Meme coins have become a trending topic in the crypto world, capturing the interest of traders and investors even outside crypto with their quirky origins and potential for huge returns. But do they really make a good investment? Let's dive into what meme coins are, why they attract so much attention, and whether they have a place in your investment portfolio.
Meme coins are cryptocurrencies inspired by internet memes, jokes, or pop culture references. Unlike established tokens and coins like Bitcoin or Ethereum, which aim to solve specific problems, meme coins often lack practical utility and instead rely on community enthusiasm and viral marketing for their success.
Typically, meme coins are created on Solana, Ethereum, its L2s, or other networks, with Solana leading this industry. Creators don't need specific knowledge or a deep understanding of how smart contracts and related stack work. Actually, you can launch a meme coin in minutes with zero background thanks to platforms like Pump.fun that offer simple UI for token creators.
Read this article in the Qoda blog to learn more about what meme coins are.
Explore more meme coins filtered out by their market capitalization on Coinmarketcap.
As discussed in our previous blog post, opinions on meme coins are divided within the crypto community.
One part of users believe that meme coins are "the worst thing that has happened to the industry" and "the dumbest crypto use case." Meme coins are a disappointment in what Bitcoin, Ethereum, and decentralized finance were invented for. They have limited or no utilities and are highly volatile, which scares away newcomers, who are potentially attracted to crypto and often scam their users, leaving them with nothing.
The other part believes that crypto was created not only for the grand ideas of changing the financial world but is inextricably linked to the Internet culture as a whole, and therefore, meme coins are one of its organic use cases. The idea of meme coins is simple, making it easy for new people to onboard. Memes are primarily about community and communication; if someone wants to try trading, they know exactly what they are getting into.
Which camp do you belong to?
Investing in meme coins requires careful consideration and risk management:
Managing a meme coin portfolio requires more frequent attention than investing in more established currencies. At the same time, the volatility of newly created tokens can be so significant that you will need to automate trading and constantly monitor your positions.
Rebalancing applies the same principle as for crypto and other assets in general, taking into account the fact that the spread may not be 5-10% as for more mature assets but more, taking volatility into account.
Keep in mind risk management and diversification.
We already had one in January 2025, TRUMP. What will be the next one? While it's impossible to predict with certainty, meme coins with strong communities (like celebrities' fun tokens, AI memes, meme coins created by innovative AI Agents) and creative marketing strategies have the potential to surge in value. Stay informed and watch emerging projects closely.
Dogecoin remains a popular choice due to its established community and market presence. However, newer meme coins may also present promising opportunities.
Liquidity issues or lack of exchange listings can make cash out meme coins difficult. Always verify trading volumes and platform support before investing.
The future of meme coins depends on their ability to maintain community support and adapt to market trends. While some may fade away, others could evolve into more substantial projects.
The primary risks include price volatility, lack of utility, scams, and challenges cashing out investments.
Investors are drawn to meme coins for their high return potential, community-driven nature, and the excitement of speculative trading.
Holding periods depend on individual goals. Some traders opt for quick profits, while others hold longer if they believe in the coin's growth potential.
Meme coins are a high-risk, high-reward investment option that can offer excitement and potential profits. However, they require careful research and disciplined risk management. By staying informed and cautiously approaching meme coins, you can decide if they align with your investment strategy.