The path of Meme Token: From joke to scam

Starting as a joke, meme coins have become an indispensable part of the cryptocurrency ecosystem. Based on famous characters and humor, some coins have found their target audience and attracted many supporters, forming strong communities and developers. It seems like this field has some examples of further development. But rather than providing something unique or creative, overall, meme coins have become one of the most volatile and speculative markets. The community closely follows every word of the opinion leaders to turn what is suitable into a token, and newcomers hope to get rich from it (but only those involved can get rich), even politicians are involved in this race. What could lead to this trend and how does it threaten the cryptocurrency industry, we will understand in the document. This is not a joke The most famous representative of this segment is considered to be Dogecoin (DOGE). This is the first coin to join and merge into the top 10 cryptocurrency assets by market capitalization (CoinGecko), competing with more serious projects. Dogecoin was formed as a joke about the rapidly growing number of cryptocurrencies, but a strong community immediately formed around it. The most important ambassador of the project is billionaire Elon Musk - his enthusiastic promotion has reignited the network's development and expanded the user base. Among other things, this is due to celebrities like Snoop Dogg, Lil Yachty, and Mark Cuban. Dogecoin probably owes its popularity to its non-serious approach to serious things. The project has infrastructure, development plans, and a group of developers. In 11 years, the meme token has come a long way to be accepted, becoming a popular tool among traders to pay for purchases. It also sparked the trend of the "dog coin". Shiba Inu and Floki Inu turn out to be as good as Dogecoin in terms of ideas and content. The project team is actively developing it, providing the community with a meta-asset solution, L2 on Ethereum, and plans to transform SHIB - the main asset of the ecosystem - from a meme into a utility token. Serious plans are also shared at Floki Inu. By the end of 2024, developers announced the preparations for launching ETP for European investors. The examples above demonstrate that meme coins have the potential to develop into a complete cryptocurrency ecosystem with real developments. However, this requires the effort of the team, attention to the final product, and community support. As reality shows, such projects are quite exceptional, and most representatives of the industry become tools for speculation. Youthful and bold Mem-coins have lowered the barrier to entry - no longer needing to buy the first or second cryptocurrency in hopes of making X, now you can get them by investing in mem-coins in a timely manner. But even this phase still restrains speculation - at least the innovators need to understand the technical part, something not everyone can understand. The situation has changed thanks to Pump.fun - a Solana-based platform that simplifies the process of creating new assets to the maximum. Since the launch of the 'meme-token factory', its total revenue from commissions has reached $431 million. Users have released over 6.3 million dong with a total market capitalization of over $5 billion, but not all of them continue to exist. The ease of creating a meme token has led to the proliferation of speculative coins that are not backed by anything. The scammers' job has become much easier, and pump-and-dump schemes are on the rise. Any statement from market leaders is seen as a sign of the emergence of another shitcoin. In January 2025, a class action lawsuit was filed against Pump.fun, Baton Corporation's operating unit. The project is accused of selling unregistered securities in token form, supporting Ponzi and Pump & Dump schemes. However, this incident occurred at a time when the SEC and regulatory authorities in general have started to make changes in their approach to managing the cryptocurrency market. Politicians The meme cryptocurrency sector has attracted Donald Trump, who has surprisingly become friendly with digital currencies. He is not ashamed of his status as a national leader, potential legal violations, or ethical issues. Two days before the inauguration, this politician announced the launch of TRUMP, a currency that surged and quickly corrected - investors suffered losses of about $2 billion. Melania Trump followed her husband's lead. At the time of writing, neither the SEC nor any other regulatory agency has shown interest in this asset. At the same time, a strange story is unfolding on another continent. On February 9, the account X of the President of the Central African Republic (CAR) Faustin Archange Touadera announced the launch of the CAR meme token issued by the state. Many people doubt the reality of what is happening, although at its peak, the market capitalization of this asset reached $1.05 billion. But within a day, the CAR price had dropped by 96%, and if it was really an "experiment" designed to help develop the country and bring the nation onto the international stage, then it had failed. The most notorious project title to date belongs to LIBRA, not without the help of Argentine President Javier Miley. He promoted the token, which boosted its growth, but it was not sustainable. Subsequently, the head of state tried to distance himself from the project, but he was still accused of fraud, participating in Pump & Dump schemes, and faced charges. For some reason, the regulatory authorities are no longer interested in this situation, but instead, researchers and analysts have stepped in. They see a connection between the groups responsible for launching the meme tokens LIBRA and MELANIA. Consequence What's happening doesn't seem to be a disaster, but it has posed serious reputation risks to the cryptocurrency industry, which seems to have passed the "wild west" phase. Speaking to reporters, BOB co-founder Dom Hartz noted that the scandals surrounding LIBRA, and earlier TRUMP, MELANIA, BARRON, and HAWK, have tarnished Solana's reputation. Therefore, the network, considered the "Ethereum killer," is increasingly associated not with innovation but with fraud, deception, insiders, and marketing programs. Solana's story as the best retail acceptance network has just changed to be related to fraud and insider trading. It will take time to fix this, co-founder of Rollup Ventures, aka Andy, believes. According to a survey by Chainplay of 1,066 respondents, nearly 80 percent of cryptocurrency investors have invested in meme coins approved by the president TRUMP, CAR, and LIBRA, but two-thirds have lost money. Instead of promoting long-term participation, these meme coins have led to significant disappointment. High volatility, quick Pump & Dump cycles, and lack of sustainable value have pushed many people away, researchers say. According to other data, for 37% of investors, the "presidential" token is their first experience in the digital asset industry. 21% of new participants refuse to join the market afterwards. Therefore, an unstable and speculative field threatens to hinder the widespread adoption of cryptocurrencies, which the industry is striving for. Conclusion Most meme coins are no longer projects with history, infrastructure, and specific goals. Now, they look like an opportunity to get rich for insiders, scammers, and those looking to make quick money. If this industry is to grow in the long term, it is important that participants make users see cryptocurrencies not only as a speculative tool but also as a financial system of the future.