Memecoin
Also called: meme coin · meme token
Definition
A memecoin is a cryptocurrency inspired by an internet joke, animal or cultural trend, whose price is driven mainly by community attention rather than a product or cash flow.
This entry is shown in English.
How Memecoin works
Dogecoin, launched in 2013 as a joke about a Shiba Inu dog meme, is the original memecoin. Since then thousands have followed, especially on Solana, Ethereum and BNB Chain, where anyone can create a token in minutes through launch platforms.
Memecoins can rise many times over in days when social media attention spikes, and they can lose most of their value just as quickly. Many have huge supplies, little liquidity and concentrated holders. Early buyers or the creators often hold a large share and can sell into new demand.
If you trade memecoins, size positions so that losing the whole amount would not hurt you. Check whether liquidity is locked, how much supply the top wallets hold, whether the contract can mint more tokens, and whether the token is listed on established exchanges. A large exchange listing increases access, but it does not make the token less volatile.
Example
Suppose you put 100 USDT into a new memecoin at 0.0002 USDT per token, buying 500,000 tokens. Two days later it trades at 0.0006, and your holding is worth 300 USDT. A week after that, the creator wallet sells and the price drops to 0.00005. Your tokens are now worth 25 USDT, a 75 percent loss from your entry and over 90 percent from the peak.
Common mistakes
- Buying after a token has already risen several hundred percent because of FOMO.
- Ignoring holder concentration and liquidity, then being unable to sell without crashing the price.
- Confusing a copycat token with the real one because it uses the same name and ticker.
Learn and practise
Try it on an exchange
OKX offers this. Sign up through our link and the code below is applied.
nexu888Open OKXFAQ
What was the first memecoin?
Dogecoin (DOGE), created in 2013, is widely considered the first memecoin.
Are memecoins a scam?
Not all of them, but the category has many rug pulls and pump-and-dump schemes. Even legitimate memecoins are highly speculative because their value depends on attention.
Why do memecoins have such huge supplies?
A huge supply makes the price per token tiny, which feels cheap to buyers. What matters is market cap, not the unit price.