US top officials recently launched their meme coins, thanks to which the meme coin phenomenon has reached a whole new level. But beyond the memes, headlines, and hype, what exactly are meme coins, and how do they fit into the broader crypto ecosystem?
The crypto community itself has divided opinions on meme coins. Some believe they distract and even hinder decentralized financial systems, shifting the focus and presenting cryptocurrencies to a broader audience as a form of gambling. On the contrary, others consider meme coins to be the most cryptocurrency-friendly thing, with the value determined by the community itself.
Let's understand this topic dispassionately.
What exactly is a meme coin in crypto?
A meme coin (the spelling "memecoin" is also used) is a digital currency derived from internet memes, jokes, or cultural trends. Unlike cryptocurrencies like Bitcoin or Ethereum, which aim to solve complex problems in finance or technology, meme coins are often created for entertainment or satire. Their value is typically driven by online buzz and social media activity rather than practical use cases or groundbreaking technology.
How do meme coins work?
Meme coins are generally built on blockchain networks such as Solana (the most hyped), Ethereum, or Binance Smart Chain. Developers create tokens using smart contracts, often with minimal technical complexity. This simplicity has led to an explosion of new meme coins.
There are even specialized platforms with intuitive interfaces for launching meme coins. However, even without them, deploying a smart contract with a token is a fairly simple operation.
Meme coins usually have limited utility compared to mainstream cryptos. While some attempt to add utility, such as integrating gaming platforms or NFT marketplaces, many remain speculative assets with little or no tangible use.
Instead, the lifeblood of meme coins is their community. Platforms like Twitter, Reddit, Telegram, and Discord are essential for promoting memes, coordinating activities, and driving demand. A strong, dedicated community can significantly influence the perceived value of a meme coin.
The evolution of meme coins: a short history
The journey of meme coins began in 2013 with the creation of Dogecoin. Inspired by the viral "Doge" meme, Dogecoin started as a lighthearted project but quickly attracted a loyal community. Over time, it transitioned from a niche joke to a well-known cryptocurrency, even receiving public support from celebrities like Elon Musk.
The popularity of Dogecoin paved the way for other meme coins, such as Shiba Inu, Floki Inu, and PepeCoin. Each brought its unique twist, often tapping into internet culture to grow its following.
The first meme coins did have roots in widely known memes. However, these tokens were launched on the Ethereum network, which made transactions with them expensive before they went on CEXes.
The real meme coin boom occurred on the Solana network in 2024. Many crypto-adrenaline junkies, traders, and investors exhausted by the prolonged bear market found solace in meme coins. Thanks to fast transactions and low fees, Solana has become a real meme coin hub and still holds a leading position today.
The massive interest in meme coins has distorted the original idea. The permissionless nature of the blockchain and the ease of launching led to the fact that the same meme could become the basis for many tokens. Literally, everything from memes to real politicians was used to explain the launch of meme coins.
However, in early 2025, the team of US President Donald Trump launched two official memes in a few days: $TRUMP and $MELANIA. This became a genuine sensation, provoking significant fluctuations in the market and predictions that from now on, the legit way to launch memes is open to celebrities.
Popular meme coins
As we said above, some meme coins are a cultural phenomenon. In this section, we have collected well-known meme coins without taking into account their capitalization at the time of writing. To get an idea of the meme coin market cap, visit Coinmarketcap or Coingecko.
Dogecoin ($DOGE)
Founded: 2013
Origins: Based on the popular "Doge" meme featuring a Shiba Inu dog.
Utility: Primarily used for tipping and charitable donations, strongly focusing on community-driven initiatives.
Shiba Inu ($SHIB)
Founded: 2020
Origins: Marketed as the "Dogecoin killer," inspired by the Shiba Inu breed.
Utility: Includes an ecosystem with a decentralized exchange (ShibaSwap) and plans for NFT and gaming integration.
PepeCoin ($PEPE)
Founded: 2023
Origins: Built around the iconic Pepe the Frog internet meme.
Utility: Primarily speculative, focusing on niche internet communities and meme culture.
Floki Inu ($FLOKI)
Founded: 2021
Origins: Named after Elon Musk's dog, Floki.
Utility: Includes plans for a play-to-earn gaming metaverse and NFT ecosystem alongside a robust marketing campaign.
Bonk ($BONK)
Founded: 2024
Origins: It is one of the first major Solana-based meme coins designed to leverage the blockchain's low fees and fast transactions.
Utility: Focused on integration with Solana-based dApps, gaming, and NFTs.
Official Trump ($TRUMP)
Founded: 2025
Origins: Internet sensation, the official fun token from US President Donald Trump, launched a few days before his inauguration.
Utility: Fun token; no other utility has been announced since the launch at the moment of writing.
Pros and Cons of Memecoins
Within the crypto community, opinions on meme coins are divided.
One part of users believe that meme coins are "the worst thing that has happened to the industry" and "the dumbest crypto use case". Meme coins are a disappointment in what Bitcoin, Ethereum, and decentralized finance were invented for. They have limited or no utilities and are highly volatile, which scares away newcomers, who are potentially attracted to crypto and often scam their users, leaving them with nothing.
The other part believes that crypto was created not only for the grand ideas of changing the financial world but is inextricably linked to the Internet culture as a whole, and therefore, meme coins are one of its organic use cases. The idea of meme coins is simple and straightforward, making it easy for new people to onboard. Memes are primarily about community and communication; if someone wants to try their hand at trading, they know exactly what they are getting into.
Which camp do you belong to?
Let's summarize the pros and cons.
Benefits:
Potential for High Returns: Early adopters of meme coins like Dogecoin and Shiba Inu have seen enormous profits.
Community Engagement: Memecoins often foster strong, inclusive communities.
Ease of Access: Typically, meme coins are easy to purchase and have a low cost of entry, attracting first-time investors.
Drawbacks:
Extreme Volatility: Prices can soar or collapse in a short time frame.
Limited or No Utility: Many meme coins, relying solely on hype, lack practical applications.
Fraud Risks: The ease of launching a meme coin has led to an increase in scams and rug pulls.
Investing in meme coins
If you decide to invest in or trade meme coins after considering the risks and benefits above, ensure that you have the following essentials.
Do Your Research: Learn about the project's objectives, community, and planned developments.
Use Trusted Exchanges: Stick to reputable platforms like Binance, Coinbase, or Uniswap. On Solana, check Jupiter, Raydium, Pump.fun.
Secure Your Assets: Store your meme coins in a reliable crypto wallet to protect them from hacks.
Start Small: Given the high risks associated with meme coins, only invest an amount you can afford to lose.
Frequently Asked Questions
What are the most popular meme coins?
Some of the most popular meme coins include Dogecoin, Shiba Inu, PepeCoin, Trump, and Floki Inu. Dogecoin leads in market cap and recognition.
Why Can't You Cash Out Meme Coins?
Cashing out depends on market liquidity and exchange availability. If a meme coin has low trading volume and liquidity, it might be challenging to find buyers.
How Can You Verify a Meme Coin's Legitimacy?
DYOR: Check at least a few sources to confirm the token's legitimacy.
Audits: Check whether the token's smart contract has undergone a security audit.
Transparent Developers: Look for projects with active and identifiable creators.
Community Sentiment: Assess discussions on platforms like Reddit and Twitter for genuine feedback.
Why Do People Invest in Meme Coins?
Investors are drawn to meme coins for speculation, community involvement, and the fun factor of owning a culturally relevant digital asset.
Can Meme Coins Be Profitable?
While some investors have made significant profits, many have lost money due to the speculative nature and volatility of meme coins.
Is Creating a Meme Coin Legal?
Creating a meme coin is generally legal, but engaging in deceptive practices like rug pulls can lead to legal consequences.
Where Can You Buy Meme Coins?
You can purchase popular meme coins on well-known exchanges like Binance or Coinbase. To trade new meme coins in a decentralized manner, you'll need a Web3 wallet like Rabby or Phantom topped up with gas tokens like ETH or SOL. Trading itself can be executed on such platforms as Uniswap (Ethereum ecosystem) or Raydium, Jupiter, and Pump.fun (Solana ecosystem).
Do Meme Coins Have Long-Term Potential?
The future of meme coins hinges on their ability to evolve and deliver value. While many may fade away, some could thrive with strong community support and innovative use cases.
Conclusion
Meme coins have carved out a unique niche in the cryptocurrency world. While they lack the technological depth of projects like Bitcoin or Ethereum, their cultural relevance and community-driven nature make them a compelling topic for crypto enthusiasts. Whether you're a seasoned investor or a curious newcomer, understanding the dynamics of meme coins is vital before taking the plunge.