In a bizarre move, three days before his inauguration as US President, Donald Trump launched $Trump, a meme coin that sent shockwaves through the cryptocurrency market. The coin initially soared in value but then dropped to around $40 just as incoming First Lady Melania Trump launched her own meme coin, $Melania.
So, what exactly are meme coins? They’re digital assets based on popular internet memes or jokes, often with little technical development involved. Most meme coins operate on top of existing blockchain technology and are designed to be speculative, meaning users buy them in the hopes that their value will increase rapidly.
However, this approach is fraught with risks, including the potential for “pump and dump” schemes, where creators hype up the project only to sell off their tokens at a profit. The lack of regulation in the crypto market means investors have limited recourse if something goes wrong.
Meme coins have gained popularity over the past year, partly due to the launch of platforms like pump.fun, which allows anyone to create a meme coin easily. Trump’s involvement has also emboldened the community, with many young men trying to make quick riches through these digital assets.
The value of meme coins can be influenced by social and internet culture, as seen in the case of Andy Ayrey, who created an AI-powered account that promoted a Goatse-themed token to massive success. However, this also highlights the issue of low liquidity, which can lead to significant price drops when investors sell their tokens.
Institutional investors are making big profits from crypto, while ordinary people are losing money. Trump’s meme coin is no exception, with some critics arguing that it’s a conflict of interest due to his ownership of entities collecting trading fees.
Ultimately, meme coins represent a wild and unregulated ride in the world of cryptocurrency. While they may be entertaining, they also carry significant risks for investors who don’t fully understand them.
Source: https://www.theguardian.com/technology/2025/feb/09/from-dogecoin-to-trump-everything-you-need-know-about-the-wild-world-of-meme-coins