Meme coins and tokens have become a popular and growing sector of the cryptocurrency market, based on internet memes, current events, online communities, and influencers. Following the launch of Dogecoin in 2013, meme coins like Shiba Inu (SHIB) and Dogwifhat (WIF) have proliferated. In 2024, the launch of Solana meme token factory Pump.fun made it quick and easy for people to create meme coins. While originally created as a joke, meme coins have evolved beyond their creators’ intentions, with highly volatile prices shaped by influencers and news cycles.
Meme coins and tokens are cryptocurrencies based on internet memes, with each coin adopting the name and iconography of a popular meme. These coins typically have no inherent value or utility, with some running on their own blockchain while others operate on existing blockchains like Ethereum or Solana. Popular meme tokens include Shibu Inu (SHIB), PepeCoin (PEPE), and Dogwifhat (WIF). The ease of creating cryptocurrencies and the association with influencers have contributed to the popularity of meme tokens.
Meme tokens can be acquired on a variety of crypto exchanges such as Coinbase, Binance, and Kraken, while meme coins like Shiba Inu can also be traded on decentralized exchanges like Uniswap. Often, meme tokens are initially given away to users. Meme tokens have gained popularity due to their strong community support and association with influencers like Tesla chief Elon Musk, who can send prices soaring with a single tweet. However, meme coins are also associated with risks such as limited liquidity and potential rug pulls by developers.
The future of meme coins and tokens looks promising, with the sector continuing to expand as tools to create them become more accessible. Despite regulatory crackdowns in some countries, the influence of crypto influencers on meme coins is unlikely to diminish. Some analysts have suggested the possibility of meme coin exchange-traded funds (ETFs) in the future, highlighting the increasing seriousness of meme coins as a financial asset. Overall, the success of meme coins and tokens depends on the strength of their communities and the ongoing influence of influencers in the crypto market.
