Meme coins are cryptocurrencies inspired by memes. They tend to be highly volatile compared to major cryptocurrencies like bitcoin (BTC) and ether (ETH). This is most likely due to the fact that meme coins are heavily community-driven tokens. Social media and online community sentiments typically influence their prices. This frequently results in a lot of hype, but also FOMO and financial risk. While some traders became wealthy through the use of meme coins, many others lost money due to market volatility.

Meme coins are a type of cryptocurrency inspired by internet memes, trends, or humorous themes rather than a foundational technology or practical utility. Unlike major cryptocurrencies like Bitcoin or Ethereum, which aim to solve specific financial or technological challenges, meme coins are typically created with playful or speculative intent. Dogecoin, the first and most famous meme coin, was launched as a joke in 2013 but gained popularity due to its lighthearted nature and enthusiastic community.

Meme coins are highly volatile and often experience sharp price swings influenced by social media hype, celebrity endorsements, or viral trends. Although they lack intrinsic value or serious projects backing them, meme coins have drawn significant attention from retail investors seeking quick gains, though they come with high risks due to their speculative nature.