What is a meme coin?

A meme coin is a cryptocurrency themed on a joke, an internet image, a celebrity or a passing trend. It usually has no product, service or income behind it. Its price depends almost entirely on how many people are paying attention and whether they keep buying.

Where did meme coins come from?

The first was Dogecoin, launched in December 2013 as a parody of the rush of new cryptocurrencies. It took its name and mascot from a popular picture of a Shiba Inu dog. Shiba Inu, a token on Ethereum, followed in 2020.

Thousands more have appeared since, some promoted by celebrities.

How is a meme coin launched?

Almost all newer meme coins are tokens, not coins with their own blockchain. Anyone can create one in minutes on a network such as Ethereum or Solana.

The creator then pairs the token with an established cryptocurrency in a liquidity pool, a pot of two assets that lets people swap one for the other on a decentralized exchange. Promotion then moves to social media and chat groups.

Why do the prices swing so much?

There is nothing to anchor the price. A company's shares can be measured against its profits. A meme coin has only supply, demand and mood.

The markets are also small. When a pool holds little money, even modest buying pushes the price up steeply, and selling pushes it down just as fast. Early buyers and automated trading programs often acquire large amounts in the first seconds, then sell to later arrivals. A post from a well-known account can move a price within minutes.

What are the risks?

• Concentrated ownership. Creators and insiders often hold a large share of the supply and can sell it at any time.
• Rug pulls. The creator can remove the money from the liquidity pool or dump their tokens, leaving other holders with something they cannot sell. See what a rug pull is.
• Pump and dump. Groups coordinate to hype a token, then sell into the buying they have stirred up. See pump-and-dump schemes.
• Malicious code. Some token contracts are written so that buyers cannot sell at all.
• Fading interest. Many meme coins lose nearly all their trading activity once attention moves on.

There is also little legal protection. In February 2025, SEC staff said typical meme coins are not securities, and a joint SEC and CFTC interpretation in March 2026 classed them with digital collectibles. Buyers therefore do not get the disclosures and safeguards that come with shares. Fraud involving a meme coin can still be pursued by other federal and state authorities.

Supporters describe meme coins as entertainment and a form of online community, and note that a few, including Dogecoin, have lasted for years. Critics call them a zero-sum game in which early holders profit at the expense of latecomers.