Created for Fun, Now Worth '140 Trillion'... "Can't Be Ignored Anymore" Cheers

The Two Faces of Meme Coins

(Part 1) Started for Fun, Now a Major Cryptocurrency

14 Meme Coins with Market Cap Over 1 Trillion

"No Value" vs "Growing Presence"

In the cryptocurrency market, it has been identified that there are 14 meme coins (viral cryptocurrencies) with a market capitalization exceeding 1 trillion won. With former U.S. President Donald Trump officially issuing a meme coin, the presence of meme coins, once considered worthless speculative tools, has grown significantly.

On the 22nd, an analysis by the Korea Economic Daily of meme coins listed worldwide revealed that there are 14 meme coins with a market cap exceeding 1 trillion won. Combined, their market cap approaches 140 trillion won. Dogecoin had the largest market cap at 78.5 trillion won, followed by Shiba Inu at 17.5 trillion won, and Official Trump, President Trump's meme coin, at 12 trillion won. Pepe (9.6 trillion won), Bonk (3.6 trillion won), and Fartcoin (2.5 trillion won) followed.

Meme coins are cryptocurrencies created based on popular internet content or characters. They lack intrinsic value and are vulnerable to volatility. Official Trump surged to $75 just two days after its launch but is now trading at around $42, nearly half its peak.

Dogecoin's Market Cap at 78 Trillion, Surpassing KB and Naver... Meme Coin ETFs Also 'Starting'

No Intrinsic Value but Speculative Funds Pour In

With former U.S. President Donald Trump and his wife officially launching meme coins (viral cryptocurrencies), their influence is rapidly growing. Despite being labeled as 'shit coins,' there are quite a few meme coins with market caps ranging from several trillion to tens of trillions of won. The influx of massive funds into assets with no intrinsic value is intensifying the paradoxical phenomenon driven by crowd psychology and speculation.

○ Surpassing Major Domestic Listed Companies' Market Cap

According to CoinMarketCap on the 22nd, the meme coin with the largest market cap in the cryptocurrency market is Dogecoin. It has grown to the 7th largest among all cryptocurrencies. As of 3 PM that day, Dogecoin's market cap was $54.62 billion, approximately 78.5 trillion won. This surpasses the market cap of Samsung Biologics (about 72 trillion won). It also significantly exceeds the market caps of Hyundai Motor (43.6 trillion won), KB Financial Group (35.2 trillion won), and Naver (32.3 trillion won). Shiba Inu, the second-largest meme coin with a market cap of 17.5 trillion won, surpasses the market cap of the Industrial Bank of Korea (12 trillion won).

Meme coins demonstrate a unique asset status combining internet culture and cryptocurrency technology. Initially inspired by light humor, jokes, images, or catchphrases, the first meme coin, Dogecoin, was created in 2013 by IBM alumni Billy Markus and Jackson Palmer to satirize the Bitcoin craze. Fartcoin, with a market cap of $1.75 billion (about 2.5 trillion won), was created when the AI agent Terminal of Truth proposed issuing a cryptocurrency themed around farts on an AI dialogue platform. It was born from the idea of an AI agent, an autonomous software system utilizing AI technology to perform specific tasks or achieve goals, and is also classified as an AI-themed meme coin. It's similar to AI-themed stocks in the stock market.

○ High Risk as an Asset

The continued inflow of funds despite the lack of real value is due to strong support from specific communities. In the case of Official Trump, it is analyzed that President Trump's fandom played a significant role. Joo Ki-young, CEO of CryptoQuant, stated on X (formerly Twitter), "Social influence will now be measured by market cap rather than follower count," adding, "Unless someone stronger than the (U.S.) president intervenes, it's an unavoidable trend." He also mentioned, "Victims will emerge from the chaos, and related laws will be formed," adding, "This is the saddest part."

The speculative sentiment aiming for short-term price gains is a major factor supporting meme coin prices. For example, Bitcoin rose 44.3% in the month following the U.S. presidential election. During the same period, Pepe, a meme coin inspired by the frog character from the comic 'Boys Club,' jumped over 100%.

While meme coins carry high risks as assets, the movement in advanced financial markets to leverage the growth potential and public interest in the cryptocurrency market is becoming more active. In the U.S., the possibility of launching meme coin exchange-traded funds (ETFs) is increasing. On the 21st, U.S. asset management firms Osprey Funds and Rex Shares submitted applications to the U.S. Securities and Exchange Commission (SEC) for meme coin ETFs, including Dogecoin, Official Trump, and Bonk. The application states, "The fund will invest at least 80% of its net assets (including borrowings for investment purposes) in benchmark assets and other assets providing exposure to benchmark assets under normal market conditions." This means the fund plans to invest over 80% in meme coin-related assets. Kim Min-seung, head of Korbit Research Center, said, "We need to wait and see if it will actually be approved," but added, "With the emergence of meme coin ETFs following Bitcoin spot ETFs, the integration of cryptocurrency and traditional financial markets is happening rapidly."

Park Jae-won/Cho Mi-hyun, Korea Economic Daily wonderful@hankyung.com