What Is a Meme Coin, and Should You Invest in Them?
Key Points
There are over 5,000 meme coins, which are cryptocurrencies with humorous elements.
Outside of a few top performers, most of them have done little.
- 10 stocks we like better than Dogecoin ›
Meme coins are cryptocurrencies that don't take themselves too seriously. Many of them are based on internet memes (hence the name) or have other humorous elements.
Even though the biggest meme coins started out as jokes, they can create real monetary value. Combined, meme coins are worth $61 billion (as of Oct. 31). While some people have struck it rich buying meme coins, you could be in for disappointment if you try to do the same.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Getty Images.
Meme coins are closer to gambling than investing
The appeal of meme coins is the possibility of buying one that explodes in value. But very few meme coins have any success at all, and the ones that do are rarely successful for long. For an idea of just how slim the odds are, CoinGecko currently lists over 5,000 meme coins.
Just one of them, Dogecoin (CRYPTO: DOGE), accounts for nearly half of the meme coin market. It's currently worth $28 billion. Other big names include Shiba Inu, Pepe, and Official Trump. That's a handful of cryptocurrencies out of thousands, and their success came from temporary hype, not any underlying value.
It usually doesn't take long for meme coins to come crashing back down to Earth, either. After reaching an all-time high in May 2021, Dogecoin lost over 50% of its value by the end of that month.
There are quality cryptocurrency investments out there, but meme coins don't fit that description. It's practically impossible to accurately predict which ones will increase in value, so making money from them is a matter of luck.
Should you invest $1,000 in Dogecoin right now?
Before you buy stock in Dogecoin, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Dogecoin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $603,392!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,241,236!*
Now, it’s worth noting Stock Advisor’s total average return is 1,072% — a market-crushing outperformance compared to 194% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of October 27, 2025
Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
