it’s a story that repeats itself, again and again, as people chase easy money. The cycle thrives when markets rush with activity and money flows freely, and it persists even in tougher times when sentiment sours and scarce gains remain.
This is the meme coin phenomenon, the world of memecoins or shitcoins, often described as one of the most intoxicating and sometimes polluting corners of the cryptocurrency space, alongside security breaches. Recently, PEPE, a token born from the Pepe the Frog meme, surged in price and drew the attention of newer investors.
It isn’t alone. Yesterday, LADYS, another memecoin from a nameless collection of anime avatar tokens, gained 5250 percent in a single day. As with many celebrity-driven surges, attention followed after a notable endorsement. Dogecoin continues to surface in discussions spurred by high-profile tweets, and in recent hours, SPONGE has rallied by about 4250 percent.
The phenomenon of memecoins or shitcoins
In recent years, cryptocurrencies have shifted from a hidden curiosity to a widely discussed investment trend. Beyond the pioneers such as Bitcoin and Ethereum, a growing number of digital currencies have emerged. In this expanding landscape, two categories attract substantial interest and debate: memecoins and shitcoins.
Memecoins are cryptocurrencies tied to internet memes and often gain value primarily from popularity on social media rather than foundational technology or real-world utility. The best known example remains Dogecoin, which started as a joke and now carries a multi-billion dollar market cap. There are many others that enjoy substantial popularity, such as Shiba Inu and Floki.
Shitcoins, on the other hand, is a pejorative term used to describe coins seen as worthless or misleading, with little or no value supporting their price.
Even as these coins deliver rapid gains, the volatility and lack of regulation raise the risk of sizable losses for individual investors. One notorious case involved a token that rose amid the hype of a popular Netflix series and later collapsed.
They are issuing a coin based on the “Squid Game,” the price is skyrocketing but buyers can now withdraw money
like a casino, players can win at times, but in the long run, the house often wins. So who is “home” in the memecoin and shitcoin world?
cryptocurrency developers
Developers behind these coins often come from early fundraising rounds or ICOs. By issuing a new currency, creators can hold a large share of the total supply, which can become extremely valuable if the currency gains traction.
But this setup can invite price manipulation and pump-and-dump schemes, where prices are artificially inflated before masse selling for profit.
Exchange owners
The largest exchanges profit from memecoins and shitcoins through trading fees, regardless of whether prices rise or fall. They earn more when there is higher trading activity on their platforms. Listing new coins often brings additional revenue through listing fees paid by developers. In business, few things are done without compensation.
Influencers and Promoters
Social media and cryptocurrency supporters frequently engage in speculation around memecoins and shitcoins. Some may be paid to promote certain coins to their followers, creating artificial demand. Others buy large quantities of cheap currency and then push its value higher through promotion, aiming to sell at the peak.
Individual investors pay for the lot
For many individual investors, memecoins and shitcoins seem like a quick path to riches. In reality, however, the real beneficiaries are often the developers, exchange owners, and the influencers who promote them. As with any investment, thorough research and risk awareness are essential.
Investors should exercise extra caution with memecoins and shitcoins due to a lack of transparency, high volatility, and the potential for market manipulation.
«The key with cryptocurrencies is to learn ahead and use easy tools»
A high risk investment
It is important to understand that investing in cryptocurrencies is generally high risk. Price swings can be extreme and rapid, which means traders can lose their money quickly. A lack of regulation and oversight adds to the risk of fraud and manipulation. In recent months, examples have been plentiful.
Despite these caveats, the lure of quick wins can be strong. Still, similar to gambling, the odds favor the house. The biggest profits often go to those behind the scenes who promote the currency and profit from hype and speculation.
Investing in cryptocurrencies: How to start from scratch without screwing everything up or getting scammed
Memecoins and shitcoins can look exciting because of the potential for high returns, but they remain extremely risky. Most retail investors are more likely to lose money than win. Therefore, approaching these coins with caution, conducting independent research, and understanding the risks is essential before investing any funds.