From Jokes to Fortunes: Why Memecoins Are Ruling Crypto

Few assets have captivated the public’s imagination quite like memecoins. These playful, internet-inspired tokens have defied expectations, skyrocketing from humble beginnings to multi-billion-dollar market capitalizations.

What started as jokes quickly transformed into serious contenders in the world of digital assets, creating fortunes.

Oh btw, we are not exaggerating when we say “fortune.”

There is the case of an investor who transformed a modest $8,000 investment into a jaw-dropping $5.7 billion fortune thanks to Shiba Inu. In another remarkable story, an investor turned $27 into over a million in a matter of weeks thanks to PEPE.

With stories like these, how can you not have FOMO? There is a reason why memecoins have consistently been one of the strongest narratives in crypto.

In today’s newsletters, let’s understand the method behind the madness and see why memecoins have risen to rule crypto.

The Birth of Memecoins: Where It All Began

It all started with Dogecoin. Launched in 2013 by software engineers Billy Markus and Jackson Palmer, Dogecoin was intended to poke fun at the speculative nature of the cryptocurrency market. With its Shiba Inu dog logo, Dogecoin quickly gained a loyal following that treated it as more than just a joke.

Thanks to its active community, Dogecoin began to be used for online tipping and charitable donations, growing its popularity over time.

But the real turning point came when Elon Musk started tweeting about Dogecoin, famously dubbing it "the people's crypto." His endorsement brought Dogecoin into the mainstream, igniting a surge of interest and sending its price to new heights. What began as an internet meme had now become a legitimate digital asset, and early Dogecoin investors suddenly found themselves sitting on life-changing gains.

Memecoins Take Off: The Rise of Shiba Inu and PEPE

As Dogecoin’s success captured the world’s attention, a new wave of memecoins followed. Among the most successful was Shiba Inu (SHIB), which launched in 2020 as a "Dogecoin killer." Despite its tongue-in-cheek origin, Shiba Inu rapidly climbed the ranks of the cryptocurrency market, reaching peak market cap of $36B in 2021 (currently at $10.6B).

Another memecoin that made headlines was Pepe Coin (PEPE), inspired by the popular Pepe the Frog meme. Launched as a lighthearted joke, PEPE saw an unprecedented surge. The cultural relevance of Pepe, combined with the community’s enthusiasm, allowed it to become one of the fastest-growing memecoins in history, peaking at a market cap of ~$7B.

What Drives Memecoin Success?

Memecoins differ from traditional cryptocurrencies in that they don’t aim to solve real-world problems or introduce groundbreaking technology. Instead, their success is built on community engagement, viral content, and social media influence. Here’s why memecoins have captured the attention of millions:

1. Meme Culture: Memes are an integral part of internet culture, resonating with millions of people across the globe. memecoins tap into this trend, creating a sense of fun and camaraderie. For many, owning a memecoin is like being part of an exclusive club where humor meets finance.

2. Social Media Hype: Influencers, celebrities, and social media platforms have played a massive role in the rise of memecoins. From tweets by Elon Musk to viral Reddit discussions, memecoins thrive on visibility. The more people talk about them, the more their value grows.

3. FOMO: The success stories of people turning small investments into massive fortunes have fueled the desire to get in on the next big memecoin. Investors don’t want to miss out on what could be the next Dogecoin or Shiba Inu, leading to explosive growth in demand.

4. Community Power: Memecoins are often driven by passionate communities that work together to promote the coin and drive its adoption. These communities create memes, videos, and even songs to spread the word, making memecoins not just a financial asset but a cultural movement.

5. Tokenizing Culture: Memecoins provide a way to tokenize the cultural zeitgeist, turning viral moments into digital assets. Anything that captures widespread attention can quickly become a meme coin, blending pop culture with financial speculation. For example, the recent viral sensation, the baby hippo Moo Deng, has already been transformed into a meme coin, with communities rallying behind it. Then we also have PolitiFi coins like BODEN, Kamala Horris, and MAGA which tokenizes political figures. Memecoins thrive on the power of virality, allowing people to engage with and invest in trends and memes as they happen. 

Base and Solana: The Memecoin Playground

Base and Solana have both emerged as primary memecoin playgrounds.

With the ability to handle up to 65,000 transactions per second, Solana has become an ideal platform for memecoin trading, which requires fast and affordable transactions.

This has attracted major user and developer interest, leading to the launch of successful memecoins such as Dogwifhat (WIF) and Bonk (BONK), both achieving multi-billion-dollar market caps. 

Fueled by memecoins and its Web3 gaming ecosystems, Solana consistently ranks as one of the busiest networks in the Web3 space.

As of now, total non-vote transactions on Solana have almost touched 45 million.

On the other hand, Base, an Ethereum Layer 2 solution developed by Coinbase, is quickly emerging as a competitor. Base leverages Ethereum's infrastructure while offering cheaper, faster transactions, making it an attractive alternative for memecoin projects. 

Though still in its early stages, Base has shown potential, with projects like Brett (BRETT) and Toshi the Cat (TOSHI) gaining traction. 

The number of Base memecoin holders holding at least 10,000 meme coins has reached almost 7,000.

Don’t Get Carried Away Though

We get it.

All these stories about people becoming overnight millionaires definitely does a number on your FOMO.

However, for every success story, we have a story of someone losing their life savings to memecoins

Many investors experience a cycle of initial skepticism, impulsive investment, and unhealthy fixation on their coin’s performance, which clouds judgment on when to take profits or minimize losses. 

This behavior often results in repeated investment in new memecoins, leading to diminishing returns and greater financial losses. To navigate the risky memecoin market successfully, investors must approach it with caution, discipline, and a strong focus on risk management.

This is one of the main reasons why we created The Coiners. Instead of making blind speculative investments, get proper guidance and memecoin trade setups from our experts to make your trades.

Instead of investing in garbage, invest in memecoins that have real value. Plus, know exactly when to enter and exit your positions.

Sign up ASAP to The Coiners so that you don’t miss out on tomorrow’s livestream with VirtualBacon.

Key Topics of Discussion:

• Bitcoin’s Path to a New ATH: Is a record-breaking surge imminent, or are there obstacles ahead?

• Altcoin Market Primed for a Rally: Which altcoins are poised to take off?

• Hidden Gems: Which under-the-radar coins are showing real potential?

• Market Sentiment & Trends: What’s driving the latest crypto market momentum?

• Investment Strategies: How to position your portfolio for maximum gains during this bullish phase.

• Q&A with VirtualBacon: Get your burning crypto questions answered live!

Time: October 23rd at 10AM EST
Exclusively for The Coiners members