A meme coin is a type of cryptocurrency that is typically based on internet memes or popular cultural phenomena. Memes are creative content that spreads through the internet and social media, conveying humorous or ironic messages.

Coins and tokens developed from these moments are characterised by a playful nature and an often humorous community that forms around them. The value of traditional cryptocurrencies like Bitcoin or Ethereum is often determined by technical innovations or the underlying blockchain network. In contrast, meme coins derive their value primarily from their virality and social media presence. Famous meme cryptocurrencies like Dogecoin started as jokes.

 Nonetheless, meme coins have shown the potential to reach significant market capitalisation despite their unconventional origins. Their popularity and the associated investment interest are often influenced by prominent personalities or social media trends, leading to very volatile price developments.

Meme coins, often inspired by popular internet phenomena, are coins and tokens of cryptocurrencies that combine pop culture and digital assets. In this guide, we explain what meme coins are, how they work, and the potential and risks associated with investing in these crypto-assets.