What Is A Meme Coin In Crypto?

Meme coins are a unique type of cryptocurrency whose growth is driven by hype in internet culture. Although they don't have serious technological backing like other crypto, these coins occupy a significant niche in the market. In this article, we will take a closer look at the nature of meme coins, their working principles, and use cases. We will also share with you the most promising coins in 2025, tell you how to buy them and how to avoid possible risks in working with meme coins.

What Are Meme Coins?

Meme coins are cryptocurrencies that originate from internet memes and popular cultural phenomena, due to which they usually have a joking nature. Thus, their value depends on social media popularity, viral campaigns, or celebrity endorsements. A prime example is Dogecoin, which originated from a meme featuring a dog of the Shiba Inu breed.

Meme coins were created to transfer the humorous nature of memes to the crypto market, creating a new form of digital currency. Another idea behind their development was to provide a lower threshold of entry into the market for people with little knowledge and experience in the field. Meme coins have certainly succeeded; this is evidenced by the emergence of other coins on the market, which number in the hundreds, and a market capitalization that as of February 2025 is around $60 billion.

How Do Meme Coins Work?

Like other cryptocurrencies, meme coins operate on blockchain technology, providing decentralization and security for transactions. They are usually built on existing blockchain platforms and can use their tools to implement additional features (e.g., smart contracts on Ethereum). Meme coins can also be bought, stored, or traded on various crypto exchanges, but it is worth remembering that their value and demand depend on community involvement.

What Are Meme Coins Used For?

Let's now take a closer look at what meme coins can be used for:

Tipping. Meme coins are mostly of low value, which makes them popular as tips. For example, bloggers on Reddit or YouTube receive meme coins from their subscribers as donations.

Charity. Some meme coins are used for charitable donations. This can be raising money for environmental projects or supporting sports teams.

Payment for goods and services. Meme coins can be used like other cryptocurrencies to pay for products of companies. However, not everyone accepts this type of crypto, so this list is limited.

Investing. Although meme coins have low value and slow growth, some crypto-activists buy them hoping that their price will rise dramatically due to viral trends. In that case, they will be able to capitalize on the price fluctuations.

Experiments. Developers like to use meme coins in attempts to make some innovations in the field of new blockchain technologies or economic models.