What is a Meme Coin?
Definition
- Meme coins (also written “memecoins”) are cryptocurrencies emerging from internet memes or trends.
- Meme coins play a memorable role in digital culture due to their possibility of high return, overarching volatility and community nature.
- They are typically volatile in nature.
What is a Meme Coin?
Meme coins are a type of cryptocurrency that emerge from popular internet memes, characters, people, or trends. They use blockchain technology similar to more "serious" cryptocurrencies, but the primary appeal lies in the community and cultural significance rather than technological innovation.
They also usually have an online community that supports their growth.
Unlike more traditional cryptocurrencies that might be developed with specific technological or economic goals in mind, meme coins often start as jokes or as part of social media trends but can grow to have significant market value.
Popular Meme Coins
While there are thousands of different meme coins, a few have risen to top. As of June 2024 the top 6 meme coins according to CoinMarketCap are DOGE, SHIB, PEPE, WIF, BONK, and FLOKI.
These meme coins vary significantly in purpose and implementation, reflecting the diverse approaches within the meme coin segment of the cryptocurrency market.
Dogecoin (DOGE)
Created in 2013 by Billy Markus and Jackson Palmer, Dogecoin began as a playful project based on a Shiba Inu meme. It's a Litecoin fork utilizing a Proof of Work mechanism and does not have a capped supply.
Shiba Inu (SHIB)
Often dubbed the "Dogecoin killer," Shiba Inu was launched in August 2020 by an anonymous individual known as Ryoshi. It features a capped supply of one quadrillion tokens, half of which were initially burnt or donated to charity. SHIB's ecosystem includes a decentralized exchange, NFTs, and a related game, marking it distinct from DOGE.
Pepe (PEPE)
Inspired by the internet meme Pepe the Frog, Pepe coin was introduced in April 2023. It quickly caught the attention of meme enthusiasts and holds a circulating supply of 420 trillion tokens.
Dogwifhat (WIF)
Emerging in late 2023, Dogwifhat has remained focused purely on its meme appeal, distinguishing itself from other meme coins that often branch into additional utilities. In 2025 the wif community raised 690,000 USDC to project the meme coin’s image onto the Las Vegas Sphere.
FLOKI (FLOKI)
Named after Elon Musk’s Shiba Inu, FLOKI started as a meme coin but has expanded to include NFT marketplaces and staking platforms, aiming to blend meme culture with practical applications.
Bonk (BONK)
A dog-themed meme coin on the Solana blockchain, Bonk became well-known after distributing 50% of its total supply to the Solana community through an airdrop in 2022.
Milady Meme Coin (LADYS)
Launched in May 2023 and inspired by the Milady NFT collection, LADYS aims to merge meme coin charm with NFTs. It has a total supply of 888 trillion tokens.
Risks and Volatility
These digital currencies are known for their volatile nature and can experience rapid fluctuations in price. This volatility can be driven by a variety of forces, including social sentiment and celebrity endorsements rather than underlying economic fundamentals. Prices can skyrocket and plummet within short periods, often based on trends or tweets rather than substantial changes in the market.
Despite this, meme coins have carved out a niche in the crypto market, attracting a large following among traders and speculators drawn by the potential for high returns. The humorous origin of many meme coins does not always mean they are safe from the realities of the crypto market dynamics, and as with any investment, due diligence is crucial.
How to Buy Meme Coins
You can buy more popular meme coins, such as DOGE, SHIB, PEPE, and WIF, on cryptocurrency exchanges like Backpack. For less prominent meme coins, you can go to decentralized exchanges.
Let’s take WIF as an example.
1. Log in to your Backpack account. Then, head to [Trade] at the top navigation bar.
2. Type “WIF” on the search bar to see a list of the available trading pairs. We will use WIF/USDC as an example. Click to open its trading page.
3. Enter the amount of WIF you want to buy and click ‘Buy’ to confirm the order.
Popularity of Meme Coins
The popularity of meme coins has surged, particularly during strong bull markets in the crypto space, where they receive a lot of media attention and social media hype. Figures like Elon Musk have famously influenced the price of Dogecoin through various tweets and comments, highlighting how celebrity social factors can affect these assets. This popularity underscores a cultural shift in investing where humor and community can sometimes outweigh traditional financial analysis.
Regulation of Meme Coins
The regulatory environment for meme coins is still developing. Some jurisdictions have started to look more closely at how these assets are created, traded, and marketed, given their ability to garner significant public attention and the potential risks to investors. Regulation can vary widely by country, and understanding these legal frameworks in your country is important before beginning to trade.
Conclusion
Meme coins represent a fascinating intersection of internet culture and financial technology, embodying how modern tech can create value from viral trends. However, the whimsical nature of these coins does not exempt them from the realities of the market—significant risks accompany the potential rewards. If you’re interested in the meme coin space make sure to DYOR have an understanding of the market dynamics at play.
Learn more about Backpack
Exchange | Wallet | Twitter | Discord
Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Backpack. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Backpack is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice.
