Three days before becoming U.S. president, Donald Trump did something unusual. He created a meme coin called $Trump. People could buy it, hoping its price would rise. First, Trump jumped from 7 to 75 in one day. But two days later, it fell to $40. Around the same time, Melania Trump (his wife) and a pastor at his ceremony also made their own meme coins.

What are meme coins?

Meme coins are funny internet money based on jokes or viral trends. The most famous is Dogecoin, which started as a joke with a dog meme. Unlike Dogecoin, most new meme coins are easy to create. They don’t need their own technology – they use systems like Bitcoin’s blockchain (a digital ledger for tracking money).

Why do people buy meme coins?

People buy them hoping to get rich fast. But experts say most lose money. These coins can crash quickly. Some creators trick buyers: they pretend the coin is valuable, sell all their coins, and the price drops. This is called a “pump and dump” or “rug pull.”

Why are meme coins popular now?

In 2024, apps like pump.fun let anyone create meme coins easily. Also, Trump supports crypto, which makes people excited. Another reason? Young men want to try quick ways to earn money.

Examples of meme coins:

- Dog coins (like Dogecoin).

- A frog meme coin (Pepe) linked to online groups.

- $Hawk, made by a girl from a viral video. It lost 95% of its value in days.

Are meme coins like Bitcoin?

No. Bitcoin was meant to replace regular money. Meme coins are mostly for fun or gambling. A Bitcoin developer said, “They’re like a casino game.”

A crazy story:

An artist named Andy Ayrey made an AI bot that loved meme coins. A stranger created a rude meme coin called Goatse and sent it to the bot. The bot promoted it, and its value jumped to $1.2 billion! Another Coin hit $2.3 billion. But when Ayrey tried to sell them, their value dropped fast. Few people were buying, so prices crashed.

Who really makes money?

Big companies and traders. They use tricks not allowed in normal markets. “Ordinary people lose money,” says a finance expert.

What about Trump’s coin?

People buy $Trump to show support, like a fan club. But critics say Trump’s company earns fees from it. Experts think he made it to prove he can do whatever he wants.