The term is sometimes used interchangeably with the term shitcoin, which typically refers to a cryptocurrency with little to no value, authenticity, or utility.[2] It may be used in the broadest sense as a critique of the cryptocurrency market in its entirety — those based on particular memes such as Dogecoin, celebrities like Coinye, and pump-and-dump schemes such as BitConnect — or it may be used to make cryptocurrency more accessible.[3]
Meme coins derive their price primarily from social media momentum and celebrity association.[4] Their prices can skyrocket rapidly as new investors, drawn by viral attention or fear of missing out (FOMO), pour in funds. However, this growth is typically unsustainable, as the price depends heavily on a continuous influx of new buyers. When interest wanes or new investment slows, meme coins frequently experience sharp collapses, as there is little fundamental value to support their market capitalization, much like how Ponzi schemes rely on new capital to pay returns to earlier investors.[5]
The term is often used dismissively, comparing the value or performance of those cryptocurrencies to that of mainstream digital assets. Supporters, on the other hand, observe that some memecoins have acquired social currency and high market capitalizations.[3]
History
In late 2013, Dogecoin was released after being created as a joke on the Doge meme by software engineers. This sparked the creation of more meme coins. In October 2021, there were 124 meme coins circulating. Notable examples include Dogecoin and Shiba Inu.[3]
In early 2021, Thailand's Securities and Exchange Commission banned meme coins as part of a crackdown on digital goods with "no clear objective or substance".[6] In late 2021, advertisements promoting the meme coin Floki Inu in London led to investigations around promoting the meme coin, considered to be an unregulated financial product by the United Kingdom Advertising Standards Authority (ASA).[7]
Graph of the value of the TRUMP meme coin from January 18, 2025 to April 1, 2025. About 764,000 people who invested after the all time high (ATH) on Jan. 19 have lost money. This is a typical price graph for many meme coins.
Meme coins increased in popularity in 2021 and 2022 when Elon Musk endorsed Dogecoin, one of the first meme coins.[9] He posted several tweets about the coin, including saying that Tesla-branded merchandise could be purchased with Dogecoin.[10][11] Musk was sued by investors who accused him of using Dogecoin as an unregistered security to operate a pyramid scheme.[12][13]
In February 2025, the President of the Central African Republic, Faustin-Archange Touadéra, announced a national memecoin, $CAR, on his official X account.[20] Soon after its launch, the project's X account was suspended amid questions about its legitimacy and because the announcement video had previously been flagged as a deepfake.[20] Despite continued promotion from Touadéra via his verified X account, the value of $CAR dropped by 95% on February 11—just one day after trading began.[20]
In December 2024, Haliey Welch, who became viral online for the "hawk tuah" meme, issued $HAWK and it reached a peak of $490 million before plummeting to $25 million. She was accused of promoting a pump-and-dump as well as engaging in a rug pull scheme and insider trading.[21]
During the memecoin frenzy of early 2025, hackers hijacked verified government X accounts, including those of the Cuban government, former Malaysian PMMahathir Mohamad, and Bihar’s Water Resource Department, to promote fraudulent memecoins like "CUBA" and "MALAYSIA" on platforms like Pump.fun. These tokens surged before crashing, with CUBA's volume dropping from $158.7M to $4.3M and MALAYSIA's rug pull draining $1.7M. The Catholic News Agency and German President's Frank-Walter Steinmeier's accounts were also compromised to push similar scams by repurposing them to impersonate various figures promoting tokens.[22][23][24]
On 15 April 2025, hackers compromised UK Government Minister Lucy Powell's verified X account to promote a fraudulent "House of Commons" cryptocurrency ($HCC), using deleted posts with the House of Commons logo to tout it as a "community-driven digital currency."[25]
Commentators have compared meme coins with the speculative frenzy and collapse of the NFT market in 2022. American investor David Einhorn stated that, "We have reached the ‘Fartcoin’ stage of the market cycle ... Other than trading and speculation, it serves no other obvious purpose and fulfills no need that is not served elsewhere."[27] In February, more than 700 different copycat and spam coins were sent to Trump's digital wallet by people apparently seeking to falsely suggest they had his endorsement.[28]
Created as a satirical critique of the 2013 cryptocurrency boom and later boosted by celebrity promotion (notably Elon Musk).[29] Musk-related posts were associated with surges in trading and price.[30] In November 2024, Dogecoin spiked after Trump announced a "Department of Government Efficiency" (DOGE).[31][32]
Solana dog-themed memecoin launched December 2022. Reported market cap around US$3 billion during late-2024 memecoin rally; described as created after the collapse of FTX to cheer up Solana traders.[39]
Launched during the memecoin boom in late 2023 as a dog-themed token, Dogwifhat drew widespread attention after Stratos, a firm based in Newport Beach, California, launched a liquid fund that held the token as an investment.[40]
Solana-based token inspired by "Peanut" (an orphaned squirrel euthanised by New York State authorities), it was launched during the memecoin boom after the 2024 U.S. election.[39]
Started trading in late October 2024 and was reported at nearly a US$800 million market cap by mid-December 2024.[42][15][17]The Guardian reported a peak market capitalisation of more than US$2.3 billion.[43]
Launched by Donald Trump on January 17, 2025; Reuters reported a peak market value over US$14.5 billion by January 19, 2025, followed by a large decline.[44] The launch and subsequent losses were widely reported and scrutinized.[45][32]
Launched January 19, 2025 by Melania Trump.[46] Reported market cap around US$2.2 billion shortly after launch.[47] Bloomberg reported the coin was down about 90% from its peak by February 6, 2025.[48][32]
Promoted by Argentine president Javier Milei beginning February 14, 2025; the launch drew controversy and legal scrutiny after a rapid collapse in value.[50][51] Reuters cited researchers describing a peak valuation around US$4.5 billion before it crashed.[52]
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