Meme Coins: Everything to Know

By  Beluga Research July 6, 2023

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  • Meme coins offer a playful and entertaining approach to digital finance, leveraging internet memes and viral trends to engage users
  • The success of popular meme coins help to attract newcomers and generate speculative returns
  • Popular meme coins help to create decentralized ecosystems facilitated by communities
  • Meme coins can also be extremely volatile and present investment risks


Meme coins, as the name suggests, are cryptocurrencies that derive their value and popularity from internet memes and viral content. With their roots in internet meme culture, memecoins have gained substantial popularity and sparked considerable debates within the cryptocurrency community.

The cryptocurrency market is a dynamic and ever-evolving space. It encompasses a wide range of digital assets, each with its unique features and use cases. Meme coins, however, stand out from the crowd due to their unconventional nature. These coins often gain traction through social media platforms, spreading like wildfire as users rally around memes and slogans. Despite humorous origins, meme coins have garnered significant attention and even achieved substantial market capitalization.

A Brief History

The genesis of meme coins can be traced back to the early days of cryptocurrencies. However, the term "meme coin" gained prominence with the advent of Dogecoin in 2013. Inspired by the popular "Doge" meme featuring a Shiba Inu dog, Dogecoin was created as a lighthearted and fun digital currency. It quickly gained a dedicated following, attracting enthusiasts who appreciated its community-driven ethos and viral appeal.

Following the success of Dogecoin, the floodgates opened for the emergence of numerous meme coins. Notable examples include Shiba Inu, inspired by the Dogecoin success story, and SafeMoon, which introduced unique tokenomics designed to incentivize holders through static rewards and liquidity generation. These coins captured the attention of crypto enthusiasts and investors looking for the next big thing in the market.

What are Meme Coins?

Unlike traditional cryptocurrencies that focus on technology, utility or financial applications, meme coins thrive on the strength of community and viral nature of the memes. They often have catchy names, amusing logos and vibrant online communities that contribute to their appeal.

One key aspect of meme coins is their often-inflationary supply. Unlike Bitcoin, which has a capped supply of 21 million coins, meme coins tend to have significantly larger supplies, sometimes even in the trillions or quadrillions. This allows for smaller unit prices, making them more accessible to a broader range of investors. However, the high supply also means that individual coins may have a lower value compared to other cryptocurrencies.

Meme coins often lack a clear use case or underlying technology. While some may argue that this makes them less valuable, others find the absence of a specific purpose liberating. Meme coins are often seen as a form of digital expression and a way to participate in a community or movement. Owning meme coins can be seen as a statement of support or a symbol of belonging to a particular online tribe.

As with any investment, it is crucial to exercise caution when dealing with meme coins. Due to their speculative nature and the potential for market manipulation, meme coins can be highly volatile and subject to significant price fluctuations. It is essential to thoroughly research and understand the risks involved before investing in meme coins or any other cryptocurrency.

Getting Started

To understand meme coins, it's crucial to grasp the basics of cryptocurrencies. Cryptocurrencies are digital or virtual currencies that use cryptography for security. They operate on decentralized networks known as blockchain which ensures transparency and immutability. Unlike traditional fiat currencies issued by central banks, cryptocurrencies are not controlled by any central authority.

Meme coins, as the name suggests, are cryptocurrencies that are inspired by internet memes or popular culture references. These coins often have unique branding, logos and slogans that resonate with a specific online community. Meme coins are typically created on existing blockchain platforms such as Ethereum or Binance Smart Chain in order to leverage the underlying technology for functionality.

To get started with meme coins, individuals need a digital wallet to store and manage the coins. Wallets come in various forms, including software wallets, hardware wallets and online wallets. Once a wallet is set up, users can acquire meme coins through cryptocurrency exchanges that list them. It's important to note that meme coins, like other cryptocurrencies, can be highly volatile, so it's essential to exercise caution and conduct thorough research before investing.

Unique Aspects

Meme coins possess several unique aspects that distinguish them from other cryptocurrencies. One of the defining characteristics of meme coins is a strong community-driven nature. These coins often gather a passionate following that actively engages in online forums, social media platforms, and dedicated communities. The community plays a significant role in promoting and popularizing meme coins, which contributes to its growth and success.

Another notable aspect of meme coins is their often unconventional and humorous branding. The names, logos and slogans associated with meme coins are designed to capture attention and generate buzz. This distinctive branding helps meme coins stand out in a crowded cryptocurrency market, attracting users with whom the meme or cultural reference resonates.

Furthermore, meme coins often incorporate unique tokenomics to incentivize community participation and provide additional utility. For example, some meme coins implement features like automatic liquidity pools and token redistribution mechanisms. These mechanisms aim to reward holders and discourage large sell-offs, promoting the longevity and stability of a coin.

Meme coins also frequently engage in charitable initiatives or community-driven projects. These initiatives can range from donations to social causes to funding development projects within the meme coin ecosystem. By leveraging strong communities, meme coins can rally support for various endeavors, showcasing the power of decentralized networks and collective action.

Despite their unique aspects, meme coins also face criticism and challenges. Due to their often speculative nature and lack of substantial underlying value, meme coins can be subject to extreme price volatility. Additionally, their association with internet memes and popular culture may lead some to view them as a fad or a speculative bubble. It is important for investors to exercise caution and thoroughly evaluate the fundamentals of meme coins before considering any investment.


  • Community Engagement. Meme coins tend to have active and passionate communities that engage in online discussions, social media campaigns and other activities. This high level of community engagement can create a sense of camaraderie and excitement among investors.
  • Viral Potential. Meme coins often leverage popular internet memes and trends to capture attention. This viral potential can lead to rapid growth in popularity and increased demand for the meme coin, potentially resulting in substantial price appreciation.
  • Accessibility. Many meme coins are built on well-established blockchain platforms. Additionally, the low barriers to entry and affordability of meme coins make them attractive to individuals who may have limited funds to invest.
  • Liquidity . Due to popularity, meme coins often have high trading volumes and liquidity. This means investors can buy or sell meme coin holdings relatively easily without significantly impacting market price.
  • Potential for High Returns. While investing in meme coins carries significant risks, some investors have experienced substantial returns. In certain cases, meme coins have skyrocketed in value over a short period, allowing early investors to make significant profits.


  • Volatility. Meme coins are often known for extreme price volatility. The same factors that can cause rapid price appreciation can also lead to sharp declines. The speculative nature of meme coins makes them highly unpredictable. Investors should be prepared for significant fluctuations in value.
  • Lack of Fundamental Value. Unlike traditional cryptocurrencies or blockchain projects, meme coins often lack clear utility or underlying value. The value is primarily driven by market sentiment and speculation, which can be highly volatile and unpredictable.
  • Potential for Pump and Dump Schemes. Meme coins are susceptible to pump and dump schemes. This is where a group of individuals artificially inflates the price of the coin through coordinated buying and then sells off their holdings, leaving other investors at a loss. These schemes are more prevalent in meme coins due to their speculative nature and lower market regulations.
  • Limited Long-Term Viability . Many meme coins lack long-term sustainability and may fade away over time. The initial hype and excitement surrounding meme coins can diminish as new trends emerge, potentially leading to a decline in value and interest.
  • Lack of Regulation . Meme coins often operate in a regulatory gray area, as they may not fall under the same scrutiny as traditional financial assets. This lack of regulation can expose investors to potential risks, such as fraud or market manipulation.