Briefly:

• Meme coins and tokens are projects that went viral for making fun of existing crypto projects.

• With no real-world utility and value addition to blockchain, meme coins and tokens see inevitable threats from fintech and retail giants. They are more prone to rug pulls and being outperformed by new competitors joining market.

• BlackHoleDAO (BHO) is an asset management protocol based on new standard in the DeFi 3.0. BHO adds great value proposition to existing DeFi 3.0 and 4.0 with innovative models, making BHO an emerging leader of the space.

If you have been in the crypto DeFi space for a while, you have probably seen the rise and fall of many joke / meme coins and tokens. Several rug-pulls effecting millions has been seen and many more threats to the idea of meme tokens exist.

With the wide adoption of cryptocurrencies due to mainstreaming, new and existing factors will decide how and who will go forward with the market. These new factors will limit many tokens that do not add any value to blockchain or utility to the people.

 What are Memecoins? What is DOGE and SHIB?

Crypto has always revolved around influencers and artists big time, but never so much as right now. When an influencer supports a token or coin, it is adapted rapidly by his/her followers. That is what happened when Elon Musk tweeted multiple times in support of the original meme coin, the Dogecoin. It grew exponentially and many similar coins popped up. Meme coins and tokens are based on Internet Memes, current events, online communities, and influencers.

A meme coin has no inherent value because these are mostly – but not always – themed around memes as the name suggests.

There are multiple famous meme coins and tokens right now. However, the first meme coin, DOGE (Dogecoin) runs on its own blockchain, which differs it from other meme tokens because they are based on top of an existing blockchain like Ethereum. DOGE is based on the viral internet meme of a Shiba Inu dog. The project was aimed at making fun of exiting crypto projects but got crazy adaptation which led to its strong community.

Other meme tokens include DOGE-copycat SHIB (Shiba Inu) which is based on the same viral meme but unlike DOGE is compatible with the Ethereum Network, which has allowed the community to create crypto apps, and connect to Ethereum Wallets like Coinbase. SHIB is an ERC-20 token that is available on decentralized exchanges (DEX).

Dogecoin (DOGE)

Dogecoin which was invented to poke fun at cryptocurrency projects by Jackson Palmer, the co-inventor of the coin. This started as a complete joke but saw huge value when Elon Musk started promoting it on his twitter.

DOGE hit a market cap of $9 Billion at its peak in January 2021.

Elon Musk with who’s support, it went viral, is now working with the team to make it more usable and optimize it for paying goods.

Shibu Inu Coin (SHIB)

Shibu Inu started in April 2021 recognizing itself as an “Experiment in decentralized spontaneous community building” and quickly saw value growth by around 2,000,000%. It reached its all time high, in May later the same year.

SHIB has mostly benefited because of Dogecoin and has a total supply of one quadrillion which is a huge value. In the future, the Shiba community plans to release an NFT platform and DAO-based governance system for the Shiba ecosystem (called “DoggyDAO”).

Why do users like meme coins despite their no use?

Despite its no use scenario, and no real value addition to the blockchain, crypto meme coin and tokens has still managed to develop strong communities and fan base. People often confuse its fan base with great value proposition but that is not how it works.

Meme coins and tokens possess inevitable threats. With cryptocurrency going mainstream, real-world utility will be the most important factor to move forward. Cryptocurrencies with greater real-world utility will significantly outperform those with less or no utility at all (like meme coins and tokens)

With fintech giants like Paypal Holdings and retail companies such as Walmart jumping on the bandwagon of cryptocurrency adoption, and announcing their own stable coins, people will transition very quickly to more practical coins like the ones discussed.

As for the ever-growing communities of meme coins, it’s evident obviously that memes are mainly community centered and are a great source of bringing people together but then again not everyone thinks they are funny. For example, Thailand’s cryptocurrency regulators ordered the delisting of meme tokens and NFTs fan token in June 2021 because they do not “see any value” of the tokens.

There is also a greater risk of fraud (“rug pulls”) with these tokens because well they are mainly joke coins. Mark Cuban, the seasoned investor has been a victim to this.

Barring more regulations like that of Thailand, meme coins and tokens may possibly be allowed for listing only in few countries, limiting its growth. Indeed, meme coins usually have a good story and they’re good at telling it to the community. If someone can add the actual value to a meme coin, that woud change the whole picture.

BlackHoleDAO (BHO) is actually valuable and adopted in different use cases, taking advantage of the rapid spearding of a memo coin to drive the development of the project itself.

 Unlike meme coins, BlackHoleDAO presents great value potential.

The gradual decentralization of traditional finance is no longer a castle in the air, DeFi is now a reality, and more people need it. It not only empowers the poor but provides transparency and fair financing to the developed. DeFi however, still faces a number of challenges today, but greater challenges provide greater opportunities. We saw the adoption of DeFi 1.0, then DeFi 2.0 and now we are preparing for DeFi 3.0 or 4.0.

DeFi 1.0 gave us decentralized exchanges (DEX) like Uniswap (predecessors of BHO) and Sushi, but it had multiple problems. Some problems with DeFi 1.0 were High Threshold and High Potential Risks which made it “Not very Friendly to Common People”. Obtaining high APY took considerable time and effort and had common disasters such as “mining disaster”.

Then came along DeFi 2.0 and successfully achieving “protocol-controlled liquidity” in less than 6 months, solving the problem of unstable liquidity in DeFi 1.0. This was icebreaking for DeFi 2.0 however protocol-controlled liquidity represented by Olympus (OHM) mainly solves the capital efficiency problem of DeFi 1.0, but fails to produce sustainable yields this is a problem commonly known as High Inflation Brought by High APYs.

What’s BlackHoleDAO (BHO) – the leader of DeFi 3.0?

BlackHoleDAO is a decentralized asset management protocol based on DAO governance. It is based on a completely new DeFi 3.0 standardized model called “BlackHoleDAO Protocol (BHDP). The BHDP burn mechanism resolves the imbalance between high inflation and deflation in the market by referring to the traditional stock market splitting and merging principle.

BlackHoleDAO can be interpreted simply as a service protocol for enterprise asset management, which includes the splitting and merging function, while providing the unsecured credit loan services based on itself.

BHO, being pioneer of DeFi 3.0, provides Lower threshold for Use  and sets a certain percentage of transaction tax (buy/sell) which is the underlying innovation that DeFi 3.0 is making.

Innovations BHO will make to DeFi 4.0?

Based on DeFi 3.0+, BlackHoleDAO formulates corresponding farming strategies to generate profits through the protocol, provides farming as a service, and returns profits to token holders, which aims to lower the threshold for common investors to participate and provide secure and generous farming returns.

BlackHoleDAO has multiple functional protocols such as VC-Pool, Transaction tax, Donation Pool, Black Hole Reactor, and DAOs Ranking, each of which has a clear purpose. The protocols are interdependent and create an open and highly composable asset management protocol infrastructure.

The Takeaway – Why adopt BHO right now?

Based on DeFi 3.0+, BlackHoleDAO formulates corresponding farming strategies to generate profits through the protocol, provides farming as a service, and returns profits to token holders, which aims to lower the threshold for common investors to participate and provide secure and generous farming returns.

BlackHoleDAO has multiple functional protocols such as VC-Pool, Transaction tax, Donation Pool, Black Hole Reactor, and DAOs Ranking, each of which has a clear purpose. The protocols are interdependent and create an open and highly composable asset management protocol infrastructure.

Unlike the meme coins and tokens, adopting BHO right now will put you miles ahead on your journey of mastering the next iteration of decentralized finance. With help of BlackHoleDAO, you can be the next millionaire.

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