What is a Memecoin? From Dogecoin to Dogwifhat

In the early days of cryptocurrency, things were fairly serious. Bitcoin aimed to solve the problem of decentralised money, and Ethereum was pitched as a kind of global computer for running code.

Then Dogecoin arrived.

Created in 2013 as a joke that poked fun at crypto’s self‑importance, it used a Shiba Inu dog from a popular internet meme as its mascot. To almost everyone’s surprise, the joke did not fade away. It helped create a multi‑billion dollar corner of the market that often ignores traditional financial logic.

Today, memecoins are a major force in crypto. They act as social financial instruments, where value is driven by humour, community strength and how much attention they can attract.

Defining a memecoin

A memecoin is a cryptocurrency whose value is tied to internet memes, viral trends or pop culture references. Unlike a typical “utility token” that might give access to a platform, or a “store of value” asset like Bitcoin, memecoins usually rise and fall based on social sentiment.

Many of them sit on advanced blockchains and use familiar crypto technology. Even so, their main purpose is community engagement rather than a specific technical use case.

If the community is loud, active and growing, prices often climb. If people lose interest, trading volume can disappear and the price can fall towards zero.

The psychology of “unit bias”

Most memecoins have a huge circulating supply, often in the billions or trillions. That means each token can trade at a tiny price, for example AUD $0.00001.

This taps into something known as “unit bias”. People often feel better holding 1,000,000 units of a cheap coin than 0.01 of a more expensive coin like Bitcoin, even if they spent the same amount of money. In reality, the number of units matters less than the total value and the percentage of the overall supply you own.

The major players

The memecoin sector has grown far beyond the original Shiba Inu mascot. Below are some of the best‑known examples.

Dogecoin (DOGE)

Dogecoin is the original memecoin. Unlike many later projects, DOGE runs on its own blockchain, which is a fork of Litecoin.

It is widely recognisable and has been regularly mentioned by public figures such as Elon Musk. Some merchants accept DOGE for payments, partly because transaction fees are usually low compared to older networks.

Shiba Inu (SHIB)

Shiba Inu launched on Ethereum promoting itself as the “Dogecoin Killer”. It started as a joke, but the team and community tried to expand it into a wider ecosystem.

This includes a decentralised exchange called ShibaSwap and a Layer‑2 network known as Shibarium. The aim has been to give SHIB more practical uses, not just meme value.

Pepe (PEPE)

Released in 2023, Pepe went in the opposite direction. It made almost no claims about utility at all.

Based on the long‑running “Pepe the Frog” meme, it promoted itself as a “pure” memecoin. Its rapid rise highlighted a core feature of the sector: if the meme is widely recognised and the community is enthusiastic, the token can gain serious traction very quickly.

Bonk (BONK) and Dogwifhat (WIF)

BONK](https://www.coinjar.com/au/buy/bonk) and dogwifhat are examples of Solana‑based memecoins that became central to the 2024–2025 market cycle.

BONK launched with a large airdrop to Solana users, helping to revive interest in the network after a major downturn. Dogwifhat (often shortened to WIF) became famous for its incredibly simple concept: a dog wearing a pink knitted beanie.

This kind of absurd humour is common in the memecoin world and often plays a bigger role than any underlying technology.

How it works in practice

To really understand memecoins, it can be helpful to view them more like social networks than tech companies.

The launch and viral spread

On fast chains such as Solana, a developer can create and launch a new token in minutes. Sometimes the theme is based on a breaking news story, a viral video or an existing meme character.

The creator provides some initial liquidity, then starts spreading the word on social media platforms like X (formerly Twitter), Telegram or Discord. If early traders and influencers pick it up, the token can gain visibility very quickly.

Community takeover

The long‑term success of a memecoin often depends on whether a strong, almost “cult‑like” community forms around it.

Supporters promote the token by making memes, replying to posts, joining comment threads and encouraging others to buy. In crypto circles, this is called “shilling”.

If the story catches on, a feedback loop can form. Rising prices attract more attention, which brings in new buyers worried about missing out (FOMO), which can drive prices even higher. The same loop can also work in reverse during a sell‑off.

The “Supercycle” shift

In 2024 and 2025, many traders described the market as being in a “Memecoin Supercycle”. During this period, memecoins regularly outperformed more established projects that had clear technical roadmaps.

Two notable trends appeared:

• PolitiFi tokens, which referenced or parodied political figures and events.
• AI‑driven memecoins, where automated agents or chatbots actively promoted their own tokens on social media.

For some investors, this period highlighted how powerful narrative and attention can be, even compared with traditional ideas like strong fundamentals or long‑term development. By the end of 2025, the cycle had cooled somewhat.

Risks and red flags

Memecoins are often considered the highest‑risk area of the crypto market. For every token that performs well, there are many more that fade to zero.

• Extreme volatility
  Big price swings are normal. It is common for a memecoin to fall 50% in an hour or climb 100% in a day.
  This can be exciting, but it also means many people end up buying near the top of a hype cycle, then watching their holding rapidly lose value.

• Rug pulls
  Creating a token is cheap and quick, which makes it attractive for scammers.
  In a typical “rug pull”, a team launches a token, attracts liquidity from traders, then removes that liquidity pool and disappears with the funds. After this, the token is effectively worthless.

• Concentration risk
  In many memecoin projects, a small number of “whales” hold a large share of the total supply.
  If these wallets sell, it can trigger a sharp price drop. Smaller holders can be left with no practical way to exit without taking heavy losses.

• Lack of staying power
  Internet memes move fast, and yesterday’s joke can become old news very quickly.
  When interest shifts to the next big thing, trading volume and liquidity in older memecoins usually drop away. Only a small number manage to stay relevant for more than one market cycle.

Given these risks, memecoins are often treated as speculative trading assets rather than long‑term investments.

Why memecoins matter

Despite the chaos and the jokes, memecoins now form a permanent part of the crypto world.

For many people, they are a first step into digital assets. The idea of buying a fun, low‑priced token can feel more approachable than learning about Bitcoin’s monetary policy or Ethereum’s smart contracts. In the process, new users often learn how to set up a wallet, use a decentralised exchange and manage private keys.

Memecoins also show how open crypto networks can be shaped by culture and community, not just by code. Anyone can launch a token, anyone can join the conversation and prices are influenced in real time by crowd behaviour.

That freedom comes with serious risk. Memecoins should be approached with care, small position sizes and a clear understanding that the entire value can disappear.

They represent the messy, experimental and highly social side of internet‑driven finance, where jokes can move markets and attention is often the most valuable asset of all.