Is this crypto's dumbest use case?

Memecoins were an internet joke – before Donald Trump got involved

Hi all,

Have you ever wondered what would happen if internet memes and cryptocurrency had a baby? That's what memecoins are in a nutshell.

Let's have a look at this weird corner of the crypto world and explore why these digital tokens are making headlines (and fortunes).

What are memecoins?

Memecoins are cryptocurrencies which are inspired by internet memes, jokes, or popular culture references. They are not like "real" – and certainly more serious – cryptocurrencies like Bitcoin or Ethereum. By and large, these were created to solve real-world problems. Memecoins, on the other hand, started as a humorous take on the crypto world itself.

Key characteristics of memecoins include:

  • Extreme volatility

  • A lack of fundamental utility

  • Highly speculative nature

 Before the more recent hype around memecoins, they often had a humorous or satirical origin and more or less strong community support. These characteristics, however, have been watered down – more on that below.

Example:  Dogecoin – from joke to riches

To understand memecoins better, let's look at the poster child of this phenomenon: Dogecoin (DOGE).

Dogecoin was created in 2013 by software engineers Billy Markus and Jackson Palmer as a joke. They took the popular "Doge" meme featuring a Shiba Inu dog and turned it into a cryptocurrency. Markus and Palmer wanted to create a more approachable and less serious alternative to Bitcoin. 

What happened next surprised everyone. Dogecoin gained a massive following and even caught the attention of celebrities like Elon Musk. When Musk first tweeted about Dogecoin, its value soared immediately by 20%. In January 2025, Dogecoin reached a market cap of more than $60 billion. It is even accepted as a form of payment by some companies.

And in an interesting twist, DOGE is now also the shortcut for the new “Department of Government Efficiency”, established by US President Donald Trump through an Executive Order.

Who can launch a memecoin?

If Donald Trump can launch a memecoin, you may think that it can't be complicated. And you're right. You should have some technical know-how and some idea about cryptocurrencies. You definitely don't need a big corporation – and you don't have to be a tech genius either.

The basic requirements:

  • Some understanding of blockchain tech

  • A platform to launch your coin (you can find different services for various blockchains)

 Doesn't sound very hard, right? Well, it would also help to have a catchy concept – or at least a community to support and promote your coin. That's why it's useful to have celebrity status.

Turning memecoins into real profits

It's important to note that the cryptocurrency market is highly volatile and risky at the best of times. When you're actually launching a memecoin, however, you don't have to worry about that. You're creating a digital assets out of thin air, the financial risk is therefore limited to the potential fees which are paid to the launch platform.

That's why there's such a hype around memecoins. When you're successful in creating hype through social media and online communities, the buzz around your memecoin can lead to big profits. Why? Because of two aspects:

Initial distribution: Creators usually reserve a significant portion of the overall distribution for themselves before making the rest available for sale.

Price appreciation: If your memecoin gains popularity, it creates demand. When you keep the supply limited, the value can increase dramatically – which generates even more interest.

That doesn't sound like a sustainable strategy? Absolutely right. However, as an early holder (or even better, as the creator), you should have sold enough coins to secure a solid profit.

It almost sounds too good to be true, and it is in the vast majority of cases. Stories of overnight millionaires and celebrities raking in lots of money are enticing but they're the exception rather than the rule. Many more memecoins fail to gain any traction with potential buyers.

Conclusion

On the plus side, memecoins represent a unique intersection of internet culture and finance. They've shown us that in the world of cryptocurrency, a sense of humor and some kind of community can be just as valuable as utility and technology.

However, as with all investments, it's crucial to approach memecoins with caution. You should definitely not expect any profits. The general rule is therefore to not spend more than you can afford to lose.

That said, you might be interested in buying a specific memecoin – or a "celebrity coin" – as a show of support or just for fun. After all, many other forms of more traditional merchandise items are not an investment either.

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That’s the end for today! 😢

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