memecoin

A memecoin is a type of cryptocurrency whose value derives largely from internet culture, branding, hype, and community sentiment rather than from any underlying product, asset, or utility. Memecoins are highly volatile and are often launched with a large share of the supply held by their creators, who can profit when public buying drives up the price. In February 2025, the SEC’s staff stated that memecoins are more akin to collectibles than securities and therefore fall outside its enforcement jurisdiction, a position issued weeks after Donald Trump launched the $TRUMP memecoin and stood to benefit from it.