Crypto Craze Gone Too Far? The Memecoin Boom

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January 27, 2025

Published by Shwetha Sivaraman at January 27, 2025

Article by Eleni Stratakou

Cryptocurrencies have always captured the world’s imagination, with Bitcoin leading the charge as a digital asset famously described as “a line of code created by computers firing sums at each other.” Despite limited everyday use, Bitcoin’s value has more than doubled in 2024. Yet, it appears to be losing its crown to a new competitor: memecoins.

What Are Memecoins?

Memecoins are tokens inspired by viral internet trends. Unlike Bitcoin, which is considered a “serious” digital currency, memecoins thrive on their community’s ability to turn “absurd and silly” ideas into massive profits. Backed by cultural moments, their value can surge from fractions of a penny to billions of dollars almost overnight.

The most famous memecoin is Dogecoin, a cryptocurrency initially created as a joke and based on an internet-famous Shiba Inu dog. Thanks to Elon Musk’s tweets, Dogecoin gained legitimacy as a fan favourite. Other bizarre contenders include Moo Deng, inspired by a playful Thai pygmy hippo, and PNUT, a token honouring a euthanised squirrel whose story went viral on TikTok and sparked outrage from none other than Donald Trump.

Today, there are more than 340 memecoins in circulation, with new ones entering the market daily.

Are Memecoins a Good Investment?

Critics are quick to highlight memecoins’ vulnerabilities. Often created using online generators, they lack a business model, cash flow, or intrinsic value. Unlike traditional investments, they don’t provide ownership of tangible assets. Their worth depends almost entirely on the meme’s popularity, making them highly volatile.

For most investors, memecoins are not a wise choice unless you’re deeply invested in internet culture or enjoy the sense of community that accompanies these tokens. Their speculative nature means early adopters can reap huge rewards, but those who buy in late often find themselves holding worthless assets.

How the U.S. Election Influenced Memecoins

Despite the risks, memecoin enthusiasts are buzzing over recent political developments. The 2024 U.S. election brought Donald Trump back into the spotlight, while Elon Musk secured a prominent position in the administration. Both figures are known for their meme-friendly personas and have inadvertently fuelled the memecoin market.

Since the election, Dogecoin’s market value has skyrocketed to $61 billion. However, it’s important to note that 89% of memecoins still have a market value of under $1,000, underscoring the disparity between top-tier tokens and lesser-known projects.

The Risks and Rewards of Memecoins

The key to profiting from memecoins lies in timing. Investors who enter early and accurately predict a meme’s rise can make significant gains — as long as they exit before the bubble bursts. Conversely, latecomers often end up with worthless assets.

2025 Predictions

The memecoin phenomenon shows no signs of slowing down. Analysts predict continued growth in the sector, with a handful of tokens standing out as frontrunners.

One such contender is BTFD Coin, dubbed “the new pioneer” of memecoins. Launched in November 2024, BTFD has already raised over $1 million in its first 10 days of presale, generating $600,000 in its first week alone. To date, over 16 billion BTFD tokens have been sold, making it a must-watch for enthusiasts and investors alike.

The Bottom Line

Memecoins reflect the internet’s ability to transform fleeting moments into lucrative opportunities. While the hype train continues to gain momentum, potential investors should approach with caution. Memecoins can offer astronomical returns, but they remain a gamble — one that heavily depends on timing, cultural relevance, and community buzz. Invest wisely, or risk being left with nothing more than a digital token of a once-viral moment.