Meme coin

A meme coin (also spelled memecoin) is a cryptocurrency that originated from an internet meme or has some other humorous characteristic.

The term is sometimes used interchangeably with the term shitcoin, which typically refers to a cryptocurrency with little to no value, authenticity, or utility. It may be used in the broadest sense as a critique of the cryptocurrency market in its entirety — those based on particular memes such as Dogecoin, celebrities like Coinye, and pump-and-dump schemes such as BitConnect — or it may be used to make cryptocurrency more accessible.

Unlike traditional cryptocurrencies with defined use cases or technological foundations, meme coins often lack intrinsic value and derive their price primarily from community hype, social media momentum, and celebrity association. Their prices can skyrocket rapidly as new investors, drawn by viral attention or fear of missing out (FOMO), pour in funds. However, this growth is typically unsustainable, as the price depends heavily on a continuous influx of new buyers. When interest wanes or new investment slows, meme coins frequently experience sharp collapses, as there is little fundamental value to support their market capitalization, much like how Ponzi schemes rely on new capital to pay returns to earlier investors.

The term is often used dismissively, comparing the value or performance of those cryptocurrencies to that of mainstream digital assets. Supporters, on the other hand, observe that some memecoins have acquired social currency and high market capitalizations.