Memecoins are like the biggest thing crypto trading has to offer right now. The sheer craziness and profitability of this market have onboarded lots of players. For some, memecoins are the next big thing, and for others, they’re nothing more than a digital lottery.
But are they really? Can memecoins really be compared to crypto gambling or just gambling in general? Moving on, we’ll look at what drives the memecoin market, how they operate and why they’re such a dominant trend in the market.
The roadmap for memecoins
Meme coins were created typically as tokens for social media engagement and humorous returns. However, the utility of these tokens quickly advanced when a whole lot of crypto users found the trend very interesting. Interesting enough that everyone wanted to own memecoins.
Now traders and crypto investors were particularly drawn to meme coins for their potential for quick returns. In essence, the popularity of memecoins has very little to do with utility and more to do with their hype and viral culture.
Here, everyone is chasing gains with no real utility and the numbers even suggest it. Reports suggest that in 2024 alone, between 40,000 and 50,000 meme coins were launched daily. These insane numbers are the reason meme coins are so profitable, but also why the space is now saturated.
In addition, here are some of the most popular and profitable meme tokens launched so far;
- Pepe coin (PEPE)
- Dogecoin (DOGE)
- Shiba Inu (SHIB)
- Dogwifhat (WIF)
Fun Fact: A single tweet from Elon Musk once boosted Dogecoin’s price by over 50% in a few hours, proving hype can move markets.
Can we compare memecoins to gambling: the similarities
Alex Mashinsky, Crypto Commentator – “Memecoins are not investments, they’re cultural bets. You’re wagering on virality, not on value.”
With all objectivity, it is easy to see why many people liken meme coin trading to crypto gambling. They both involve a good amount of risk and are both driven by thrill and chance. Apparently, meme coins ride on a mindset that is closer to gambling than it is to trading & investing. Let’s get a quick rundown of the similarities between these two.
High risk, high reward
Just like spinning slot machines, buying and trading memecoins can either lead to huge losses or huge gains. This level of volatility makes every memecoin purchase feel like a wager. This reason is also why many investors zero in on meme tokens, the chance of turning meagre amounts into huge returns.
Fun Fact: Some memecoins have experienced price surges of 1000% in a single day, rivaling the excitement of jackpot wins.
Emotional decision making
David Lin, Finance Analyst – “The memecoin market is built on speculation and community emotion. Without fundamentals, it’s closer to gambling than finance.”
The hype that surrounds many meme tokens creates the typical fear of missing out (FOMO). This condition ensures that most people buying into memecoin projects do so because they do not want to miss out on the potential profits. Eventually, the decision-making for meme trading is too similar to the adrenaline rush of gambling.
Fairly unpredictable outcomes
Unlike some other crypto tokens, memecoins do not have much intrinsic value. As such, predicting how each token will turn out in the long run is especially difficult. Similarly, gambling outcomes are extremely difficult to predict as there’s no defined basis for that.
The convergence with traditional gambling
Consider how traditional gambling operates today taking casino gambling as a case. Many online casinos offer instant entertainment, tempting rewards, traits memecoins share.
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As casino expert Gerda Grinova notes, the desire for instant results — whether in games or investments — reflects the modern culture of quick rewards, where success largely depends on the balance between speed, risk, and trust in the platform.
Memecoins’ impact on the whole crypto scene
The extreme volatility of memecoins does cast some doubt over the credibility of cryptocurrency in general. Moreso because several memecoin projects are being used to perpetuate scams, such as rugpulls and pump and dump schemes. This way, only developers and top investors get to make any profit at all.
Overall, crypto’s growth potential may eventually suffer if more people associate the industry with gambling schemes rather than asset trading.
Closing
Eventually, in a nuanced way, meme coin trading can be compared to gambling. While they share the same thrill, unpredictability, memecoins are built in a technological ecosystem with way more innovation potential. Nevertheless, without due diligence every time, investing in meme tokens becomes not so different from placing wagers.
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