Meme coins are cryptocurrencies that originate from internet memes or have humorous characteristics. Unlike traditional cryptocurrencies that often have defined use cases or technological foundations, meme coins typically lack intrinsic value and derive their price mainly from community hype and social media momentum
. They are usually created to follow trends, employ humor, and build a sense of community among users. Examples of popular meme coins include Dogecoin, Shiba Inu, and Pepe, which together represent a significant portion of the meme coin market
. Meme coins work like other cryptocurrencies in that they are tokens created on existing blockchains and are tradable on decentralized or centralized exchanges. However, most meme coins do not have utility beyond being tradable assets and rely heavily on speculation and viral popularity for their value
. The market for meme coins is highly volatile and risky. Their prices can skyrocket rapidly due to hype and fear of missing out (FOMO), but these gains are often unsustainable, leading to sharp price collapses when interest wanes
. Meme coins also create strong, often humorous communities that foster a sense of belonging among investors and fans. Their popularity can be boosted by endorsements from celebrities or social media influencers, which can lead to rapid increases in value
. In summary, meme coins are cryptocurrencies inspired by internet memes and culture, characterized by speculative trading, community-driven hype, and high volatility, often without fundamental technological backing or utility
