What is a meme coin and how does it work?

Memecoin is one such cryptocurrency that is based on fun or internet trends, but slowly their craze is increasing. The first famous memecoin was Dogecoin (DOGE), which was launched in 2013 and was based on a Shiba Inu dog meme. After this Shiba Inu (SHIB), Floki Inu (FLOKI) and many newer memecoins came into the market.

Their main purpose is fun and community engagement, but some memecoins have also achieved serious adoption. Personalities like Elon Musk also promoted them, due to which they became a part of the mainstream crypto market. Nowadays memecoins are famous as high-risk, high-reward investments.