‘It’s a pure form of gambling’: memecoins boom after Trump election

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‘It’s a pure form of gambling’: memecoins boom after Trump election
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‘Hawk tuah girl’ Haliey Welch’s coin fails amid new wave of hype around crypto-related assets

The Hawk memecoin was worth $490m hours after it launched on 4 December but now has a market capitalisation – the value of all Hawk coins in circulation – of $17m.

The furore has taken place amid a boom in memecoins, which were valued at about $20bn in their entirety at the beginning of the year but are now worth $118bn, according to CoinMarketCap, which monitors crypto prices. And they are flooding the market place in their thousands. At one point in November, the memecoin platform pump.funExperts say memecoins, the latest darling in a crypto field whose true economic worth is endlessly queried, have no fundamental value.

Sam Baker, a UK-based memecoin trader, says a lot of the coins’ launches are based on internet trends “you have never even heard of” and rely heavily on influencers to push them on a range of channels from Discord to X and Telegram. “It’s monetising people’s attention from social media,” he says. “It’s a crossover from web 2.0, which is social media, to web 3.0, which is decentralised finance and crypto. Although they are bonkers, memecoins represent the modern monetisation of the attention economy.”

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