Meme coins
By Geoffrey Lyons
Meme coins or meme tokens are cryptocurrencies based on internet memes.
In its broadest sense, a meme (from the Greek mimēma “that which is imitated” + gene) is any cultural phenomenon (e.g. a fashion trend or catchphrase) that has the ability to propagate and potentially achieve viral status.
But the most common use of “meme” refers to internet memes, which are characterized by criteria beyond just virality. These memes tend to be visual, humorous, and often subversive. Perhaps most importantly, they can be repurposed–a feature that has become central to the internet’s participatory culture.
Sign up to our weekly MoonPay Minute newsletter
Popular meme coins and their roots
In 2013, a photograph of a Shiba Inu named Kabosu went viral, giving rise to the “Doge” meme. Four of the top meme coins are based on Doge. FLOKI draws inspiration from Elon Musk’s Shiba Inu, who is named after a character in the TV show Vikings.
Spotlight on PEPE
In 2005, cartoonist Matt Furie introduced Pepe the Frog, a comic book character that gained widespread popularity just a few years later. While Pepe briefly faced controversy due to misuse by some far-right extremists, Furie vehemently opposed such behavior and even pursued legal action. Pepe remains an iconic meme, and the meme coin PEPE was launched in 2023.
What you should know about meme coins
Highly speculative - Investing in meme coins is risky due to their volatility
No intrinsic value - The value of most meme coins is based solely on cultural popularity
Strong communities - Meme coin projects often boast passionate and committed communities
Potentially unsustainable - Meme coins could fail when their underlying meme loses cultural relevance
Network effect - Some argue that the pre-existing popularity of memes like Doge can help draw newbies to crypto
Should meme coins be taken seriously?
Yes and no. On the one hand their origins are profoundly unserious. Dogecoin, for example, didn’t just start as a joke–its aim was to be “as ridiculous as possible.” On the other hand, the market performance of some meme coins is no laughing matter.
It would be one thing if SHIB, for example, faded into obscurity following its near fivefold price increase in 2021, but it hasn’t. SHIB continues to rank in the top cryptocurrencies by market capitalization. Because of these contradictions, meme coins continue to be a bit of an enigma.
Subscribe to our newsletter!
Did you like this article? Sign up to our weekly MoonPay Minute newsletter to get similar content delivered directly to your inbox.
