SuperEx Education Series:The Origin and Rise of Memecoins

Phase 1: The Birth of Dogecoin (2013–2017)

Dogecoin began as a joke and accidentally became one of the best-known coins outside Bitcoin. It showed that crypto can be a cultural symbol, not just a financial instrument. In this period, memecoins were viewed as “for fun,” but the seeds for a later boom were planted.

Phase 2: DeFi + Meme (2018–2020)

As Ethereum matured, new tokens began blending memes with DeFi mechanics. Shiba Inu (SHIB) is a hallmark example: meme appeal with a broader ecosystem. Memecoins shifted from “pure jokes” to experiments with financial features.

Phase 3: The Big Bang (2021–present)

A bull‑market mood pushed memecoins into mass culture:

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  SHIB surged by tens of thousands of percent, minting rags‑to‑riches legends.
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  Elon Musk’s tweets repeatedly catapulted DOGE into the top‑10 by market cap.
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  New names like PEPE and BONK dominated social feeds.

By this point, memecoins weren’t niche — they’d become a major on‑ramp for crypto liquidity and users.

1) Community Consensus: The Soul of a Meme

With memecoins, no community = no value. Technical barriers are low — many tokens can be launched in hours or minutes — so what determines breakout potential is whether a community treats it as a shared belief and spreads it.

Winning community traits often include:

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  Hyperactive social channels (X/Twitter, Reddit, Telegram).
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  Endless user‑generated content (memes, shorts, edits) that virally propagate.
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  Grassroots storytelling: retail over institutions, “underdog wins.”
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  Ride‑or‑die mentality: even after a 50% drawdown, holders chant HODL.

Value lies in the community, and the community’s value lies in resonance.

2) Cultural Symbols: From Shiba to Frog

Memes are cultural expression. Shiba dogs, frogs, monkeys, cats — these icons are core to internet culture. Coupled with tokens, they gain both financial and social meaning.

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  Shiba (DOGE/SHIB): early crypto humor and irreverence.
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  Pepe the Frog (PEPE): a classic internet meme turned financial avatar.
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  Countless other mascots drive new viral waves.

People might not parse a consensus algorithm, but everyone “gets” a cute dog or an iconic frog. Cultural symbols become the strongest viral engine.

3) Liquidity & Speculation: A Game of Surges and Dumps

Most memes launch simply:

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  Team issues a token,
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  Seeds a DEX liquidity pool,
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  Lets the community run with it.

The result: extreme speculation. Prices can multiply in hours — and crater just as fast. That volatility is the draw. A few hundred dollars can become a fortune — or go to zero overnight.

4) Narrative & Sentiment: The Weather Vane

Unlike upgrades or protocol shifts that add fundamental value, memecoins move on stories and mood:

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  Celebrity effect: one Musk “to the moon” post can rip DOGE higher.
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  Topical hooks: timely jokes or stunts spark FOMO.
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  Rival narratives: “SHIB flips DOGE” stokes attention and engagement.

When risk appetite is high, memes typically lead the pump; when the market sours, they’re first to slump.

In short:

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  Community is the engine,
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  Culture is the fuel,
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  Speculation is the flame,
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  Narrative and sentiment set the wind.

1) Extreme Volatility

PEPE’s multi‑thousand‑percent launch moves sit alongside countless copycats that go to zero. Drivers include:

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  Retail‑heavy flows, unstable capital,
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  Bursts of concentrated volume,
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  No fundamentals — pure order flow and mood.

2) High Risk, High Reward

No P/E ratios or cash flows here. With no intrinsic anchor, moves exceed norms. That uncertainty is the appeal — and the trap.

3) Supercharged Virality

Memecoins are native to social platforms:

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  X/Twitter hashtags (#DOGE, #PEPE) trend often,
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  TikTok shorts make them pop fodder,
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  Reddit fuels meme‑on‑meme engagement.

Paid ads aren’t necessary — users themselves are the growth engine.

4) Low Barrier to Entry

Memes often have tiny unit prices:

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  Psychology: “I can’t afford 1 BTC, but I can buy millions of SHIB.”
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  Accessibility: $10 can create a sense of participation.

5) Entertainment Value

Beyond investing, memecoins are social entertainment:

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  “To the moon” memes,
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  Bragging about “diamond hands,”
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  Treating PnL swings like inside jokes.