What are meme coins, how do they work and where to buy them?

Even in 2025, the cryptocurrency ecosystem continues to evolve with new proposals and trends. Among the most fascinating and controversial are meme coins, cryptocurrencies inspired by memes, popular culture characters and viral phenomena on the internet.

These coins, often born as jokes or provocations, have unexpectedly gained widespread attention, accumulating enormous market capitalizations and becoming part of the cryptocurrency market by right.

But why is there so much talk about them today? One of the most recent and emblematic examples of this evolution is $TRUMP, the cryptocurrency launched in January by the President of the United States Donald Trump, which quickly reached 18th place in the global ranking of cryptocurrencies by market capitalization, with a value exceeding 50 dollars per token. The meme coin immediately became popular thanks also to the promotion through social media and the support of its community, two key factors that determined its immediate success. In a few days it reached a capitalization of almost 11 billion dollars.

One last great (or rather, huge) example of how meme coins are actually a phenomenon - although originated as a form of entertainment or viral expression - capable of earning a significant place in the cryptocurrency market, pushing many investors to ask themselves what they are, how they work and whether it is worth investing in them, between advantages and risks.

What are meme coins?

Meme coins (or meme coins) are cryptocurrencies whose existence (and popularity) is based mainly on viral phenomena and memes, which are images, videos, or phrases that become particularly popular on the internet. These projects were born as joking episodes or experiments, but over time some have acquired considerable importance, thanks also to the virality of the memes they bring.

The term "meme coin" was born to refer to cryptocurrencies such as Dogecoin, which, in 2013, was created as a parody of Bitcoin. Its brand image, a Shiba Inu dog, immediately became a recognizable symbol thanks to the internet.

However, Dogecoin’s popularity has grown exponentially, especially after influential people like Elon Musk began promoting it via Twitter (now X), thus giving a significant boost to its value. Although it was initially intended as a joke or a game, Dogecoin is now one of the most well-known and used cryptocurrencies in the world.

Some concrete examples of meme coins: here are the most famous

Another example of a successful meme coin is Shiba Inu, which has seen astonishing growth in just a few years. Shiba Inu was inspired by Dogecoin and, despite being a meme coin, it has developed a strong community that has increased its market capitalization, bringing it into the top 10 of the most capitalized cryptocurrencies in the world.

In addition to Dogecoin and Shiba Inu, other meme coins have entered the market, such as Pepe Coin, which is based on the iconic character of Pepe the Frog, known in the internet meme culture. And how can we not mention Akita Inu? Similar to Shiba Inu, Akita Inu has seen its popularity grow thanks to the creation of an ecosystem linked to DeFi and the support of an enthusiastic community.

The goal of meme coins is generally to exploit the enthusiasm and virality of the meme itself, creating a currency that draws value from community interest and market speculation. In this sense, $TRUMP, launched in January 2025 by US President Donald Trump, has been talked about for its rapid rise in the rankings and for its connection with the political figure of The Donald but, in fact, it is only the most recent clear example of how this type of cryptocurrency can have a devastating growth in the markets.

The difference between meme coins and classic cryptocurrencies

But what distinguishes meme coins from traditional cryptocurrencies? Meme coins, unlike other cryptocurrencies such as Bitcoin or Ethereum, are not associated with specific utilities or innovative technologies, as in the case of Ethereum blockchains and DeFi (decentralized finance) solutions. Meme coins often do not have a concrete application outside of their speculation and their symbolic value, which depends on the strength of the memes and the viral impact they can obtain on social media.

Meme coins are mainly developed through online communities, especially on social platforms such as X, Reddit and Telegram, where users actively discuss their favorite projects. One of the most fascinating features of meme coins is their ability to grow through word of mouth and the involvement of influencers or public figures. The value of these coins is, therefore, highly volatile and dependent on collective interest, which also makes them risky and unpredictable.

Who makes money with meme coins?

Those who make money with meme coins are often a combination of different actors operating in the world of cryptocurrencies, and their success depends on a number of factors, including the right time to enter and exit the market and mass speculation. The first group of people who tend to make money with meme coins are the early adopters: those who enter the market when a new meme coin is just launched, before it reaches mass popularity. These investors, often active on social media or within crypto communities, are able to buy the coins at a very low price and sell them when their value explodes thanks to the enthusiasm surrounding them. It’s a timing game, and those who have a good nose for trends can make high profits.

Another group that can benefit from meme coins are definitely the creators and promoters of these coins. Often, behind the launch of a meme coin there are developers, marketers or influencers who are able to exploit the hype around the project to earn money directly. For example, public figures such as Elon Musk, who supported Dogecoin, have a huge influence on the markets and can fuel a significant increase in the value of a meme coin.

Finally, there are also brokers and exchanges, which earn commissions on transactions made by users who buy and sell meme coins. While some gains are evident, it is important to note that meme coins are extremely volatile and the risk of losses is equally high, so much so that many investors enter the market hoping for quick profits without fully understanding the risks associated.

How meme coins work

Meme coins work on a principle similar to other cryptocurrencies, such as Bitcoin or Ethereum. They are created using blockchain, a technology that allows data to be stored and shared in a decentralized way. Blockchain is a public and distributed ledger that keeps track of all cryptocurrency transactions, ensuring that no central entity can modify or control them.

Meme coins, like other cryptocurrencies, are built on smart contracts and use tokens, which are digital representations of money. However, as mentioned, the main difference is that the value of these cryptocurrencies is not tied to a fundamentally useful technology or practical application. Instead, their value is determined by speculative demand, community participation, and the virality of the memes they are linked to. Since there is no practical or innovative function behind many meme coins, they are entirely dependent on the interest they generate.

An interesting aspect is that many meme coins are used primarily for speculative purposes, rather than for day-to-day transactions. For example, Dogecoin is often bought and sold as a speculative investment, with users looking to profit from market volatility. The same phenomenon applies to $TRUMP, which saw a surge in value in a matter of hours thanks to strong media and social media attention.

While creating a meme coin may seem simple, with the support of blockchain and the integration of an online community, the popularity of these coins depends on external factors that are difficult to predict. Meme coins are highly volatile, and their value can fluctuate dramatically in a very short time.

Where to buy meme coins?

Buying meme coins is relatively simple, but it is essential to pay attention to the security and reputation of the platforms you operate on. There are several options for buying meme coins, including centralized and decentralized exchanges.

• Centralized exchanges: Platforms such as Binance, Coinbase, Kraken, and Huobi allow you to buy meme coins, but you need to check if they support the specific token, such as $TRUMP or Shiba Inu. These exchanges offer security and ease of use, but often charge higher fees.
• Decentralized Exchanges (DEXs): In addition to centralized exchanges, decentralized exchanges (DEXs) such as Uniswap (on Ethereum) and Sushiswap (on Ethereum and other blockchains) offer another way to buy meme coins, especially the lesser-known ones. These exchanges allow you to buy meme coins using other cryptocurrencies such as Ethereum or USDC. The great advantage of these exchanges is that users maintain full control of their funds, and transactions are executed directly between user wallets, without the need for a centralized intermediary. However, DEXs require greater familiarity with the cryptocurrency exchange process and the use of compatible wallets such as Metamask or Trust Wallet. Additionally, transaction fees (gas fees) can vary significantly based on network congestion.
• Brokers and Trading Platforms: Some brokers offer the ability to buy meme coins directly with fiat money via credit cards or bank transfers. Platforms like Moonshot, which Trump recommended for buying $TRUMP, are a good option for those looking for a simple interface.

Is investing in meme coins risky? Pros and Cons

Investing in meme coins can be an exciting but risky experience. The pros include the potential for quick profits, especially if they explode in popularity or gain support from influential figures. The speculative nature of these coins allows for quick profits, and supportive communities can often lead to significant market movements.

However, the cons are just as obvious. Meme coins are extremely volatile and can lose value just as quickly as they gain value. Their lack of a solid technological basis or utility makes these investments highly speculative and, for some, even unethical. Meme coin fluctuations are sometimes driven more by crowd psychology than real fundamentals, and investors can end up with significant losses if they don’t stay "on track."

Additionally, the risk of pump and dump (price manipulation) is a very present phenomenon in the meme coin market. The community and influencers can hype a coin, pushing its value up, only to sell en masse once the price has peaked, leaving other investors with coins that quickly lose value.

Choosing investment "environments" can also be decisive. It is important to choose a platform that suits your trading needs, taking into account fees, security, and features offered. With a little research and careful risk management, buying meme coins can become an interesting opportunity in a highly speculative market.

Original article published on Money.it Italy. Original title: Cosa sono le meme coin, come funzionano e dove comprarle