Meme coins are hot right now know about crypto market.

What are meme coins?

Meme coins are cryptocurrencies that are often based on internet jokes or trends, and often feature funny logos or are related to animals or characters. Celebrities have also joined the movement to launch their own tokens, including singer Jason Derulo, Caitlyn Jenner, boxer Floyd Mayweather Jr. and Trump himself.

Perhaps the most famous meme coin is Dogecoin, a coin shaped like a Shiba Inu dog that has long been promoted by Trump's close ally Elon Musk. Dogecoin, which possibly inspired the name of Musk's Department of Government Efficiency, surged immediately after the election but has fallen by about 40% in the past month.

As with other digital currencies such as Bitcoin, meme coins are based on blockchains – most commonly Solana.

Meme coins are typically very volatile and can experience rapid price fluctuations. Coins typically start at a price of one cent or less, meaning percentage changes can be significant.

They're also sometimes linked to scammers and "rug pulling," where promoters attract buyers and then shut down trading before the coin crashes, giving them a chance to pocket some of the proceeds. Nicolai Søndergaard, a research analyst at multi-chain analytics platform Nansen, told Business Insider that meme coins aren't inherently risky investments. "However, what makes them dangerous is people who launch them with nefarious intentions and play dirty," he said. "This is how we see a lot of problems with tokens that are launched, which quickly rise by several hundred or thousands of percent, and then dump most of it just as quickly."

Why do people buy meme coins?

According to Hsieh, the meme coin was presented as a “get rich quick” scheme based on enthusiasm for cryptocurrencies, with content creators promoting their coins and promising profitable results. “However, after several cases of scams and frauds involving highly inflated coins, a pattern became known to the general public that showed a sudden spike in the value of most meme coins,”