TRUMP coin, MELANIA coin, Dogecoin and Pepe coin are a particular kind of crypto: they’re memecoins.
Let me explain where they come from and what makes them so unusual, or sometimes absurd.
Memes
If, like me, you grew up with the internet, you’ve probably watched memes explode.
The idea behind a meme is simple: convey a message or idea through an image, text or video.
No long speeches needed. A sentence or image is enough for everyone to get it and share it.
Memes spread quickly because they’re easy to understand and pass on.
They grab someone’s attention instantly, that person likes it and shares it, and on it goes.
That ability to go viral is their real strength.
But memes aren’t just jokes. They also reflect cultures and subcultures.
They capture references or moments that resonate with a particular community.
Some become more popular than others when they break out of that original circle.
Take President Emmanuel Macron’s line: "I can cross the street and find you a job."
Originally, it was just a reply to a young jobseeker. The internet turned it into a meme.
It’s now often used to mock simplistic answers to complex problems.
What is a memecoin?
It started when an engineer wanted to make a joke by turning a viral dog image, Doge, into a cryptocurrency called Dogecoin.
But the joke grew far beyond what anyone expected.
Dogecoin didn’t just become a worldwide phenomenon. It started an entire movement: memecoins.
Memecoins are cryptocurrencies associated with a meme.
Their value depends entirely on how viral they become, rather than utility or technology.
When you invest in a memecoin, you aren’t backing a project or a revolutionary idea.
You’re betting on its ability to go viral.
That’s exactly how we went from NFTs, which are ultimately another form of meme, to memecoins.
Why does it work?
Mix memes with the crypto ecosystem, dominated by greed, FOMO and betting, and you have the perfect recipe for a mass phenomenon.
Add influencers or public figures such as Donald Trump or Elon Musk amplifying the buzz, and you have every ingredient for it to spread widely.
Should you be wary of memecoins?
Balaji Srinivasan, Coinbase’s former CTO and a respected figure in crypto, has a strong view:
That said, his position deserves some nuance.
Memecoin traders aren’t looking for intrinsic value.
They’re betting purely on the meme’s popularity and the excitement around it.
In other words, the goal is to buy before everyone piles in, and above all to sell before the buzz fades.
You could almost say it’s like a Ponzi scheme, except here everyone knows they’re playing with hype. At least, I hope they do.