without caring about the sustainability of the project.

There is no doubt that some of the meme tokens are just being developed due to the hype that Dogecoin has gotten. But nevertheless, some of the meme tokens could still turn out to be very benefiting tokens with real-world use cases in future.
Thanks for your time.