Bitcoin is being driven crazy by a new standard known as BRC-20, which basically enables the establishment of new tokens like meme currencies on its blockchain.
Bitcoin and Meme Tokens… A Perfect Match?
Bitcoin has always been a straight-up digital asset. While it has a blockchain network supporting it (like all cryptocurrencies), this network doesn’t necessarily attract developer interest the way something like Ethereum does. Bitcoin, by all accounts, is slow and old-fashioned, whereas Ethereum is new, fresh, and infused with low fees and higher speeds thanks to its many upgrades over the past year.
Meme coins are often built atop the Ethereum network given this is what its blockchain has been built for – the establishment of new applications and currencies. However, things appear to be changing. Developers are suddenly flocking to bitcoin thanks to this new BRC-20 standard, and it looks like the world’s oldest and most popular digital currency is paving the way for a whole new line of assets.
In a recent interview, Andre Serrano – product lead at the Stacks Foundation – commented positively on BRC-20, claiming it could open a whole new string of doors for BTC and ultimately make it comparable to Ethereum. He mentioned:
BRC-20s expand the design space for tokenized assets on bitcoin. They have revealed strong demand for bitcoin block space, which will benefit bitcoin’s security and fee market. While BRC-20s are still in their infancy, infrastructure is rapidly emerging to improve the user experience and functionality, which will likely result in increased interest and adoption for bitcoin.
Not long ago, non-fungible tokens (NFTs) called Ordinals were unveiled on the BTC blockchain thanks to this new protocol, but with the rising popularity of meme coins, it seems these are the assets everyone keeps flocking to and the assets that are ultimately finding new homes on the BTC network.
Among them is a new token called $pepe, which is based on the now popular “Pepe the Frog” meme that’s often tied to conservative groups. The currency is making serious waves and has seen its market cap explode over a very short period.
$pepe Is Getting Big, but It’s Scaring People
Despite this, many listing exchanges and platforms – such as the Gemini exchange in New York – are offering disclaimers on their sites discussing the assorted risks that may come with the asset. Gemini’s disclaimer reads:
$pepe is a new meme token. $pepe has no defined utility. Its value may be derived only from the continued willingness of market participants to demand and trade the token, which may result in the potential for permanent and total loss of value should participants choose to no longer demand or trade $pepe. The token may also be subject to extreme price volatility if large, concentrated holdings of $pepe are liquidated in a short period of time.
