What are Meme Coins? An In-Depth Analysis of Background, Mechanisms, and Investment Points

What Are Meme Coins

Meme coins are a unique phenomenon where internet culture and digital finance intersect, experiencing rapid growth in the cryptocurrency market.

While traditional cryptocurrencies aim to leverage blockchain technology and address social issues, meme coins are cryptocurrencies based on internet memes and pop culture. They derive their main value from community cohesion and speculative expectations, challenging the conventional definition of cryptocurrencies.

Five Key Features of Meme Coins

1. Cultural Identity: Deeply rooted in internet memes and trending themes, their lightheartedness and creativity shape the coin’s value.

2. Community-Driven Growth: Each project is usually supported by a humorous and enthusiastic community that spreads through social media and viral marketing.

3. Limited Practical Use: Many meme coins lack clear use cases beyond trading on exchanges, which sets them apart from traditional cryptocurrencies.

4. Extreme Volatility: Prices fluctuate wildly, sometimes multiplying several times in days or dropping over 90% in a single day, making them high-risk assets.

5. Social Media Connectivity: Prices are highly influenced by celebrity tweets and trending topics, with rapid information dissemination directly reflected in the market.

History and Evolution of the Meme Coin Market

Dawn: The Birth of Dogecoin

The history of meme coins begins with the launch of Dogecoin(DOGE) in 2013. Originally a joke among internet users, this coin grew to become a significant part of the crypto market.

Since 2021, influential entrepreneurs like Elon Musk have supported Dogecoin, causing its popularity to surge. At one point, its market cap reached around $62 billion.

Turning Point: The Fusion of Politicians and Meme Coins (2024-2025)

The election of Donald Trump in the 2024 US presidential election brought new momentum to the meme coin market. Several Trump-related meme coins emerged, with market caps reaching billions of dollars.

Notably, some governments and national leaders have announced their own meme coins. For example, the President of the Central African Republic announced an official national meme coin, and the President of Argentina promoted $LIBRA , marking a shift from jokes to political and economic discussions at a national level.

Technical Foundations of Meme Coins

Blockchain Implementation

Meme coins are supported by blockchain technology, similar to other cryptocurrencies. Their decentralized structure eliminates central authorities, ensuring transparency and tamper resistance.

Most meme coins are built on existing blockchains. As of 2024, Solana and Base Chain are the most popular platforms for meme coin development, with thousands of meme coins issued within these ecosystems.

Ease of Token Creation

One factor accelerating the growth of meme coins is the ease of token issuance. Even without technical expertise, individuals or groups can create and launch tokens at relatively low cost.

However, this ease of entry also leads to an increase in scams and low-quality projects.

Current Status of Major Meme Coins

Dogecoin (DOGE)

Current Price: $0.14 | Market Cap: $23.59B | 24h Change: +0.17%

The pioneer and largest market cap holder in the meme coin space. Supported by a strong community and major supporters, it maintains relatively stable trading volume despite competition.

In September 2025, a Dogecoin-linked ETF was approved in the US, opening institutional investment channels and significantly impacting market sentiment.

PEPE (PEPE)

Current Price: $0.00 | Market Cap: $2.57B

This coin, themed around the internet meme of Pepe the Frog, represents a newer generation of meme coins. Despite high volatility, it continues to grow supported by a dedicated community.

TRUMP (トランプ)

Current Price: $5.35 | Market Cap: $1.07B

This token, directly announced by Donald Trump, a prominent figure in US politics, saw a rapid increase in value early 2025, reaching a peak of around $70 before settling at current levels.

MELANIA (メラニア)

Current Price: $0.15 | Market Cap: $82.01M

As an example of the spread of Trump-related meme coins, Melania Trump’s coin has also emerged. The connection between political figures and cryptocurrencies reflects the market’s maturation.

BONK (ボンク)

Current Price: $0.00 | Market Cap: $957.56M

A relatively new meme coin launched in 2022, it has gained practical features through integration with NFT platforms. It’s an important project demonstrating use cases within a blockchain ecosystem beyond mere speculation.

CHILLGUY (チルガイ)

Current Price: $0.02 | Market Cap: $23.26M

Based on the meme “A Chill Guy,” this token gained viral popularity in early 2025. Its relaxed branding resonated with community-oriented traders.

Realistic Evaluation of Meme Coin Investment

Investment Advantages

High Return Potential: Due to their viral nature and community cohesion, meme coins can generate significant profits in a short period. Several have increased in value by dozens of times shortly after issuance.

Low Entry Barrier: Compared to traditional cryptocurrencies, the low investment cost makes them accessible to individual investors with limited funds.

Learning Opportunities: Participating in meme coins provides practical insights into blockchain technology, market dynamics, and trading strategies.

Short-term Trading Opportunities: Their large price swings make them suitable for swing trading and day trading.

Investment Risks

Extreme Volatility: Price drops of over 90% in a single day are common, making long-term stable investment strategies unsuitable.

High Scam Risk: The market is rife with project abandonment, pump-and-dump schemes, and outright scams, posing high risks of loss for investors.

Lack of Practical Value: Many meme coins serve only as trading assets without long-term intrinsic value.

Unequal Liquidity: Smaller meme coins often have very low trading volumes, which can cause significant price impacts when liquidating positions.

Regulatory Uncertainty: As of February 2025, the US SEC has indicated that typical meme coin trading does not violate federal securities laws, but regulatory approaches vary by country and may change in the future.

Future Outlook for the Meme Coin Market

Path Toward Institutionalization

In early 2025, several US asset management firms plan to list meme coin-related ETFs, indicating that institutional investors are beginning to enter the market. However, many experts still view this as a “casino-like speculation,” and market maturity remains a topic of debate.

Regulatory Diversity

Regulatory stances vary widely; for example, Thailand’s securities regulator has designated meme coins as prohibited, while the UK is reviewing meme coin advertising restrictions. Future regulations may clarify the legal landscape by country.

Exploring Practical Value

The future growth of the meme coin market depends on whether it can find practical value beyond speculation. Integration with gaming platforms, social media, and other digital ecosystems could lead to new use cases.

Skeptical Perspectives

Several market analysts compare the meme coin phenomenon to the 2022 NFT bubble, warning of similar speculative fervor and potential market corrections.

Practical Guide to Meme Coin Trading

Buying on Cryptocurrency Exchanges

Mainstream meme coins (DOGE, SHIB, PEPE, etc.) are available on multiple major exchanges. Smaller or newer meme coins may only be traded on decentralized exchanges.

Typical purchase steps:

1. Register on an exchange and complete KYC verification
2. Deposit funds via credit card, bank transfer, stablecoins, etc.
3. Search for the target coin in spot trading
4. Place limit or market orders to execute the trade

Secure Storage Methods

Options include exchange wallets, software wallets (MetaMask), and hardware wallets. For long-term holding, self-managed wallets are recommended.

Frequently Asked Questions

Q. Are meme coins suitable for long-term investment?

A. Generally not. Their extreme volatility and limited utility make them unsuitable for long-term holding.

Q. Can I create my own meme coin?

A. Yes. Using token creation tools on blockchain platforms, even with limited technical knowledge, you can create one. However, caution is advised to avoid legal risks and scams.

Q. What is the difference between meme coins and regular cryptocurrencies?

A. They differ in purpose and value sources. Traditional cryptocurrencies aim to solve technical problems or create utility, while meme coins derive value mainly from community and speculative sentiment.

Summary

Meme coins symbolize a new facet of digital finance where internet culture and the cryptocurrency market converge. Since the birth of Dogecoin in 2013, this field has experienced remarkable growth, with total market capitalization reaching hundreds of billions of dollars.

The involvement of politicians and governments in launching meme coins indicates that this market is evolving from a mere trend into a broader social and economic force.

However, meme coin investments remain high-risk assets. Investors should avoid being swept up by market sentiment, establish their own risk management rules, and participate with small amounts.

The true value of meme coins depends on whether they can evolve from mere speculative assets into innovative applications of blockchain technology. Monitoring future technological advancements and community development is essential for making wise investment decisions.