The crypto universe brings to reality the broadest possibilities as much as possible. Beyond payment methods, optimization of processes, and reliable verification of records, there are also projects originated from... Memes.
That's right, you read it correctly, they are meme coins.
Some meme coins, such as Dogecoin (DOGE), Bonk (BONK), and Trump Coin (TRUMP), have gained prominence in the cryptocurrency market, driven by memes, social media, and celebrities. Despite their fun appeal, these coins pose significant risks to unsuspecting investors.
It is precisely about this part of the crypto universe, its risks, opportunities, and precautions that you need to take that we will discuss in this article.
What are meme coins?
Meme coins are cryptocurrencies inspired by internet memes, jokes, or popular figures. Unlike cryptocurrencies like Bitcoin or Ethereum, which have clear technical foundations and utilities, meme coins generally lack a defined functional purpose.
The value of these cryptos is strongly influenced by community enthusiasm and viral trends on social media, making them highly volatile.
Another factor worth mentioning when we talk about meme coins is the power of community: on one hand, there are no solid fundamentals or specific mission, but on the other hand, there is usually an engaged group of people interested in that project, and ultimately, it is these people who end up representing the liquidity of this part of the market.
The rise on social media
The popularity of meme coins is closely tied to social media. Platforms like X (formerly Twitter) and Reddit play a crucial role in disseminating information and increasing interest in these coins.
For example, Dogecoin gained notoriety after being promoted by Elon Musk on his social media, resulting in a significant appreciation. Moreover, despite not mentioning the project directly for some time, we cannot forget that he directs a part of the American government whose acronym is, precisely... DOGE.
Another point that draws attention in this part of the crypto universe is the ease of creating meme coins, which contributes to their proliferation. Tools like the Pump.fun protocol, launched on the Solana network, allow anyone to create a meme coin in just a few minutes, even without technical knowledge. Since its launch, over 5 million tokens have been created through this platform.
Recent examples of gains and losses show that caution is necessary
The meme coin TRUMP, launched by Donald Trump in January 2025 (shortly before his second presidential term begins), exemplifies the volatility of this market. Initially valued at around $6.50, it reached a peak of $75.35 just days after its launch.
However, after the launch of a competing meme coin by Melania Trump and concerns about token concentration, the value of TRUMP dropped drastically, accumulating a decrease of 85.58% since its all-time high.
Another example that shows the extent of this volatility is BONK, the first major meme coin to gain traction on the Solana network. Launched at the end of 2022, it quickly garnered a large following, becoming a symbol of Solana's meme coin culture.
There is still a case of very, very significant appreciation. The token SPX6900 had an annual increase of 44,475,000%, although it is 25.4% below its all-time high. However, these gains are often followed by abrupt declines, highlighting the speculative nature of these coins.
What are the risks for those investing in meme coins?
Investing in meme coins involves significant risks:
Extreme volatility: Prices can rise rapidly due to hype, but they can also plummet just as quickly, resulting in substantial losses;
Market manipulation: The lack of solid fundamentals makes meme coins susceptible to "pump and dump" schemes, where the value is artificially inflated to attract investors, followed by a massive sell-off that crashes the price;
Lack of regulation: The creation and promotion of meme coins often occurs in environments with little or no regulatory oversight, increasing the risk of fraud and scams;
Celebrity influence: The endorsement of public figures can temporarily boost the value of a meme coin, but it can also lead to abrupt declines when interest wanes or controversies arise.
Is it possible to separate a bubble from a real opportunity?
Most meme coins lack practical utility or solid economic fundamentals. Their value is primarily driven by community enthusiasm and viral trends on social media. While some have achieved significant market capitalizations, like Dogecoin, many others disappear as quickly as they appear.
Experts warn that while it is possible to make profits with meme coins, it is essential to understand the risks involved and avoid investing more than one can afford to lose. The speculative and volatile nature of these coins makes them unsuitable for long-term investments or for risk-averse investors.
In practical terms, you are much more likely to find trading opportunities than necessarily tokens that you will end up holding or something more long-term.
Meme coins: is it worth getting into this?
Meme coins represent an intriguing and risky facet of the crypto universe. While they may offer opportunities for quick gains, they also carry a high potential for losses. Investors interested in this segment should proceed with caution, conduct thorough research, and consider the risks before allocating resources to meme coins.
In a market where hype can be as fleeting as a viral meme, prudence is the best strategy. Understanding this part of the crypto universe as a portion of short-term opportunities - or at least the chance to delve deeper into some community rather than necessarily making money from it - is usually the best approach.
And you, do you have meme coins in your wallet?
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