A memecoin is a cryptocurrency that originated from internet memes or jokes, often featuring humorous branding and community-driven development rather than technological innovation.
Famous memecoins include Dogecoin (DOGE) featuring the Shiba Inu dog, Shiba Inu (SHIB), Pepe (PEPE), and Floki (FLOKI). These often have large supplies and low individual token prices.
Characteristics include strong community focus, viral marketing, extreme price volatility, celebrity endorsements, and limited utility beyond speculation.
Risks of memecoins: Extreme volatility, pump and dump schemes, lack of fundamental value, rug pull potential, and FOMO-driven buying. Always invest only what you can afford to lose.