There is now a whole group of meme tokens within the crypto sector.
The crypto sector is still a relatively new industry, with Bitcoin, the world’s largest token, having only been launched in 2009. Since then, the sector has come a long way. Bitcoin has found its way into the portfolios of a diverse range of investors, from retail investors to hedge funds. Some refer to Bitcoin and its 21 million tokens as “digital gold.”
But the crypto sector has also expanded significantly, and there are now thousands of different cryptocurrencies to invest in. The rise of tokens like Dogecoin and Shiba Inu has also given birth to a subsector, if you will, called meme coins. These are cryptocurrencies that have no real use case or inherent advantage over more prominent cryptocurrencies like Bitcoin and Ethereum.
However, they’ve tapped into the power of virality to form strong communities on social media, which enables them to appreciate, and sometimes generate strong returns, despite their tremendous volatility. Investors should be aware that meme coins are incredibly risky to invest in, and you should invest only what you can afford to lose.
Here’s one meme coin I wouldn’t touch with a 10-foot pole.
In the world of crypto, never say never. Investors shouldn’t be overly surprised to hear that there is actually a meme token called Fartcoin (FART 0.12%). The token launched on Solana’s network in late 2024 and has a market cap of over $305 million, which would actually put it into the small-cap stock range. At one point, Fartcoin’s market cap even surpassed $1 billion.
However, Fartcoin intentionally has no real-world utility, despite its large following and active community. Running on Solana has its benefits because Solana itself is one of the best technical blockchain networks, enabling Fartcoin owners to create items like non-fungible tokens (NFTs). One possibly unique feature is that every Fartcoin transaction supposedly produces a digital fart sound (but only in certain digital wallets, not the cryptocurrency itself).
At the end of the day, investors should focus on investing in cryptocurrencies that operate on robust technical networks and have real-world utility, and even those are likely to be somewhat risky. I much prefer Solana over Fartcoin, which is why I wouldn’t touch the token with a 10-foot pole, at least from an investing perspective.
Fartcoin is going to be much more volatile and unpredictable than the crypto sector as a whole, and there’s a good chance the token could end up with no value if another crypto bear market occurs, which tends to happen every few years.
Now, if investors find the token and its community amusing, there’s nothing wrong with investing a small amount of money to enjoy the ride, as long as they understand that it’s not a good strategy from an investment perspective and that they could lose that money.
Read more on Inside The Star-Studded World
