The cryptocurrency market is home to hundreds, if not thousands, of coins catering to every taste and preference. Yet, no matter how many new trends emerge in the digital asset industry, one of the most enduringly popular categories remains meme coins.
In this comprehensive guide, you’ll learn what meme coins are, their origins, and whether they’re worth investing in.
Definition and History of Meme Coins
Meme coins are cryptocurrencies inspired by popular internet memes that are widely recognised on social media platforms. These coins lack any intrinsic value and rely solely on community interest to drive their prices. This reliance on social sentiment is what sets them apart and defines their unique nature.
The Emergence of Dogecoin and Its Role
Dogecoin (DOGE) holds a special place in the history of meme tokens as the first and most well-known example. It was launched in 2013, inspired by the viral Shiba Inu meme (yes, the one Elon Musk loves). The coin was created by two developers, Billy Markus and Jackson Palmer.
Doge Meme. Source: Wikipedia
Initially, Dogecoin wasn’t taken seriously, but its humorous concept and strong community support helped it pioneer a new category of cryptocurrencies.
By late 2013, Dogecoin traded on exchanges for as little as $0.0003–$0.0007. By mid-2018, its price surpassed $0.01 for the first time, and in May 2021, it briefly peaked at $0.74. At the time of writing this guide, DOGE is valued at $0.37.
The Rise of Other Popular Meme Coins
Shiba Inu was launched in August 2020 as a competitor to Dogecoin. The project’s founders described SHIB as an experiment, but within months, it gained traction as a popular meme coin.
SHIB’s growing popularity among investors earned it the nickname “Dogecoin killer.” Today, the SHIB team is actively expanding the project’s ecosystem, making it a compelling option for those considering meme coins as an investment.
SHIB Logo. Source: Crypto Logos
Floki Inu, an unconventional meme coin, was introduced in July 2021. The token exists in two standards: ERC-20 and BEP-20. Unlike traditional meme coins, FLOKI offers real-world use cases. It can be used for payments on gaming platforms such as FlokiPlaces, FlokiFi, and Valhalla.
FLOKI Logo: Crypto Logos
Why Are Meme Coins So Popular?
Investors are drawn to meme coins for various reasons. Some find them appealing due to the potential for rapid growth. Others are intrigued by their high volatility, which offers opportunities for profitable intraday trading. Meanwhile, some simply enjoy the lighthearted nature of meme coins, seeing them as a refreshing contrast to the often overly serious cryptocurrency industry, or they collect items tied to their favourite memes.
Top Meme Coins by Market Capitalisation as of 16 January 2025. Source: CoinMarketCap
The Role of Community and Social Media
Social media plays a pivotal role in the popularity of meme coins. Platforms like Twitter, Reddit, and TikTok have become key hubs where users share memes, ideas, and investment strategies. Meme coin communities are known for their cohesion and enthusiasm, which helps sustain interest in these assets.
The Influence of Celebrities and Marketing Campaigns
Celebrities such as Elon Musk have frequently endorsed meme coins, driving sharp increases in their prices. Musk, who famously referred to Dogecoin as his "favourite cryptocurrency," has become a symbol of celebrity influence in the market. Marketing campaigns that leverage humour and memes also play a significant role in attracting attention to these projects.
Risks and Benefits of Investing in Meme Coins
High Volatility and Speculation
The prices of meme coins can skyrocket and plummet just as quickly. They are heavily influenced by the sentiment of the crypto community or external events, such as statements from major asset holders. This makes them highly unpredictable.
For example, Elon Musk’s tweets in support of Dogecoin caused its price to surge by 20,000% in a single year. However, investors who expected further growth and bought DOGE at $0.75 are now facing significant losses.
Potential Scams and Rug Pulls
A "rug pull" is a form of crypto fraud where developers pump the price of a new coin and then vanish with investors' money. Unfortunate investors are left holding worthless tokens with no intrinsic value or future.
This is exactly what happened with the SQUID meme coin, inspired by Netflix’s popular series Squid Game. After a sharp price increase, the creators of SQUID cashed out their tokens and disappeared. The coin lost 99.9% of its value, and holders found themselves unable to sell their tokens due to imposed restrictions.
How to Invest in Meme Coins Safely
It’s important to remember that meme coins are an extremely risky asset. Investing large sums in a trending cryptocurrency could just as easily make someone wealthy as it could leave them with nothing. Trading meme coins might be a viable option for more experienced traders, but there are some universal tips to help keep a cool head and approach the idea of trading meme coins with the utmost caution.
1. Researching the Project and Team. Before investing, it’s essential to research the project thoroughly: its goals, roadmap, and team. A trustworthy project will clearly communicate its mission and provide transparent information about its developers.
2. Diversification and Risk Management. One of the key principles of safe investing is diversification. Avoid putting all your funds into a single meme coin. Instead, spread your assets across different types of cryptocurrencies to reduce risk.
3. Using Tools to Protect Investments. There are tools available on the market to help minimise risks, such as trailing stop-loss orders. Using these tools can provide an extra layer of security.
‼️ Important: This article is not financial or investment advice. Always remember that you are solely responsible for your financial investments. The itez team does not encourage you to invest in the digital assets mentioned in this article or any others.
The Future of Meme Coins
In recent years, meme coins have gained widespread recognition, largely thanks to Dogecoin. While no other project has yet reached the same heights, new meme coins continue to emerge due to their ease of creation.
The developers behind the leading meme coins are increasingly focusing on their utility and potential applications, such as integration into Web3 games. They are also working to expand the functionality of tokens by introducing new features. These advancements could redefine the nature of meme coins and lead this category of cryptocurrencies into an exciting future.
🤔 What do you think about meme coins future? Share your views in our socials!
💌 Telegram, Twitter, Instagram, Facebook
Here are three other cool articles:
Crypto scam: how to protect yourself
Top 5 Crypto Events That Shaped the Market Momentum in 2024
This article is not investment advice or a recommendation to purchase any specific product or service. The financial transactions mentioned in the article are not a guide to action. It’s not intended to constitute a comprehensive statement of all possible risks. You should independently conduct an analysis on the basis of which it will be possible to draw conclusions and make decisions about making any operations with cryptocurrency.
