Meme Coins

What is a Meme?

A meme is defined by Webster’s New World College Dictionary as “a concept, belief, or practice conceived as a unit of cultural information that may be passed on from person to person, subject to influences in a way analogous to natural selection.” Memes have always existed but have grown rapidly in popularity due to the internet and social media. Sites such as Twitter and TikTok are flooded with memes, with common ones circulating like a virus and evolving through small changes. They are possibly the most effective way to quickly and efficiently distribute an idea or joke to large groups of people. As Elon Musk tweeted, “Who controls the memes controls the universe.”

Memes in Traditional Markets

While crypto tokens and NFTs may amplify memes, they still exist in traditional markets. For example, stocks such as Gamestop, AMC Theatres, and Bed Bath and Beyond have been dubbed “meme stocks”. These stocks saw shocking rallies in 2020 when retail investors coordinated on message boards such as Wall Street Bets and bought the stocks in an effort to squeeze short positions of large hedge funds. Meme stocks have risen to such prevalence that even the CFA Institute has published about them, stating that they are “traded mostly by retail investors in search of ...