A cryptocurrency that is often inspired by internet memes or trends (or certain humorous characteristics), and is sometimes identified with animated characters or animal meme images. Hence, memecoins are typically characterized by their volatile nature and lack of intrinsic value. Memecoins represent no utility, and provide no roadmap and no promises. Even there is no expectation of financial return. These digital coins are typically supported by enthusiastic online communities and are generally intended as humorous and light-hearted interests.

Such coins are very much popular amongst internet communities on platforms like Telegram and Discord, often capturing fleeting moments like the right-wing mascot Peanut the Squirrel. Historically, in many instances, buyers used to flock into the coins (memecoins) driven by price spikes until holders rush again to sell before the value sustains substantial drops.

As a genre of cryptocurrency, memecoins are driven by an exuberant online community supporting their growth and established price levels. As with other cryptocurrencies, memecoins rely on blockchain technology, a type of distributed database designed to track virtual assets. Given their nature, most memecoins represent purely trading instruments, unlike Ethereum and other utility currencies that are tied to specific blockchain features. These coins are established and trade in a corner of the industry dominated by so-called “degens”— abbreviation for degenerates, or persons who delight in memes, trolling, and get-rich-quick schemes.

Memecoins are considered risky and volatile trading assets since their value proposition is based on no intrinsic value. Issued for fun or as a joke, nevertheless, these coins somehow gain followers and individuals who show certain interest in holding them.

Examples of memecoins include Dogecoin, Floki, Pepe, Shiba Inu, and others that are often associated with entertainment rather than usability.

Memecoins are also known as meme coins or simply as memes.