How do meme packs turn into billions of dollars? The true game rules of meme coins

The Shiba Inu born in 2013 suddenly jumped into the top ten by market cap in the cryptocurrency world in May 2021. Countless people watched this “joke coin” rise from a few cents to $0.74, with a market cap surpassing $85 billion, all asking the same question: why?

The answer isn’t that complicated. Just look at those shared memes, browse through the millions of “To the Moon” comments below, and you’ll understand—this isn’t a victory of code, but a victory of culture.

The Counterattack Starting from Mockery

Programmers Billy Markus and Jackson Palmer initially created this coin to mock the speculative frenzy of cryptocurrencies. They casually made it. Unlimited issuance, Shiba Inu avatar, no white paper—at the time, it was seen as an “ironic” statement against the entire industry.

But magic happened at this moment. Reddit communities began rewarding interesting posts with it, players spontaneously organized charity events, and even crowdfunded sponsorships for NASCAR drivers and the Jamaican sled team. No team operation, no marketing budget—this coin survived purely on community enthusiasm, enduring a decade of bear markets. What truly kept it alive until 2021 wasn’t a tweet from some big influencer, but the silent holders who share memes and pass them along.

The Boom of Cultural Symbols

In 2020, Shiba Inu (SHIB) directly copied this logic—branding itself as the “Dogecoin killer,” fostering a sense of “SHIB Army,” and using the same Shiba Inu image. The result was a 120,000-fold increase, once reaching a market cap of $36 billion.

Even more outrageous was PEPE in 2023. Based on an internet meme, with no official backing, solely spread by netizens, its market cap soared to $7 billion in two weeks. It became clear: Meme coins’ prices don’t come from code; they depend on how many people recognize, use, and propagate this symbol.

Just like Disney makes money with Mickey Mouse, these projects turn memes into tradable cultural assets. The more popular the symbol, the more discussion it incites, the more valuable it becomes.

The Misguided Anxiety About “Market Pumping”

Many newcomers start urging project teams in communities to “pump” the coin, but this is completely the wrong approach.

Meme coins are different from stocks or Bitcoin. Stocks are backed by company performance; Bitcoin is supported by blockchain technology. Meme coins’ “fundamentals” are community consensus and cultural dissemination—this is all they have. The project team is mostly just a launcher; the real market makers are each of the holders.

The PEPE example best illustrates this. This coin has no founders, no team—only relies on netizens creating memes and spreading them on Twitter and Telegram. When you share a PEPE image, or discuss how funny the frog is with friends, you’re actually increasing its value—every share reinforces the significance of this symbol.

Conversely, hundreds of new Meme coins are born daily on Pump.fun, but 99% don’t survive a week because they only have code, no culture, and no one willing to actively spread them. If the community just waits for pumps, it’s like guarding a fish pond that can’t reproduce itself—eventually, the resources run out.

Three Bottom Lines for Playing This Game

Attention is the most scarce resource of this era. Meme coins are essentially “attention securitization”—turning discussion, sharing, and关注 into tradable assets. Platform algorithms favor interesting content; a funny meme spreads more easily than a dull white paper. A phrase like “To the Moon” sparks more FOMO than technical specs.

The active Meme coin ecosystems on Solana and Base are because these chains offer fast transaction speeds and low fees, making them more suitable for retail high-frequency trading. Technology is just a tool; the community is the engine.

If you decide to join, here are some points more important than just watching K-line charts:

First, choose symbols you truly identify with. Don’t buy Meme coins you don’t understand. If you find a meme boring, don’t expect others to share it. Most PEPE holders are Gen Zers who grew up with this frog—they spread it because they genuinely like it, not just for profit. This sincerity is contagious.

Second, be a propagator, not just a speculator. Instead of asking every day “When will it pump?”, think about how to let more people see this Meme. Create a creative meme, write a joke, comment on relevant topics—every creative act you participate in adds value to your holdings.

Third, play with an entertainment mindset. Meme coins are basically “cultural lottery tickets.” While they have more cultural value than pure gambling, they are still highly speculative. Only invest what you can afford to lose. Treat it as buying a ticket to an amusement park—have fun first, making money is the bonus.

The IPO of Internet Culture

When memes turn into cryptocurrencies, we’re essentially doing an IPO for internet culture. Every surge of a Meme coin is a grassroots culture breaking into traditional finance.

But the key is: without dissemination, there is no value. The project team’s plans or KOL endorsements are less powerful than the meme you’re about to post on your social feed. Instead of waiting for a pump, start now—use your drawing tools to create the next viral meme, symbol, or cultural signature of this era.

In this attention economy, every participant can be their own market maker.