What is a memecoin? Why joke cryptocurrencies swing so wildly
By SendPay Business · · 2 min read
A memecoin is a cryptocurrency inspired by an internet joke, meme or trend rather than by a product or service. Its price is driven mainly by online attention, which makes it one of the riskiest kinds of crypto.
Where memecoins came from
Dogecoin was created in 2013 as a joke based on the Shiba Inu 'doge' meme. It grew a large following, and many copycat coins have been launched since, often themed on animals, celebrities or viral moments.
Why the prices swing so much
Most memecoins have no product, cash flow or use behind them, so their price depends on how many people want to buy at that moment. A single social media post can send the price up or down sharply within hours.
Risks to understand
- Prices can fall close to zero and may never recover.
- Many new memecoins are rug pulls or pump-and-dump schemes.
- Some are hard to sell because few people are trading them.
- Only use money you could afford to lose completely.
Where SendPay fits
SendPay platforms let your customers buy, sell and hold crypto inside your own branded app, with assets held with regulated partners and a trading fee you set. SendPay tells you in writing which licences apply to your platform before you pay.
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Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.