New types of currencies have been circulating since the beginning of the stock market. The first cryptocurrency, Bitcoin, was mined in 2009 and sparked a whole new way to invest. In 2013, a new concept called a meme coin was launched as a parody of a Bitcoin. Since then meme coins have only grown in investors.
Meme coins are a type of cryptocurrency inspired by memes, characters and trends. These coins are supported by enthusiasm from users on the internet, such as Dogecoin, Shiba Inu and Pepe coins.
Pepe is a stereotypical meme coin inspired by an emote from Twitch called Pepega. The emote is a version of Pepe the Frog, which was created by the cartoon “Boys Club.” POPCAT coins derived from the meme of a cat with a large mouth known as “Popcat.” It aims to capitalize on the popularity and humor of cat memes.
The online coins have a few characteristics, such as needing to be satirical and have a community-created origin. The coins also do not have any substantial technological advancements or impacts; the coins thrive on community appeal and engagement, one of the reasons why each one is highly speculative.
Meme coins can be purchased on platforms like Best Wallet, Margex or Binance, and the coins are often seen as a fun way to learn how to invest in cryptocurrency and blockchain technology. Meme coins are much less expensive than regular cryptocurrencies, so there is less risk if you only get one.
Even though the coins are experimental at times, meme coins have significant value with a daily trading volume of $13 billion and a total value of $600 billion.
Despite the value, this type of currency is considered risky and volatile. Some coins can be seen as jokes, but some investors take the coins seriously. Some countries have actually taken steps to regulate meme coins because of the lack of structure and support the coins give to buyers.
Meme coins have become popularized by public figures and the role of the coins in digital culture. Social media users such as Elon Musk and Mason Versluis use digital storytelling and challenges to get their followers to buy into what they are trying to sell.
The promises of big performance get people into buying meme coins. Unfortunately, 76% of the meme coins influencers promoted are now defunct and worthless.
There is also a high association between meme coins and crime. Many people have created fraudulent companies selling fake meme coins and just taking investors’ money.
In late January, Dean Norris had his X account hacked when scammers tried to promote a new meme coin called $DEAN. This coin reached a market cap of $8.5 million but plummeted to $51,000 in two days.
During the takeover, the scammers created fake images of Norris to try and get fans to believe that he was the one selling this cryptocurrency and many people believed them. Norris got his account back and revealed the truth, but not before people believed that he would scam them.
Another questionable meme coin came from Hailey Welch when she created $HAWK tokens. At the end of 2024, Welch became viral for answering interview questions with her catchphrase, “Hawk-tuah.” From this, she launched her own merchandise and marketed off this popularity.
When she launched her own meme coin, it rose to a $490 million market cap but tanked within hours. Due to the millions of dollars lost by investors, Welch is currently being sued.
Despite the risks, the currency still has a high chance of success and people have not slowed their investments.
The most popular meme coin is Dogecoin, and it is also the first one to have existed. The currency, created by Jackson Palmer and Billy Markyss as an approachable cryptocurrency and features the Shiba Una dog, is now worth 21 cents. In 2021, Musk endorsed Dogecoin and caused a significant price increase.
On Jan. 20, President Donald Trump implemented an executive order that established the Department of Government Efficiency. The order was based around digital services including cryptocurrency. The connection between the order, Dogecoin and Elon Musk sparked a rise in Dogecoin once again.
A new meme coin was launched by CIC Digital Jan. 17 with Trump called $Trump. It immediately gained traction, reaching a peak of $14.5 billion by Jan. 19. The currency quickly deflated after Trump’s inauguration.
With high risk and high return, meme coins are very tricky currencies to invest in. As the coins revolve around politics and the community’s sense of humor, meme coins are always changing and take unexpected turns.