Dogwifhat

Lore & Background

In late 2013, Dogecoin was released after being created as a joke on the Doge meme by software engineers. This sparked the creation of more meme coins. In October 2021, there were 124 meme coins circulating. Notable examples include Dogecoin and Shiba Inu. In early 2021, Thailand's Securities and Exchange Commission banned meme coins as part of a crackdown on digital goods with 'no clear objective or substance'. In late 2021, advertisements promoting the meme coin Floki Inu in London led to investigations around promoting the meme coin, considered to be an unregulated financial product by the United Kingdom Advertising Standards Authority (ASA). Meme coins increased in popularity in 2021 and 2022 when Elon Musk endorsed Dogecoin. He posted several tweets about the coin, including saying that Tesla-branded merchandise could be purchased with Dogecoin. Musk was sued by investors who accused him of using Dogecoin as an unregistered security to operate a pyramid scheme. Meme coins have seen a resurgence following Donald Trump's victory in the 2024 United States presidential election. One such example is Fartcoin, whose valuation briefly surpassed $2 billion. Trump himself launched the meme coin $Trump three days before his second inauguration.

Reader's Guide

Meme coins derive their price primarily from social media momentum and celebrity association. Their prices can skyrocket rapidly as new investors, drawn by viral attention or fear of missing out (FOMO), pour in funds. However, this growth is typically unsustainable, as the price depends heavily on a continuous influx of new buyers. When interest wanes or new investment slows, meme coins frequently experience sharp collapses, as there is little fundamental value to support their market capitalization, much like how Ponzi schemes rely on new capital to pay returns to earlier investors. The term is often used dismissively, comparing the value or performance of those cryptocurrencies to that of mainstream digital assets. Supporters, on the other hand, observe that some memecoins have acquired social currency and high market capitalizations.

Did You Know?

• In December 2024, Haliey Welch, who became viral online for the 'hawk tuah' meme, issued $HAWK and it reached a peak of $490 million before plummeting to $25 million.
• On 15 April 2025, hackers compromised UK Government Minister Lucy Powell's verified X account to promote a fraudulent 'House of Commons' cryptocurrency ($HCC).
• Commentators have compared meme coins with the speculative frenzy and collapse of the NFT market in 2022. American investor David Einhorn stated that, 'We have reached the "Fartcoin" stage of the market cycle ...