Memecoins, named for famous social media jokes and puns, are a popular form of cryptocurrency whose value is determined mostly by the community. As opposed to Bitcoin, whose value is directly related to factors such as scarcity and market capitalization, memecoins are constantly entering the crypto ecosystem and are quickly bought by trend followers and influencers. As with NFTs, cryptocurrency experts suggest that memecoins gain value as a result of online community interaction. Moreover, memcoins' value fluctuates far more than the value of larger cryptos such as Bitcoin or Ethereum.

Memecoins are a type of cryptocurrency inspired by internet memes and popular culture, often characterized by their playful or satirical nature. Unlike traditional cryptocurrencies like Bitcoin and Ethereum, memecoins typically lack a serious technological foundation or clear use case. Notable examples include Dogecoin, which started as a joke but gained a significant following, and Shiba Inu, which capitalized on Dogecoin's popularity. Memecoins are highly volatile and driven largely by social media trends, celebrity endorsements, and community hype. While some investors have profited from their rapid price surges, memecoins are also considered risky and speculative investments. Their value can fluctuate wildly, making them more akin to gambling than traditional financial assets.