Digital Distractions: Meme Coins as the Newest Form of Cryptocurrency

Written By Kathleen Xie

By Zack Skoutas

Imagine that you could go online, spend a half hour designing a digital coin, and have that cryptocurrency return a profit in a matter of minutes. Meme coins, the latest fad in the digital economy, have provided an avenue to do just that, although they tend to be incredibly volatile. A form of online currency similar to Bitcoin, meme coins gained popularity for their often humorous, light-hearted nature. In fact, most meme coins, as the name implies, tend to be based off of viral Internet memes or other social media trends.

It all started with Dogecoin, a digital coin inspired by a Shiba Inu that stands as the sixth most valuable cryptocurrency today. One of the notable features of Dogecoin, and meme coins in general, are the vibrant online communities that develop around them. In Dogecoin’s case, the crypto’s extensive fan base raised thousands of dollars for various charities, including $30,000 to fund clean water initiatives in Kenya and a whopping $50,000 to send the Jamaican bobsled team to the 2014 Winter Olympics (“DogeCoin”). Dogecoin revolutionized the concept of the meme coin, establishing a web-based community that cared about entertainment above all else. 

Yet, despite the fact that the value of a meme coin can plummet within minutes, some coin creators have managed to turn their designs into a considerable profit. Today, the meme coin market is valued at $100 billion, and over $100 million in meme coins are traded each day (Bambysheva). Because meme coins are so accessible – and people believe that anyone can turn a quick profit via the technology – nearly 50,000 new coins are created on a daily basis. It costs only $2 to create a coin, but the average meme coin disappears into the abyss of the online marketplace and becomes worthless after only 78 minutes (Bambysheva). Thus, an average person with a sense of humor who is willing to try their hand in cryptocurrency can create the newest viral meme coin. 

Further fueling the meme coin craze are celebrities like Elon Musk and Iggy Azalea. Musk was one of the first to publicly praise Dogecoin when it first came out in 2013, and the meme coin continues to sit at the top of the charts over a decade later, thanks to Musk’s regular displays of support for the coin on X (Toppa). Musk is such a key player in the meme coin industry that creators have designed several other coins on the basis of Musk’s interests and life, such as FLOKI, another highly valued coin inspired by Musk’s dog, and Dogelon Mars (ELON). But other celebrities are also taking part in the meme coin frenzy, with Iggy Azalea, for instance, launching $MOTHER, which is now valued at over $200 million (Carter). 

Despite all the hype, it’s important to view meme coins and the communities surrounding them with a bit of caution. These digital currencies have no inherent value, and while some of them have yielded quick profits, most of them have generated no financial gain. Although they may look colorful and make you laugh, meme coins are, at the end of the day, online jokes that come with a price.


References:

Kathleen Xie
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