Meme coins: Fast gains or crypto gambling?

Meme coins have exploded in the crypto market, attracting investors with promises of fast profits and viral hype. These digital tokens, often inspired by internet memes and pop culture, like Dogecoin, Pepe, Dogwifhat and most recently Trump coin, do not usually offer clear utility. Instead, their value mostly depends on social media buzz, influencer endorsements, and community enthusiasm. In 2025, meme coins remain a controversial yet dominant trend in crypto trading. 

Viral but vulnerable: the rise of meme coins 

Meme coins are typically created for humour, social engagement, or to ride viral internet trends, rather than to solve real-world problems. Despite this, they are widely known for their popularity and massive online appeal. Many investors are drawn to meme coins because of the potential for quick, large returns. 

For example, Trump-themed meme coins saw explosive growth in early 2024, with MAGA meme coin (TRUMP) briefly surpassing a $500 million market cap, despite offering no real utility and being driven largely by political hype and social media buzz. 

Analysis reports indicate that in 2024, between 40,000 and 50,000 new meme tokens were launched daily, with numbers soaring to 100,000 during viral surges. Solana tops the list of blockchains for meme coin activity, generating 17,000 to 20,000 new tokens each day. 

Chainplay’s ‘State of Memecoin 2024’ report found that over half (55.24%) of the meme coins analysed were classified as ‘malicious’. 

The risks of rug pulls and scams in meme coin projects 

Beneath the humour and viral appeal, meme coins often hide serious structural risks. Many are launched by developers with little to no accountability, and most operate with centralised liquidity pools controlled by a small number of wallets. The setup allows creators or early holders to pull liquidity or dump large token amounts without warning, leading to devastating price crashes—commonly referred to as ‘rug pulls.’ 

On-chain data regularly reveals that a handful of wallets control the vast majority of supply in newly launched meme tokens, making market manipulation easy and trust almost impossible. These coins are rarely audited, lack transparency, and often have no clear roadmap or long-term utility, which leaves retail investors highly exposed. 

The combination of hype-driven demand and opaque tokenomics makes meme coins a fertile ground for fraud and manipulation, further eroding public confidence in the broader crypto ecosystem. 

Gambling disguised as investing: The adrenaline rush of meme coins 

Meme coins tap into a mindset that closely resembles gambling more than traditional investing. The entire culture around them thrives on adrenaline-fueled speculation, where every price spike feels like hitting a jackpot and every drop triggers a high-stakes rollercoaster of emotions. Known as the ‘degen’ culture, traders chase quick wins fuelled by FOMO, hype, and the explosive reach of social media.

The thrill-seeking mentality turns meme coin trading into a game of chance. Investors often make impulsive decisions based on hype rather than fundamentals, hoping to catch a sudden pump before the inevitable crash. 

It is all about momentum. The volatile swings create an addictive cycle: the excitement of rapid gains pulls traders back in, despite the constant risk of losing everything.

While early insiders and large holders strategically time their moves to cash out big, most retail investors face losses, much like gamblers betting in a casino. The meme coin market, therefore, functions less like a stable investment arena and more like a high-risk gambling environment where luck and timing often outweigh knowledge and strategy. 

Is profit from meme coins possible? Yes, but…

While some investors have made substantial profits from meme coins, success requires expert knowledge, thorough research, and timing. Analysing tokenomics, community growth, and on-chain data is essential before investing. Although they can be entertaining, investing in meme coins is a risky gamble. Luck remains a big key factor, so meme coins are never considered safe or long-term investments.

Meme coins vs Bitcoin: A tale of two mindsets 

Many people assume that all cryptocurrencies share the same mindset, but the truth is quite different. Interestingly, cryptocurrencies like Bitcoin and meme coins are based on contrasting philosophies and psychological drivers.

Bitcoin embodies a philosophy of trust through transparency, decentralisation, and long-term resilience. It appeals to those seeking stability, security, and a store of value rooted in technology and community consensus—a digital gold that invites patience and conviction. In essence, Bitcoin calls for building and holding with reason and foresight. 

Meme coins, on the other hand, thrive on the psychology of instant gratification, social identity, and collective enthusiasm. They tap into our desire for excitement, quick wins, and belonging to a viral movement. Their value is less about utility and more about shared emotion— the hope, the hype, and the adrenaline rush of catching the next big wave. Meme coins beckon with the thrill of the moment, the gamble, and the social spectacle. It makes meme coins a reflection of the speculative and impulsive side of human nature, where the line between investing and gambling blurs.

Understanding these psychological underpinnings helps explain why the two coexist in the crypto world, yet appeal to vastly different types of investors and mindsets. 

How meme coins affect the reputation of the entire crypto market

The rise and fall of meme coins do not just impact individual traders—they also cast a long shadow over the credibility of the entire crypto industry. 

High-profile scams, rug pulls, and pump-and-dump schemes associated with meme tokens erode public confidence and validate sceptics’ concerns. Many retail traders enter the meme coin space with high hopes and are quickly disillusioned by manipulation and sudden losses. 

This leads to a sense of betrayal, triggering risk aversion and a generalised mistrust toward all crypto assets, even those with strong fundamentals like Bitcoin or Ethereum. Such disillusionment does not stay contained. It spills over into mainstream sentiment, deterring new investors and slowing institutional adoption. 

As more people associate crypto with gambling and scams rather than innovation and decentralisation, the market’s growth potential suffers. In this way, meme coins—though intended as jokes—could have serious consequences for the future of blockchain credibility. 

Trading thrills or ticking time bomb?

Meme coins may offer flashes of fortune, but their deeper role in the crypto ecosystem raises a provocative question: are they reshaping finance or just distorting it? In a market where jokes move millions and speculation overrides substance, the real gamble may not just be financial—it could be philosophical. 

Are we embracing innovation, or playing a dangerous game with digital dice? In the end, meme coins are not just a bet on price—they are a reflection of what kind of future we want to build in crypto. Is it sustainable value, or just viral chaos? The roulette wheel is still spinning. 

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