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Do meme coins have utility?

Words can't explain the amount of people who have been hitting me up lately asking about Doge and if it's a good time to invest. What am I supposed to say? Spend your life savings on a meme?

Well, maybe memes are a better Store of Value than gold after all...

I am a huge proponent of investing in coins you regularly use so that you aren't tempted to impulsively smash the sell-the-whole-stack button. I wanted to write this article to dive further into this concept and give my thoughts on what characteristics bring utility to meme coins.

After all, utility IS the most important aspect of cryptocurrencies... right?


Utility: The state of being useful, profitable, or beneficial.

Most common uses of crypto:

  1. Payments

  2. Earning interest from staking

  3. Earning interest from exchange fees

  4. Voting in governance


Let's be honest - there are basically no meme coins actually used for payments besides Doge. Most notably, Mark Cuban has started accepting payments in Dogecoin for Mavs tickets and merch.


The nice thing about this current 2021 generation of meme coins is that most are built on Ethereum or BSC, allowing them to be used in Defi apps. This gives them an advantage over coins like Doge since holders are able to earn interest through staking or providing liquidity. This checks box #2 and #3 of the most common use cases.

Exchange fees

Some coins like Safemoon have tokenomics which are counterintuitive to being used for payments. This is likely why their team is building an exchange - so that their coin actually has utility. Coins that earn exchange fees are useful due to their profitability and often can be used for governance as well.


I'm not familiar with any meme coins that have governance but I'm sure there are plenty on the way if they aren't already some out there.


Based on the definition of utility, a decent number of meme coins fall into at least one of these categories. But we need to ask ourselves: is this enough to make them a smart investment?


2 important considerations


All memes have a lifespan. Holding coins long enough to see gains is important, but don't get too comfortable sitting in a position for a long time. Trading memes is a lot like playing hot potato. Often times you will need to enter and exit of positions quickly to avoid getting stuck in a meme that loses its relevance. The internet is a fast-moving place, getting stuck in a meme that becomes irrelevant overnight can evaporate your money.


Communities play a HUGE role in the increasing the lifespan of a coin. Building hype is essential to increasing price. If your community can meme hard, your coin will survive longer.



My expectation before writing this article was that meme coins would not have utility. To my surprise, my perspective changed once I broke down what makes most "traditional" coins useful. While on the surface meme coins look like a joke, they share many of the qualities that the other cryptos have. A key difference between meme coins and traditional coins is that the former must remain relevant in order to retain its value.

To answer the question "do meme coins have utility?" my answer is yes. I think newer memes have higher capacity for utility when compared to older coins like Dogecoin due to the robustness of their blockchains. Meme coins are valued solely on speculation; which is why hype can cause the price to skyrocket - even if there is no utility.

Hopefully now you have a clear understanding of what gives meme coins utility. Take everything into consideration when determining your trading strategy and you will see much greater success throughout your crypto trading career.

Remember: Hot potato. Musical chairs. Trading meme coins. It's all the same.

Oh... and Bitcoin is a meme coin ;)

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