How to Securely Invest in Meme Coins with Shiba Inu and HUH Token
The notion of meme coins has become one of the most discussed investment prospects in the cryptocurrency industry. With Shiba Inu’s 50,000,000% price increase in the previous year creating millionaires, it served as a reminder of the profitability of these viral internet currencies. New cryptocurrencies look to follow suit, such as HUH token that was released in early December but how can you best take precautions when entering this area of finance.
Before we go into the specifics of what to look for in a trustworthy meme coin, let us first establish the notion of a meme currency.
Meme coins, which were introduced in 2013, are often crypto projects based on meme-worthy topics and animals. Dogecoin (DOGE), the first-ever meme currency, was inspired by the Shiba Inu, a Japanese hunting dog breed based on an image of a smarmy and happy Shiba Inu dog that swept the internet in the early 2010s.
Dogecoin’s success spawned a pack of additional dog-themed currencies, including the self-proclaimed doge killer, which temporarily overtook the former in terms of market valuation early this year.
Meme coins, unlike other cryptocurrencies, are not often assessed based on the usefulness they bring to consumers. HUH Token has taken a novel approach of specifically implementing utility in combination with the viral power of memes to form a new type of ‘utimeme’ cryptocurrency.
Often, the cryptocurrencies capacity to draw significant community interaction is emphasised. In summary, virality is the most crucial aspect in determining the success of meme currencies. With this in mind, how can you tell the difference between genuine and bogus meme coins?
The Project’s Objective
Although the utility is not emphasised, it is a positive indicator when the group supporting the meme currency has something in common other than the goal to create income. For example, HUH Token has plans of creating a social media platform for web3.0 that can help create more authentic income for influencers.
A smaller aspect of utility for the SHIB community is that its members collectively have a passion for Shiba Inu dogs, and one of their goals is to gather funding to rescue stray Shiba Inu pups. Furthermore, in order to give a little more benefit for token holders, the project has gone a step further and implemented a decentralised exchange called ShibaSwap.
As a result, it is vital to investigate the project’s long-term goal and how the project team intends to keep community members involved with the network. Shib and HUH Token does this through clear and consistent communication through their social media profiles and website.
This may also be accomplished by reading the project’s whitepaper, roadmap and keeping up with developments on the official social media channels.
How can you choose these tokens in a secure manner?
Learn how to tell the difference between genuine and phoney meme coins. Over 200 meme currencies are currently competing for the attention of crypto investors. One hundred of them have the word “inu” in their name.
While many seem to be authentic, the vast majority of meme-inspired cryptocurrencies are merely scam initiatives aiming to take advantage of the burgeoning meme coin craze. You may mitigate the risks by ensuring that the project is not vulnerable to rug pull frauds.
Rug pulls, for those who are unfamiliar with the phrase, occur when development teams abruptly sell out all of their coins after pushing up prices. Investors are the ones that get the rug pulled out from under them, leaving them penniless as the value of that currency plummets to nothing. The squid token and the snow dog are two of the most recent instances of meme currencies that allegedly resulted in a rug pull.
Here are some steps you should take to prevent falling victim to this sort of scam:
Avoid currencies in which developers own the majority of the tokens. As previously stated, concentrating meme currencies in the hands of a few investors or the development team is a hazardous undertaking.
Check the legitimacy of the liquidity pools.
Meme coins are often allocated by automated market makers (AMM). This implies that when a token initially debuts, the development team generates a fresh liquidity pool from which investors may acquire the token. Liquidity pools are smart contracts that enable investors to trade cryptocurrencies without requiring a third-party order book or counterparty. For example, an investor would most likely use liquidity pools to trade ETH for a new Ethereum-based currency. The development team must give liquidity to do this. This is accomplished by putting both ETH and a portion of the meme currency into a liquidity pool. Inventors would trade against this liquidity in order to get the freshly issued currency.
The issue is that the liquidity provider, in this instance the development team, has the ability to withdraw liquidity if the required safety mechanism is not in place. When such instances occur, investors are left without a way to exchange a currency that is rapidly losing value.
As a result, it is critical that you only participate in pools maintained by burn address, which indicate that the liquidity has been frozen. HUH Token has done this. Their locked liquidity address can be seen in their whitepaper, which is why it’s always important to read them.
Examine the openness and audit status of meme projects.
Development teams must encourage a clean and transparent environment when it comes to digital assets.
More significantly, the cryptocurrency’s underlying code must be reviewed by a respected third-party software auditing company, such as Certik, to guarantee that the development team did not include back doors that would enable them to launch an exit scam. Completed audits are often published on social media and are readily accessed through an internet search. HUH token has had three independent audits done, which includes Certik, Shellboxes and Solidity Finance.
Always do your own thorough research before making any financial decisions, this article is not financial advice and is intended for educational use only.
Learn More About HUH Token Here:
HUH Official Swap- https://swap.huh.social/