A new asset born from internet culture: An in-depth analysis of meme coins and how to create them

What Are Meme Coins? Understanding from the Basic Concept

Meme coins are cryptocurrencies inspired by internet memes and pop culture trends. While traditional cryptocurrencies like Bitcoin and Ethereum focus on solving technical challenges and value, meme coins derive their worth from community cohesion and speculative expectations.

The key features that characterize meme coins are as follows:

1. Cultural Foundation — Embodying the fun and lightheartedness of internet culture, bringing that vibe into the world of crypto assets.

2. Community-Driven — Formed around strong, often humorous communities that foster a sense of camaraderie.

3. Limited Utility — Most meme coins lack clear use cases beyond being tradable tokens.

4. Extreme Volatility — Prices can multiply dozens of times in a short period or drop over 90% within a day.

5. Social Media Dependency — Prices are highly susceptible to sudden surges or drops triggered by statements from celebrities or trends on platforms like X (formerly Twitter) and TikTok.

In the industry, meme coins are sometimes equated with “shitcoins.” However, supporters argue that “some meme coins have gained social value, reached massive market caps, and influenced the entire crypto market.”

Evolution of the Meme Coin Market: From 2013 to Present

Birth and Influence of Dogecoin (2013–2022)

The history of meme coins begins with the creation of Dogecoin in late 2013. Based on the popular “Doge” meme, Dogecoin(DOGE) was originally a joke coin, which later became a catalyst for many other meme coins.

Its market cap reached approximately $62 billion (around 9 trillion yen) in 2021, boosted by support from Elon Musk. Musk tweeted, “Dogecoin is people’s crypto,” and “There are no highs or lows, just Doge,” which increased overall interest in the meme coin market.

Meme Coin Boom During Trump Era (2024–2025)

Following Donald Trump’s victory in the 2024 US presidential election, the meme coin market experienced renewed enthusiasm. FartCoin temporarily reached a valuation of over $2 billion.

Trump himself announced a meme coin called “TRUMP” just three days before his second inauguration. The next day, its market cap hit $27 billion, and his company’s holdings rose to $20 billion. However, the $TRUMP coin, which surged to $70 in January 2025, fell back to around $8 by September.

Government Adoption of Meme Coins (2025)

What was once just a joke is now seeing government-level adoption.

In February 2025, the President of the Central African Republic, Faustin Archange Touadéra, announced the national meme coin “CAR” on his official X account. However, its value plummeted 95% just one day after trading started.

In the same month, Argentine President Javier Milei promoted “$LIBRA,” stating on Twitter that it aims to “encourage economic growth in Argentina and provide funding to small businesses.”

How to Create a Meme Coin: Basic Process

As the meme coin market expands, more people are interested in creating their own. The basic steps to create a meme coin are as follows:

Technical Implementation Process

Meme coins are built on blockchain technology, typically on existing platforms like Solana or Ethereum.

Steps to create:

1. Prepare a Wallet — Set up a digital wallet such as MetaMask.
2. Use Token Creation Tools — Utilize tools like ThirdWeb or OpenZeppelin.
3. Configure Parameters — Decide on project name, symbol, total supply, etc.
4. Deploy Smart Contract — Pay fees to register the token on the blockchain.
5. Start Marketing — Promote via social media, Discord, Telegram, etc.

In 2024, Solana and Base were the most popular blockchain platforms among meme coin creators, mainly due to low fees and high processing speeds.

Legal Risks in Meme Coin Creation

However, creating meme coins involves significant legal risks.

Cases of project abandonment, pump-and-dump schemes, or rug pulls are increasing. For example, a meme coin based on “Hawk Tuah” reached a maximum of $490 million but then sharply declined to $25 million. Creators were accused of promoting pump-and-dump schemes, rug pulls, and insider trading.

Careless meme coin creation can be extremely risky and may lead to legal liabilities.

Current Status of Popular Meme Coins by Market Cap

The meme coin market has seen phenomenal growth, with some tokens reaching substantial sizes.

Dogecoin(DOGE) — Market cap around $62 billion. Driven by a dedicated community and Elon Musk’s support. In September 2025, a Dogecoin-linked ETF was approved in the US, making it easier for institutional investors to access.

Shiba Inu(SHIB) — Following the “dog” theme of Dogecoin, it has built its own ecosystem. Maintains relatively stable trading volume.

PEPE(PEPE) — Based on the internet meme “Pepe the Frog,” it functions as a leading emerging meme coin.

TRUMP — A meme coin announced by Donald Trump himself. Political interest and speculative expectations support its value.

MELANIA — Meme coin related to Melania Trump. The political background as First Lady has helped form a community.

Bonk(BONK) — A relatively new meme coin launched in 2022. Gained attention in the Solana community, integrated into dApp systems, and linked with NFT platforms, gaining utility. Its market cap reached $3 billion.

ChillGuy(CHILLGUY) — Based on the meme “a chill guy,” gained popularity in early 2025. Its relaxed branding resonates with crypto enthusiasts seeking community-focused projects.

Risks and Returns of Meme Coin Investment

Benefits of Investing

1. High Returns Potential — Due to virality and strong community, prices can reach very high market caps within days.

2. Community Engagement — Joining like-minded enthusiast communities offers networking and learning opportunities.

3. Low Entry Barriers — Usually cheaper than mainstream cryptocurrencies, making it accessible for beginners with limited funds.

4. Learning Opportunities — Gain knowledge about blockchain technology and crypto markets in a relatively low-risk environment.

5. Trading Opportunities — Provides many chances for traders seeking profits from short-term price swings.

Drawbacks of Investing

1. Extreme Volatility — Unsuitable for stable long-term investments; drops of over 90% in a day are common.

2. Scam Risks — High risk of project abandonment, pump-and-dump schemes, and significant financial losses.

3. Lack of Utility — Most serve only as tradable tokens with limited long-term value propositions.

4. Liquidity Risks — Less popular meme coins may have low trading volume, making it difficult to exit positions.

5. Regulatory Uncertainty — As of February 2025, the SEC stated that typical meme coin trading does not constitute securities offerings, but regulatory stances may change.

Thailand’s SEC bans digital assets like meme coins that lack clear purpose or substance. The UK’s Advertising Standards Authority investigates meme coin promotions, considering them financial products subject to regulation.

Technical Foundations of Meme Coins

Meme coins are fundamentally built on blockchain technology, similar to other crypto assets. They operate in a decentralized manner without central authorities, ensuring transparency and tamper resistance.

Blockchain Platforms

Most meme coins are created on existing blockchains. Typically, individuals or groups conceive, create, and market tokens. In 2024, Solana and Base were the most popular platforms among meme coin creators, favored for low fees and high speed.

Token Trading and Market Size

Many meme coins are created without other use cases besides being tradable and exchangeable. Nonetheless, they are popular among crypto traders, with daily trading volumes exceeding $6 billion in early 2025.

Community-Driven Marketing

The uniqueness of meme coins lies in organizing fans around specific topics or fun content. This often leads to viral marketing campaigns, which are a key driver of popularity.

Future Scenarios for the Meme Coin Market

Expansion of Celebrity and Politician Tokens

Successes of meme coins related to Trump, Melania Trump, and internet celebrities like Hailey Welsch suggest that personality-dependent tokens will continue to emerge and attract attention.

Government Experiments

Creation of national meme coins like $CAR in the Central African Republic and promotion of $LIBRA by Argentina’s president indicate a potential trend of governments experimenting with meme coins for various purposes.

Institutionalization via Investment

In January 2025, several US asset management firms announced ETFs investing in meme coins linked to Trump and Musk. The Financial Times described this as “casino-like speculation,” indicating growing institutional interest despite skepticism.

Connection with ETFs and Traditional Finance

The approval of the DOGE ETF symbolizes meme coins moving beyond mere speculative casino assets and beginning to connect with traditional finance. Future developments may include integration with gaming and social media platforms for practical use.

Multi-Layered Regulatory Environment

Current US Stance

In February 2025, the SEC’s Division of Corporate Finance stated that typical meme coin transactions do not qualify as securities offerings under federal securities law. They note that meme coins are usually purchased for entertainment, social, or cultural purposes, with value driven by market demand and speculation.

Variations in Regulations by Country

Regulatory approaches vary significantly across countries. Thailand’s SEC bans digital assets like meme coins lacking clear purpose or substance. The UK’s ASA investigates meme coin promotions, considering them financial products subject to regulation.

Future Regulatory Frameworks

As the market matures, more detailed regulatory frameworks are expected to emerge, providing clear guidelines for creators and investors of meme coins.

Practical Guide to Meme Coin Investment

Importance of Rational Judgment

Investing in meme coins should be treated as high-risk assets, not just entertainment. Avoid being swayed by market hype; establish your own rules and risk management strategies. Engaging with small amounts initially is a realistic approach.

Principles of Fund Management

Invest only what you can afford to lose, and conduct thorough research before entering the market. Overall, meme coins can experience drops of over 90% in a single day.

Warning from Investor David Einhorn

Prominent US investor David Einhorn commented, “We have reached the ‘Fart Coin’ phase of the market cycle. Apart from trading and speculation, there is no clear purpose, and it does not fulfill unmet needs elsewhere.” He also pointed out the similarities with the speculative frenzy and collapse of the NFT market in 2022.

Frequently Asked Questions

What is a meme coin?

A cryptocurrency born from internet memes and pop culture. Unlike traditional cryptocurrencies that focus on technical purposes and utility, meme coins are supported by “community enthusiasm” and “speculative expectations.”

What are the basic steps to create a meme coin?

Prepare a wallet → Use token creation tools → Set parameters → Deploy smart contract → Promote via social media. However, this involves legal risks, so reckless operation is not recommended.

How do meme coins differ from regular cryptocurrencies?

Main differences are: purpose (entertainment/community vs. technical problem-solving), value sources (community/speculation/trending topics vs. technical value/practicality), and volatility (very high vs. relatively stable).

What is the safest way to store meme coins?

Options include exchange wallets (easy but hacking risk), software wallets (self-managed but risk of losing keys), and hardware wallets (most secure but costly). For long-term holding, self-management with a highly trusted wallet is recommended.

Conclusion: The Position of Meme Coins and the Reality of Creating Them

Meme coins represent a unique phenomenon where internet culture and crypto assets merge, bringing a new dimension to digital finance. Since the birth of Dogecoin in 2013, this field has experienced remarkable growth, reaching a total market cap of trillions of dollars.

Movements like Trump-related tokens, government-issued meme coins, and ETF approvals suggest that this market is evolving beyond a mere fad into a more established sector.

On the other hand, creating meme coins is technically easy but involves extremely high legal and scam risks. Creators and investors must conduct careful analysis and proper risk management to participate in this intriguing market segment.

Ultimately, whether meme coins remain just speculative assets or become a new form of digital value creation depends on future technological innovations and community maturity.