What is Meme Coin?

Have you ever wondered what memecoin is? These mysterious cryptocurrencies have been taking the internet by storm lately. Buckle up, because I'm about to take you on a journey into the world of digital humor.

Memecoins, although they do not have a clear definition, are primarily playful digital assets. It all started with the Dogecoin movement in 2013.

Note that most meme coins, sometimes less flatteringly called shitcoins (find out what are shitcoins with potential), share several characteristics.

They usually have a gigantic amount of tokens and boast funny graphics. Moreover, their growth is usually driven by large communities.

Interestingly, most of them are like a soda bottle that has no bottom – they serve no specific purpose. Their existence is primarily speculative, which means that choosing “the one” memecoin is like looking for a needle in a haystack.

The prices of meme-based cryptocurrencies rise and fall based on more than just community sentiment and simple hype.

Kyle Doane, a famous trader from Arca, described memecoins as a kind of "lottery ticket". He even compared investing in them to playing in a casino. (2)

While it's still hard for some to believe, the market capitalization of the first memecoin (DOGE) is almost $10 billion! Since its creation, many thousands of other coins have followed suit.

Importantly, the meme coin niche has evolved over time into a form of social movement. Social media has become the driving force behind their development.

Memecoins gain popularity through an engaged community, not through the traditional use of cryptocurrencies. For most of them, usefulness is as rare as a white crow.