Meme coin
A meme coin (also spelled memecoin) is a cryptocurrency that originated from an Internet meme or has some other humorous characteristic.[1] It is often used interchangeably with the term shitcoin, which typically refers to a cryptocurrency with little to no value, authenticity, or utility.[2] 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 "doge coins", celebrities like Coinye, and pump-and-dump schemes such as BitConnect—or it may be used to make cryptocurrency more accessible. The term is often dismissive, comparing the value or performances of those cryptocurrencies to that of mainstream ones. Supporters, on the other hand, observe that some memecoins have acquired social currency and high market capitalizations.[3]
In late 2013, Dogecoin was released after being created as a joke on the Doge meme by software engineers. This sparked the creation of several subsequent meme coins. In October 2021, there were about 124 meme coins circulating in the market. Notable examples include Dogecoin and Shiba Inu.[3]
In late 2021, advertisements promoting the meme coin Floki Inu in London led to subsequent investigations around promoting the meme coin, considered to be an unregulated financial product by the ASA (The Advertising Standards Authority).[4]
Some countries have taken steps to regulate meme coins. In early 2021, Thailand's Securities and Exchange Commission banned meme coins as part of a crackdown on digital goods with "no clear objective or substance".[5]
Popularity
Meme coins have surged in popularity since Elon Musk endorsed the use of Dogecoin, one of the first meme coins.[6] He continued to post tweets about Dogecoin in 2022, including one in January where he stated he would eat a Happy Meal from McDonald's on live TV if they started accepting Dogecoin as payment.[7] The risk of losing money is significant. However, some projects seem to be successful and sustainable over time.[8]
Meme coins have seen a resurgence after the election of Donald Trump in the 2024 United States presidential election.[9][10][11] One such example is Fartcoin whose valuation briefly surpassed $1 billion dollars in December 2024.[12] Despite its lack of utility or intrinsic value, these inflated valuations made Fartcoin more valuable than legacy public companies such as Office Depot and Guess.[13]
See also
References
- ^ "meme coin - Slang Dictionary". Dictionary.com. 21 October 2021. Archived from the original on 27 July 2022. Retrieved 9 November 2021.
- ^ "What Are Shitcoins and How They Were Traditionally Created". CoinGecko. 20 November 2024. Retrieved 12 December 2024.
- ^ a b "What are meme coins, floki currencies and Dogecoin-killers?". The Times of India. 22 October 2021. Archived from the original on 14 February 2022. Retrieved 9 November 2021.
- ^ Sweney, Mark (17 November 2021). "Watchdog investigates tube adverts for Floki Inu cryptocurrency". The Guardian. Archived from the original on 10 January 2022. Retrieved 10 January 2022.
- ^ Shah, Saqib (14 June 2021). "Thailand bans meme coins and NFTs as part of crypto crackdown". Engadget. Archived from the original on 24 March 2022. Retrieved 11 July 2021.
- ^ Mihindukulasuriya, Regina (12 June 2021). "If Elon Musk wrote this, the headline would be a meme & Dogecoin fortunes would've changed". ThePrint. Archived from the original on 7 February 2022. Retrieved 7 February 2022.
- ^ Bariso, Justin (27 January 2022). "Elon Musk Offered to Eat a Happy Meal on TV. McDonald's Response Was Perfect". Inc.com. Archived from the original on 7 February 2022. Retrieved 7 February 2022.
- ^ Djoufouet, Faustin (5 February 2022). "All about shitcoins". Finance de Demain Consulting. Archived from the original on 16 November 2023. Retrieved 6 August 2022.
- ^ Wile, Rob (15 December 2024). "Memecoins like Fartcoin are riding Trump's victory to huge valuations. Experts say it may have only begun". NBC News. Retrieved 18 December 2024.
- ^ Quinn, Sental (17 December 2024). "Fartcoin rides memecoin surge following Trump's win". Salon.com. Retrieved 18 December 2024.
- ^ Morris, Chris (16 December 2024). "What is Fartcoin? And why is it soaring right now?". Fast Company. Retrieved 18 December 2024.
- ^ "Fartcoin (FRTC)". CoinMarketCap. Retrieved 18 December 2024.
- ^ Enrico, Jose (17 December 2024). "Fartcoin Blows Up: This Ridiculous Meme Crypto Just Surpassed Dogecoin and Shiba Inu". Tech Times. Retrieved 18 December 2024.
External links
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