Decoding the full picture of meme coins, the new assets created by internet culture

Meme Coins is a collective term for cryptocurrencies inspired by internet memes and pop culture. Unlike traditional cryptocurrencies like Bitcoin and Ethereum, which focus on solving technical problems, meme coins derive their value from community strength and cultural resonance.

Since the birth of Dogecoin in 2013, the meme coin market has experienced astonishing growth, evolving from a mere joke coin to a market worth hundreds of billions of dollars. This article provides a comprehensive overview, from the essence of meme coins to investment decision-making.

Table of Contents

• What Are Meme Coins?
• Development Process of Meme Coins
• Technological Foundation and Business Model
• Popular Meme Coins to Watch
• Advantages and Risks
• How to Buy and Store
• Market Future Outlook
• Investor Q&A
• Conclusion

What Are Meme Coins?

Understanding the characteristics of meme coins requires recognizing how they differ from conventional cryptocurrencies.

Community-Driven Value Formation

Meme coins are based on internet culture, supported by a strong fan community. Investors and fans gather around the coin’s meme, fostering a sense of camaraderie and insider feeling, which organically drives popularity.

Limited Utility

Most meme coins do not have clear use cases beyond being tradable assets. Unlike utility tokens that grant access to specific services, meme coins rarely offer such functionalities.

Extreme Volatility

Highly speculative, their prices can multiply dozens of times in a short period or plummet over 90% in a single day. Market dynamics are heavily influenced by social media posts or statements from celebrities.

Five Defining Features

1. Based on cultural foundations
2. Community plays a central role
3. Virtually no practical utility
4. Price fluctuations are extremely volatile
5. Directly affected by SNS activity

While some industry critics label them as “cryptocurrencies lacking value or legitimacy,” supporters argue that “some meme coins have gained significant social value and achieved high market caps.”

Development Process of Meme Coins

Dawn: The Rise of Dogecoin

The meme coin market began in late 2013 with the emergence of Dogecoin (DOGE). Created around the popular “Doge” meme on the internet, this joke coin became the prototype for the entire meme coin market.

From 2021 onward, support from Elon Musk significantly boosted its popularity. Dogecoin briefly reached a market cap of $62 billion (about ¥9 trillion), becoming a symbolic leader in the meme coin space.

2021-2022: The Speculation Boom

During 2021 and 2022, the popularity of meme coins surged rapidly. It became clear that prices often fluctuated greatly due to celebrity statements, attracting traders seeking short-term profits.

At the same time, regulators began paying attention. The Thai Securities and Exchange Commission cracked down on digital assets with “no clear purpose or substance,” and the UK’s Advertising Standards Authority investigated meme coin promotions as unregulated financial products.

2024-2025: Political and Institutional Expansion

Following Donald Trump’s victory in the 2024 US presidential election, the meme coin market experienced another surge. The meme coin TRUMP reached a market cap of $27 billion just days after its announcement.

More notably, governments are now issuing meme coins. The President of the Central African Republic announced the national meme coin “CAR,” and Argentine President Javier Milei is promoting “LIBRA,” indicating that meme coins are becoming a matter of national policy.

These examples suggest that meme coins are shifting from mere speculative assets to being recognized as part of national strategies.

Technological Foundation and Business Model

Blockchain Implementation

Meme coins, like other cryptocurrencies, are built on blockchain technology. They operate in a decentralized manner without central authorities, ensuring transparency and tamper resistance.

Most meme coins are created on existing blockchains. A 2024 survey shows Solana and Base as the most used platforms for meme coin development.

Ease of Creation Mechanism

Using token creation tools, individuals or groups can relatively easily issue meme coins. The typical process involves:

1. Preparing a wallet
2. Accessing a token creation tool
3. Setting name, symbol, and issuance amount
4. Paying fees to issue the token
5. Starting promotional activities on SNS and other channels

However, legal risks and the potential for being mistaken for scams mean irresponsible management should be avoided carefully.

Marketing and Market Formation

The growth of the meme coin market depends heavily on marketing and community building rather than technological innovation. Viral campaigns, social media outreach, and celebrity endorsements directly influence price formation.

By early 2025, daily trading volumes exceed $6 billion, functioning as a platform for short-term trading.

Notable Meme Coins

Dogecoin (DOGE)

The origin and largest player in meme coins. With a market cap of about $62 billion, it is supported by a dedicated community and influential supporters like Elon Musk.

In 2025, a Dogecoin-linked ETF was approved in the US, providing institutional investors with new financial products to access meme coins.

Shiba Inu (SHIB)

Following Dogecoin’s success, this dog-themed meme coin has built a substantial community and is now a standard trading asset on multiple exchanges.

Pepe (PEPE)

A coin based on internet memes rooted in youth culture. It is gaining attention as an emerging meme coin.

Trump-Related Tokens

The TRUMP token announced by Donald Trump reached a market cap of $27 billion immediately after launch. Although it has fallen from a high of $70 to around $8 as of September, it still maintains a significant market capitalization.

Tokens related to Melania Trump have also been issued, and the trend of meme coins linked to political figures is expected to grow.

Bonk (BONK)

A relatively new meme coin gaining attention within the Solana ecosystem. Its integration with NFT platforms makes it one of the few meme coins with actual utility. Its market cap has reached around $3 billion.

Government-Related Meme Coins

The Central African Republic’s “CAR” experienced a sharp decline (95%) immediately after issuance, indicating that government issuance does not guarantee success.

Argentina’s “LIBRA” is gaining attention as a policy-oriented meme coin promoting economic growth and support for small businesses.

Advantages and Risks

Investment Advantages

High Return Potential

Thanks to the viral nature and strong community support, meme coins can see significant value increases in a short period. Cases of several times growth within days are common.

Low Entry Barriers

Compared to mainstream cryptocurrencies, meme coins generally have lower costs and are more accessible to beginners. Entry is possible even with limited funds.

Community Solidarity

Joining networks of like-minded fans allows for valuable information exchange and learning opportunities.

Learning Opportunity in Blockchain

In a relatively low-risk environment, investors can understand the basics of the crypto market.

Short-term Trading Opportunities

The high volatility provides abundant daily trading opportunities.

Investment Risks

Extreme Volatility

Price swings are intense and unsuitable for long-term stable investments. Drops of over 90% in a single day are not uncommon.

High Fraud Risk

Pump-and-dump schemes, project abandonment, rug pulls, and other scams have led to significant financial losses.

Limited Utility

Most meme coins lack practical use cases beyond being tradable tokens, resulting in weak long-term value support.

Liquidity Issues

Less popular meme coins often have limited trading volume, and large position liquidations can cause significant price impacts.

Regulatory Uncertainty

As of February 2025, the SEC states that meme coin trading does not fall under federal securities laws, but this stance may change, affecting the entire market.

How to Buy and Store

Preparation Before Purchase

There are multiple ways to buy meme coins.

Exchange Purchase

Major crypto exchanges list popular meme coins like DOGE, SHIB, PEPE, providing relatively stable trading environments.

Decentralized Exchange (DEX) Purchase

Smaller or new meme coins may only be traded on DEXs, requiring a self-managed wallet.

Funding Methods

Credit/Debit Card

The simplest method; using exchanges supporting Visa or Mastercard allows quick deposits.

Bank Transfer

Using exchanges that support international remittance, purchase stablecoins like USDT first, then swap for meme coins.

P2P Trading

Direct user-to-user transactions may offer various payment options.

Secure Storage Strategies

Wallet Options

1. Exchange Wallets: Convenient but riskier due to hacking and exchange insolvency.
2. Software Wallets: Self-managed, but risk of losing private keys.
3. Hardware Wallets: Most secure, but require purchase cost.

For long-term holding, self-managed hardware wallets are recommended.

Market Future Outlook

Emerging Trends

Celebrity-Linked Tokens

An increasing number of meme coins linked to figures like Trump, Melania, and internet celebrities are emerging.

Government Involvement

States are beginning to strategically utilize meme coins, with various policy experiments expected.

Institutionalization

US asset management firms are planning to launch ETFs linked to multiple meme coins, marking institutional entry.

Regulatory Developments

Currently, major regulators do not classify meme coins as securities. However, regulatory approaches vary by country, and more detailed frameworks may emerge.

Integration with Mainstream Finance

Utility Expansion

Future meme coins may incorporate practical use cases beyond speculation.

Cross-Platform Integration

Linkages with gaming, social media, and digital ecosystems could significantly increase their utility.

Technological Evolution

Advances in blockchain tech will likely lead to new generations of meme coins with improved security and functionality.

However, skepticism exists. Noted investor David Einhorn warns, “The meme coin market is just like the NFT craze of 2022—speculative hype with no real value proposition,” and many warn of a market cycle end.

Investor Q&A

What is the definition of meme coins?

A collective term for cryptocurrencies inspired by internet memes and pop culture. Unlike traditional cryptocurrencies supported by utility or technical value, meme coins derive their worth from community and speculative expectations.

Where can I buy meme coins?

Major exchanges list popular meme coins like DOGE, SHIB, PEPE, etc. Smaller or new meme coins may only be available on DEXs.

Can I create my own meme coin?

Technically possible using token creation tools on blockchain. However, legal risks and potential for scams mean careful consideration is necessary.

How to securely store meme coins?

Hardware wallets are safest, but software wallets are practical for convenience. Proper private key management is essential.

What are the fundamental differences between meme coins and traditional cryptocurrencies?

Final Remarks

Meme coins represent a unique phenomenon where internet culture and cryptocurrencies merge, bringing a new dimension to digital finance. While traditional cryptocurrencies emphasize technological utility, meme coins create value through community strength and cultural resonance.

Since Dogecoin’s inception in 2013, the field has grown remarkably, reaching a market size of hundreds of billions of dollars. The emergence of Trump-related tokens and government-issued meme coins suggests this market is evolving beyond a mere fad.

However, meme coin investing remains highly speculative and risky. Successful investors treat meme coins not as mere playthings but as high-risk assets. Maintaining a cool head, setting personal rules, and practicing prudent risk management—starting with small amounts—is the realistic approach.

Whether meme coins remain just speculative assets or develop into a new form of digital value creation depends on future technological progress and community maturity. Monitoring this fascinating space and making informed decisions is crucial.