Meme coins are cryptocurrencies that don't take themselves too seriously. Many of them are based on internet memes (hence the name) or have other humorous elements.
Even though the biggest meme coins started out as jokes, they can create real monetary value. Combined, meme coins are worth $61 billion (as of Oct. 31). While some people have struck it rich buying meme coins, you could be in for disappointment if you try to do the same.
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Meme coins are closer to gambling than investing
The appeal of meme coins is the possibility of buying one that explodes in value. But very few meme coins have any success at all, and the ones that do are rarely successful for long. For an idea of just how slim the odds are, CoinGecko currently lists over 5,000 meme coins.
Just one of them, Dogecoin (DOGE 8.73%), accounts for nearly half of the meme coin market. It's currently worth $28 billion. Other big names include Shiba Inu, Pepe, and Official Trump. That's a handful of cryptocurrencies out of thousands, and their success came from temporary hype, not any underlying value.
CRYPTO: DOGE
Key Data Points
It usually doesn't take long for meme coins to come crashing back down to Earth, either. After reaching an all-time high in May 2021, Dogecoin lost over 50% of its value by the end of that month.
There are quality cryptocurrency investments out there, but meme coins don't fit that description. It's practically impossible to accurately predict which ones will increase in value, so making money from them is a matter of luck.
