Meme coins are cryptocurrencies born out of internet memes, jokes, or viral culture. In recent years, their extreme volatility and viral appeal have made them increasingly popular as speculative investment targets.
This article introduces the key characteristics of meme coins, highlights some of the most well-known tokens, and walks you through how to buy them and what to watch out for when trading.
Key takeaways
- Meme coins are cryptocurrencies built around internet memes and viral culture, valued on popularity and community rather than technical utility.
- DOGE, SHIB, and PEPE are the best-known examples, and all three have seen dramatic rallies driven by social media attention.
- Many meme coins have enormous circulating supplies, in the hundreds of trillions, which keeps the price per token extremely low.
- Well-known meme coins can be bought on centralized exchanges after KYC verification, while newer tokens often require a DEX such as Uniswap together with a wallet like MetaMask.
- When buying on a DEX, always verify the token contract address against a source like CoinMarketCap to avoid scam copies.
- Key risks include extreme volatility, pump-and-dump schemes, thin liquidity on newly launched tokens, and rug pulls where developers abandon the project.
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What Are Meme Coins?
Meme coins are a category of cryptocurrency developed around internet memes, jokes, or viral cultural phenomena.
The term "meme" refers to the way funny images, videos, and ideas spread rapidly across the internet and social media. Meme coins sit at the intersection of this viral culture and blockchain technology.
While most cryptocurrency projects are built around technical innovation or practical utility, meme coins are designed primarily to attract attention through their unique themes and passionate communities.
Because their value is heavily influenced by popularity and hype, meme coins are generally considered high-risk, high-reward investments.
Popular Meme Coins
Because launching a meme coin does not require groundbreaking technology and the barrier to entry is low, new meme coins appear every day.
Major cryptocurrency tracking sites like CoinMarketCap and CoinCodex maintain dedicated meme coin pages where you can stay up to date with the latest tokens.
DEX (decentralized exchange) tracking tools like DEXTools can also help you discover newly launched meme coins before they appear on larger platforms.
Here are four of the most globally recognized meme coins.
DOGE (Dogecoin)
Dogecoin was created in 2013, making it one of the oldest meme coins in existence.
It started as a joke coin featuring the face of a viral Shiba Inu dog meme as its logo. Despite its humorous origins, Dogecoin built a loyal community over the years.
In 2021, Elon Musk repeatedly mentioned Dogecoin on social media, catapulting it into mainstream awareness. The price surged from fractions of a cent to an all-time high near $0.74.
Dogecoin currently has over 140 billion tokens in circulation with no maximum supply cap, meaning the circulating supply will continue to grow over time, which could dilute the value per token.
SHIB (Shiba Inu Token)
Shiba Inu Token launched in 2020 as a direct rival to Dogecoin, sharing the same Shiba Inu dog theme.
Often described as a "joke coin of a joke coin," SHIB initially attracted little attention. That changed in 2021 when Elon Musk mentioned it alongside Dogecoin, igniting a massive price rally.
From a price near $0.000000001 at the end of 2020, SHIB reached a peak of approximately $0.00008 in October 2021, an astronomical percentage gain.
The total supply of SHIB was fixed at issuance (1 quadrillion tokens), with roughly 590 trillion currently in circulation, making it an extremely low-priced token per unit.
PEPE (Pepe Coin)
Pepe Coin is based on the iconic internet character "Pepe the Frog."
Launched in April 2023, it quickly gained attention after Binance, one of the world's largest cryptocurrency exchanges, listed it in May 2023.
PEPE saw a particularly dramatic price surge from late February to mid-March 2024, with some analysts attributing the rally to whale (large investor) activity. This highlighted the extreme volatility that meme coins are known for.
With over 420 trillion tokens in circulation and no future issuance planned, PEPE, like SHIB, trades at an extremely low unit price.
Other Notable Meme Coins
The meme coin landscape is constantly evolving. Tokens like BONK, WIF (dogwifhat), and FLOKI have all attracted significant attention at various points. Keeping an eye on tracking sites and social media is the best way to stay informed about emerging meme coins.
How to Buy Meme Coins
Meme coins can be purchased on centralized exchanges (CEXs) or decentralized exchanges (DEXs). Here are the general approaches.
Buying on a Centralized Exchange
The simplest way to buy popular meme coins like DOGE and SHIB is through a centralized cryptocurrency exchange.
Major global exchanges such as Binance, Coinbase, Kraken, and OKX list several well-known meme coins. The general process is:
Step 1: Create an account on the exchange. You will need to provide identification documents for KYC (Know Your Customer) verification. Follow the exchange's registration flow, complete identity verification, and set up security features like two-factor authentication.
Step 2: Deposit funds. Transfer fiat currency (USD, EUR, etc.) or cryptocurrency to your exchange account. Most exchanges support bank transfers, credit/debit cards, or crypto deposits.
Step 3: Buy the meme coin. Once your account is funded, search for the meme coin you want (e.g., DOGE/USDT or SHIB/USD) and place a market or limit order.
Buying on a DEX (Decentralized Exchange)
Some meme coins, especially newer or more niche tokens like PEPE, may not be available on centralized exchanges. In these cases, you can use a DEX such as Uniswap, Raydium, or PancakeSwap.
Here is an example using Uniswap and the MetaMask wallet to buy PEPE:
Step 1: Fund your MetaMask wallet with ETH. Purchase ETH on a centralized exchange, then send it to your MetaMask wallet address. ETH is needed both for the swap and for paying gas fees on the Ethereum network.
Step 2: Connect MetaMask to Uniswap. Visit Uniswap and click "Connect Wallet." Select MetaMask from the list and approve the connection in the MetaMask popup.
Step 3: Swap ETH for PEPE. On the swap interface, select ETH as the input token and PEPE as the output token. Enter the amount you want to trade, review the quoted exchange rate and fees, and click "Swap." Confirm the transaction in MetaMask to complete the trade.
When using DEXs, always double-check the token contract address (available on CoinMarketCap or CoinGecko) to ensure you are buying the correct token and not a scam copy.
Key Risks When Trading Meme Coins
Before trading meme coins, it is essential to understand the risks that come with their unique characteristics.
Unlike most cryptocurrency projects, meme coins prioritize humor, virality, and community engagement over technical utility. This means their prices are largely driven by hype and sentiment rather than fundamentals.
Key risks include:
- Extreme volatility. Influencer endorsements, social media trends, and whale activity can cause dramatic price swings in very short periods.
- Pump-and-dump schemes. Some meme coins are created specifically to attract buyers before the creators sell off their holdings, crashing the price.
- Low liquidity on newer tokens. Freshly launched meme coins may have very thin order books, making it difficult to sell without significant slippage.
- Rug pulls. In the worst cases, meme coin developers may abandon the project entirely after collecting investor funds, especially on unaudited DEX tokens.
- Massive token supplies. Many meme coins have extremely large circulating supplies (in the trillions), resulting in very low per-unit prices that can amplify perceived volatility.
Always invest only what you can afford to lose, and approach meme coin trading with caution.
Keeping Track of Your Meme Coin Trades
If you buy and sell meme coins, you may need to report gains for tax purposes. Calculating your profit and loss across multiple trades, exchanges, and DEX swaps can be challenging, especially when conversions between different cryptocurrencies are involved.
cryptact can help simplify this process by automatically calculating your gains and losses from your transaction history.
Conclusion
Meme coins occupy a unique corner of the cryptocurrency world, blending internet culture, community spirit, and financial speculation. While their humor and low entry prices make them approachable, their extreme volatility and susceptibility to hype-driven manipulation mean they carry significant risk.
Whether you are drawn to the cultural phenomenon or the potential for outsized returns, a solid understanding of how meme coins work, where to buy them, and what risks to watch for is essential before diving in.
