The Black and White of Memecoins: The Wild Ride of Hype, Wealth, and Culture
The Black and White of Memecoins: The Wild Ride of Hype, Wealth, and Culture
Preface: Blockchain Coinvestors’ Perspective on Memecoins
At Blockchain Coinvestors, we focus on investing in the infrastructure, platforms, and applications that are shaping the future of blockchain and digital assets. While we do not invest in or speculate on memecoins, we closely track the phenomenon to understand its impact on the broader crypto ecosystem.
As an early-stage blockchain investor, our focus remains on backing the foundational technologies and institutional-grade blockchain businesses that are driving long-term value creation. However, memecoins represent an undeniable cultural and financial force, particularly in Asia, where speculative trading and retail-driven narratives have shaped a unique memecoin culture. This newsletter explores the rise of memecoins, their role in digital culture, their perception in Hong Kong and Asia, and the broader implications for the blockchain industry.
The Rise of Presidential Memecoins: When Politics Meets Crypto
In an era where finance, technology, and internet culture collide, memecoins have emerged as a symbol of both opportunity and chaos. These digital assets—often inspired by celebrities, internet jokes, or viral trends—have become a playground for speculation. But in 2025, memecoins took a new and controversial turn: they became linked to politics.
The launch of $TRUMP and $LIBRA, two memecoins associated with U.S. President Donald Trump and Argentine President Javier Milei, signaled a shift in how crypto could be used. While their rise was meteoric, their collapse was just as dramatic, leaving behind a trail of speculation, scandal, and financial ruin for many retail investors.
The $TRUMP Coin: From MAGA Hype to Market Meltdown
In January 2025, just days before Donald Trump was set to take office for a second time, the $TRUMP memecoin launched. Supporters and speculators alike rushed in, believing it was an official campaign token (it wasn’t).
Within just 48 hours, $TRUMP’s price skyrocketed from $0.10 to $72, pushing its market cap to nearly $12 billion. Crypto Twitter was filled with stories of overnight millionaires. Some traders were posting screenshots of their wallets showing 100x returns. But as always, what goes up must come down. By the third day, the price plummeted to $17 as early investors cashed out, leaving latecomers holding the bag - A classic pump-and-dump scenario.
Despite the crash, the meme power of $TRUMP kept it alive. Even today, it still has a dedicated community hoping for a comeback.
The $LIBRA Coin: A Presidential Endorsement Gone Wrong
On February 14, 2025, Argentinian President Javier Milei posted on X, promoting $LIBRA as a way to "fund small businesses and empower the economy." Within an hour, its market cap exploded to $4.5 billion.
In Argentina, a country where traditional banking is fragile and inflation is rampant, many ordinary citizens saw $LIBRA as an opportunity to escape financial instability. However, the rally was short-lived as the token lost 92% of its value within hours, erasing billions.
Milei deleted his post, distanced himself from the project, and called for an investigation. But the damage was done. Argentina’s stock market fell 5%.
The Harm of Investing in "Shitcoins," Not MEME Coins
On one side, there are memecoins—tokens that emerge organically from internet culture, fueled by community engagement, humor, and a shared sense of identity. On the other, there are shitcoins—opportunistic, short-lived assets designed primarily to extract wealth from unsuspecting investors. Confusing the two is not just a semantic mistake but a misunderstanding of intent and impact. Calling tokens like $TRUMP or $LIBRA "memecoins" is akin to mistaking a shadow for the moon; they are not born from collective internet culture but are instead calculated financial schemes disguised as community-driven assets.
According to trading data between January 17 and February 3, 2025, the $TRUMP token exhibited wild price swings, closely resembling classic pump-and-dump schemes:
Initial Surge: The token skyrocketed from $0.10 to $72 within the first 48 hours due to speculative hype.
Sharp Decline: By January 20, the price had already dropped 50%, closing at $30.
Market Collapse: By February 3, $TRUMP was valued at just $17, marking a 76% decline from its peak.1
The volatility was not organic—whales and insiders dominated trading, strategically buying low, selling high, and extracting millions before the crash.
A small group of early investors controlled the majority of the trading volume, ensuring retail investors bore the brunt of the losses:
21 major traders collectively earned over $214 million in profits within the first 48 hours.
One trading cluster alone extracted $170 million, capitalizing on momentum trading and algorithmic sell-offs.
More than 50 large investors each secured over $10 million, while thousands of retail traders lost money.¹
This unequal profit distribution highlights how $TRUMP was never a fair investment—it was rigged from the start to benefit those with early access and insider knowledge.
The Hidden Cost: $100 Million in Trading Fees Extracted from Retail Investors
Beyond price manipulation, the $TRUMP token’s structure ensured continuous profit extraction from unsuspecting traders.
The token generated $100 million in trading fees within two weeks.
These fees disproportionately benefited the creators, particularly CIC Digital (an affiliate of the Trump Organization) and Fight Fight Fight LLC.
Meteora Exchange, the primary platform facilitating $TRUMP trades, allocated a share of transaction fees to the token’s creators, further concentrating wealth among insiders
Thus, even when retail investors attempted to exit, they were losing money through exorbitant trading fees imposed by the very entities controlling the token.
The Broader Impact of Shitcoins on the Crypto Industry
The damage from shitcoins like $TRUMP and $LIBRA extends beyond individual investors:
Regulatory Crackdowns – High-profile scams provide governments with justification to impose stricter crypto regulations, potentially stifling legitimate blockchain innovation.
Loss of Public Trust – Retail investors who suffer massive losses are less likely to re-engage with crypto markets, reducing overall liquidity and adoption.
Market Volatility – Studies show that memecoins exhibit 50 times the volatility of Bitcoin, making them high-risk assets (Chainalysis 2022 Crypto Crime Report)
Meme Driven Investing Beyond Crypto
The phenomenon of meme-driven speculation extends far beyond cryptocurrencies—stock markets worldwide are increasingly influenced by viral narratives and cultural sentiments. Nowhere is this more evident than in China’s stock market, where retail investors have propelled a struggling company, Wisesoft, to soaring heights simply because its Chinese name sounds like ‘Trump wins big’.
Despite posting a loss of $3.7 million in the first nine months of 2024, Wisesoft’s stock price doubled on the Shenzhen Stock Exchange over the past month, fueled by irrational enthusiasm from retail traders who associate Trump’s potential political comeback with financial success. This bizarre trend mirrors past instances where Chinese investors chased stocks based on names rather than fundamentals, such as companies with "dragon" in their name during the Year of the Dragon or those linked to President Xi Jinping’s speeches.
This meme stock phenomenon follows a pattern seen in the GameStop ($GME) short squeeze of 2021, where social media-fueled retail traders defied institutional investors by massively buying a struggling stock.
Memecoin Culture in Hong Kong and Multifaceted Stances Across Asia
Hong Kong, a city known for its tech-forward approach and vibrant digital culture, ranks sixth globally in memecoin interest. The recent MemeX Festival, held on February 18 during Consensus HK 2025, exemplifies this culture (MemeCore Announces “MemeX Festival”). Organized by MemeCore, in collaboration with 852Web3, Pudgy Penguins, Hashkey Exchange, and TON, the festival attracted over 2,000 attendees, focusing on bridging Web2 and Web3 communities through meme culture and blockchain innovation. The event featured a 90s Hong Kong theme, nostalgic carnival games, and flash mob performances, fostering a lively atmosphere for interaction and networking.
A notable local project, Memecoin (MEME), created by the team behind 9GAG, a Hong Kong-based humor website with a global audience of 200 million, underscores the city's role. Launched with no utility, roadmap, or financial return expectations, MEME is designed purely for entertainment, aligning with the playful nature of memecoins. It is traded on platforms like Transak, where users can buy it using HKD, reflecting accessibility for local investors.
The perception of memecoins across Asia is multifaceted, with varying levels of acceptance and caution. Japan recently listed PEPE on BITPoint, marking it as the first memecoin on a major Japanese exchange, signaling growing acceptance in the region. In contrast, mainland China's memecoin scene operates actively but discreetly, with spontaneous trading groups on WeChat and Xiaohongshu (often overshadowed by lifestyle content) facilitating “meme trading” discussions.
In Defense of Memecoins: More Than Just Speculation
The popularity of memecoins in Hong Kong and Asia underscores a broader truth—memecoins are not just speculative assets, but cultural movements. Narratives sometimes ignores meme’s cultural significance, real-world utility, and community-driven innovation. High-quality memes are powerful, self-replicating ideas that shape social coordination, community identity, and even financial systems.
Memes as Digital Glue of the Internet & Decentralized Attention Machines
As MannayWorld points out on his latest article on X, memes are the most efficient carriers of information in the digital age. They are compressed, instantly recognizable ideas that spread virally, requiring no explanation. A meme can convey an entire worldview in a single image, phrase, or token.
Pet3rpan_ expands on this idea, arguing that memes are the ultimate decentralized attention mechanism. In a world where traditional advertising and institutional influence dominate markets, memes provide a bottom-up, permissionless way to command attention.
Bitcoin ($BTC) started as a meme—“Limited internet money.”
Ethereum ($ETH) was once dismissed as a joke—“world computer” was a meme before it became reality.
Dogecoin ($DOGE) proved that humor could drive mass adoption, showing that people engage with assets they feel connected to, not just those that are technically superior.
The best meme coins are decentralized brands. They capture attention, loyalty, and participation without needing marketing teams or centralized entities. These aren’t pump-and-dump schemes—they are new economic models where community participation drives value creation and tap into deep-seated human desires:
Belonging: Holding a meme coin signals membership in a digital community.
Identity: Just like wearing a brand or supporting a sports team, owning a meme coin is a form of self-expression.
Participation: Meme coins turn holders into contributors, whether through memes, governance, or social engagement.
Memecoins as Digital Culture & Community-Building Tools
Meme coins aren’t just about price speculation—they are symbols of internet culture, shared identity, and community engagement. Unlike traditional financial assets, meme coins serve as digital-native brands that grow through community participation, humor, and collective creativity.
Case Study: Dogecoin ($DOGE) – The First Internet Currency
Origins: Created in 2013 as a joke, Dogecoin quickly became the internet’s tipping currency on Reddit and Twitter.
Real Use Cases:
Used for microtransactions and tipping content creators online.
Sponsored charitable causes, including funding the Jamaican bobsled team in the 2014 Olympics.
Accepted as payment by major companies, including Tesla and AMC Theatres.
Cultural Impact: Dogecoin’s lighthearted nature brought millions of people into crypto who might have never engaged with Bitcoin or Ethereum.
Case Study: Shiba Inu ($SHIB) – A Decentralized Meme Ecosystem
Origins: Started as a meme, but evolved into a full-fledged ecosystem with DeFi applications.
Real Use Cases:
Launched ShibaSwap, a decentralized exchange for trading and staking.
Introduced SHIB: The Metaverse, a decentralized virtual world.
Built Shibarium, a Layer-2 blockchain designed to reduce gas fees and improve scalability for SHIB holders.
Cultural Impact: SHIB’s massive following led to the creation of one of the most active crypto communities, proving that meme coins can drive real blockchain adoption.
Meme Coins as Social Coordination & Crowdfunding Mechanisms
Meme coins have shown they can be powerful tools for crowdfunding, activism, and social movements. Unlike traditional fundraising, which relies on centralized platforms, meme coins allow decentralized, global participation.
Case Study: ConstitutionDAO ($PEOPLE) – Crowdfunding Through Memes
Origins: ConstitutionDAO was formed in 2021 with the goal of purchasing a copy of the U.S. Constitution at auction.
Real Use Cases:
Raised $47 million in ETH in under a week.
Demonstrated the power of decentralized crowdfunding—anyone could contribute and receive governance tokens.
Cultural Impact: Though the DAO lost the auction, it inspired future decentralized fundraising efforts and proved that meme-driven communities could mobilize real capital.
Case Study: Bonk ($BONK) – A Meme Coin for Decentralized Distribution
Origins: Launched as Solana’s first major meme coin and airdropped to the community.
Real Use Cases:
Distributed free tokens to Solana users, creating an equal and decentralized token launch.
Supported small Solana projects, helping to revitalize the ecosystem after the FTX collapse.
Cultural Impact: BONK’s fair launch challenged the traditional VC-dominated tokenomics model, proving that meme coins can distribute value more democratically.
Meme Coins as Experimental Governance & Identity Systems
Meme coins are also being used to experiment with decentralized governance and digital identity. Unlike traditional DAOs (Decentralized Autonomous Organizations) that rely on serious financial incentives, meme-driven governance models encourage participation through humor and shared cultural values.
Case Study: Nouns DAO – Meme-Driven Governance in Action
Origins: Nouns DAO mints one Noun NFT per day, and all proceeds fund community-driven projects.
Real Use Cases:
Funded public goods projects, including open-source software and art initiatives.
Created a decentralized brand, with Nouns imagery appearing in real-world events and media.
Cultural Impact: Nouns DAO proved that decentralized governance doesn’t have to be purely financial—it can be cultural, fun, and still highly effective.
Case Study: Milady ($LADYS) – Meme Coins as Digital Identity
Origins: Born from the Milady NFT movement, LADYS became a social identity token.
Real Use Cases:
Used as a community currency within the Milady ecosystem.
Integrated into NFT-based social clubs and online communities.
Cultural Impact: Represents how meme coins can function as social status symbols, similar to luxury brands in the real world.
Conclusion
Dismissing meme coins as valueless speculation misses the bigger picture. Yes, bad actors exist, but the same is true in traditional finance and equity investments. Meme tokens and meme equity stocks share a fundamental trait: they thrive on hype rather than intrinsic value. Crypto and blockchain technology themselves are not the problem—they offer real innovation in finance, decentralization, and transparency. The real risk lies in blind speculation, where investors chase trends without due diligence. As with any financial innovation, disciplined investors must separate speculation from true value creation.
While we do not invest in memecoins, we recognize their role in driving digital culture, financial experimentation, and community-driven adoption of blockchain technology. The rise of memecoins reflects a larger movement toward decentralized finance, digital identity, and internet-native economies. However, as with all emerging financial innovations, disciplined investors must separate speculation from sustainable value creation. At Blockchain Coinvestors, we remain committed to backing the foundational technologies that will define the future of digital assets, ensuring that blockchain’s long-term potential is realized beyond the hype cycles of any one trend.
At Blockchain Coinvestors, we remain focused on our long-term investment thesis:
We invest in the infrastructure, platforms, and applications driving the future of blockchain.
We provide early-stage exposure to the most promising blockchain businesses.
We do not speculate on memecoins, but we carefully track their impact on the market.
At Blockchain Coinvestors, we established our core investment thesis a decade ago, and we are excited in seeing a host of news confirming our investment thesis and strategy in Asia.
As a closing note, please contact any of our team at ir@BlockchainCoinvestors.com to learn more about our investment strategies.
Thank you for reading.
Joy Cai
Hong Kong
1. Krause, David, The Dangers of Cryptocurrency Hype and Deregulation: Why Oversight Matters in the Digital Asset Economy (February 13, 2025). Available at SSRN: https://ssrn.com/abstract=5136389 or http://dx.doi.org/10.2139/ssrn.5136389
About Blockchain Coinvestors
Blockchain Coinvestors invests in blockchain businesses. Our vision is that digital monies, commodities, and assets are inevitable and all of the world’s financial infrastructure must be upgraded. Our mission is to provide broad coverage of early stage blockchain investments and access to emerging blockchain unicorns. Blockchain Coinvestors’ investment strategies are now in their 12th year and to date we have invested in a combined portfolio of 1,250 blockchain companies and projects including more than 110 blockchain unicorns. Visit us at www.BlockchainCoinvestors.com to learn more.
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