Meme Coins: The Modern-Day Dutch Tulips

Investopedia defines meme coins as “cryptocurrency named after characters, individuals, artwork, or others, in an attempt to be humorous, light-hearted, and attract a user base by promising a fun community.”

Meme coins are a type of cryptocurrency that is named after a character, individual, artwork, or other entity in an attempt to be humorous, lighthearted, and attract a user base by promising a fun community. The oldest and most popular meme coin is Dogecoin, which was created in 2013 and is named after the popular Japanese Shiba Inu dog Kabosu. Other meme coins include Shiba Inu, Pepe, Bonk, and Dogwifhat.

Meme coins are a type of cryptocurrency that is named after a character, individual, artwork, or other entity in an attempt to be humorous, lighthearted, and attract a user base by promising a fun community. The oldest and most popular meme coin is Dogecoin, which was created in 2013 and is named after the popular Japanese Shiba Inu dog Kabosu. Other meme coins include Shiba Inu, Pepe, Bonk, and Dogwifhat.

Coinmarketcap, a leading crypto market tracker, shows the market capitalization and volume (in USD) of meme coins being traded daily. As of late October 2024, Dogecoin is still the top meme coin and is in the Top Ten of all cryptocurrencies, but others are on its (doggie) tail.

Coinmarketcap, a leading crypto market tracker, shows the market capitalization and volume (in USD) of meme coins being traded daily. As of late October 2024, Dogecoin is still the top meme coin and is in the Top Ten of all cryptocurrencies, but others are on its (doggie) tail.

Most of the top ten memes are dogs, but number three is a green frog (Pepe). Cats only show up later in the top ten, although the list changes every minute, of course. Then there are of course the political memes named after variations of presidential candidates and their parties, but most people seem to prefer dogs and cats, and the occasional green frog they secretly want to kiss.

Most of the top ten memes are dogs, but number three is a green frog (Pepe). Cats only show up later in the top ten, although the list changes every minute, of course. Then there are of course the political memes named after variations of presidential candidates and their parties, but most people seem to prefer dogs and cats, and the occasional green frog they secretly want to kiss.

I do not personally invest in meme coins because they are literally the modern-day Dutch tulips, the bubbles that can go from hero to zero in a short time (even in less than a day). There is no cash flow associated with these tokens because they are simply trading and priced on community sentiment, which can be finicky and emotion-driven.

I do not personally invest in meme coins because they are literally the modern-day Dutch tulips, the bubbles that can go from hero to zero in a short time (even in less than a day). There is no cash flow associated with these tokens because they are simply trading and priced on community sentiment, which can be finicky and emotion-driven.

Every few seconds, a new meme coin is being created by sites like Pump.fun which allows anyone with a funny jpeg or png photo and a cute name to launch a meme coin. As you read this article, tons of meme coins have probably been launched. Most of these will not sell because they have no communities behind them.

Every few seconds, a new meme coin is being created by sites like Pump.fun which allows anyone with a funny jpeg or png photo and a cute name to launch a meme coin. As you read this article, tons of meme coins have probably been launched. Most of these will not sell because they have no communities behind them.

The more successful meme coins are, however, cult communities. These memes can skyrocket hundreds to thousands of percent growth in a short time. Most likely, in my opinion, there is some manipulation involved by whales, but the success of a meme coin is often determined by how fanatic that cult community is in not selling or dumping their tokens to tank the price. This is not to say, of course, that there are groups out there who are syndicates. In fact, the majority of these memes will at some point (some in a day, some in a year, etc.) fall back to zero or almost zero value. “Some point” could mean a few minutes after launch, or less, if you click on many of the newly launched tokens on Pump.fun.

The more successful meme coins are, however, cult communities. These memes can skyrocket hundreds to thousands of percent growth in a short time. Most likely, in my opinion, there is some manipulation involved by whales, but the success of a meme coin is often determined by how fanatic that cult community is in not selling or dumping their tokens to tank the price. This is not to say, of course, that there are groups out there who are syndicates. In fact, the majority of these memes will at some point (some in a day, some in a year, etc.) fall back to zero or almost zero value. “Some point” could mean a few minutes after launch, or less, if you click on many of the newly launched tokens on Pump.fun.

So why do people even “waste” their time on these memes? Memecoin Key Opinion Leaders (KOL) or influencers in the meme space like Murad Mahmudov speculate that because many people are down financially, want to get rich quickly, and do not really understand blockchain concepts like staking, blockchains, and other technical concepts, they seek solace and “digital community” in digital dogs, cats, frogs, and other things that they easily grasp and give them amusement. If there are enough people globally who want to do this to get rich quickly, and their personal motivations are not really synchronized (e.g., they do not all want to sell at the same time), then that could be the seed for a long-lasting meme.

So why do people even “waste” their time on these memes? Memecoin Key Opinion Leaders (KOL) or influencers in the meme space like Murad Mahmudov speculate that because many people are down financially, want to get rich quickly, and do not really understand blockchain concepts like staking, blockchains, and other technical concepts, they seek solace and “digital community” in digital dogs, cats, frogs, and other things that they easily grasp and give them amusement. If there are enough people globally who want to do this to get rich quickly, and their personal motivations are not really synchronized (e.g., they do not all want to sell at the same time), then that could be the seed for a long-lasting meme.

Plus, word of mouth is powerful. Johnny hears that cousin Luke made a few thousand dollars from a few dollars invested in a meme, and wants to follow and tells others. This can quickly spread, especially with social media networks. Unfortunately, when a community decides to sell and dump these memes, that can also happen with lightning speed.

Plus, word of mouth is powerful. Johnny hears that cousin Luke made a few thousand dollars from a few dollars invested in a meme, and wants to follow and tells others. This can quickly spread, especially with social media networks. Unfortunately, when a community decides to sell and dump these memes, that can also happen with lightning speed.

However, at some point when a meme has reached a $20 billion market cap like Doge, it begins to have a fanatic cult community who will not sell. That is why it has been around since 2013.

However, at some point when a meme has reached a $20 billion market cap like Doge, it begins to have a fanatic cult community who will not sell. That is why it has been around since 2013.

As social consensus is the main glue that these meme tokens have, these are literally for gambling with your money. Most have no discounted cash flow prospects and are really mass speculation and bubbles. For those who just want to have fun and speculate in this global casino of digital dogs, cats, frogs, and other symbols, there will always be a market for them.

As social consensus is the main glue that these meme tokens have, these are literally for gambling with your money. Most have no discounted cash flow prospects and are really mass speculation and bubbles. For those who just want to have fun and speculate in this global casino of digital dogs, cats, frogs, and other symbols, there will always be a market for them.