Social Media Hype Fuels Memecoins as Regulators and Critics Sound Alarms
- Memecoin market volatility spikes as MEME, $TRUMP, and $LIBRA reflect speculative trends tied to social media and political figures. - $TRUMP drops 8% amid broader crypto selloff, drawing SEC scrutiny over its political influence and Trump's financial exposure. - State-backed memecoins like $CAR (Central African Republic) and $LIBRA (Argentina) collapse rapidly, exposing governance and technical flaws. - Critics highlight memecoins' reliance on hype over utility, urging investors to treat them as high-ri

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The memecoin sector has recently seen heightened volatility, as both individual and institutional investors speculate on tokens linked to internet trends, prominent personalities, and global events. Although the space remains mostly speculative and lacks regulation, recent price swings and market activity have brought attention to five tokens that could offer notable short-term returns.
MEME, the native token of 9GAG’s web3 venture Memeland, is currently valued at $0.002602 with a market cap of $143 million. Its price is influenced by its integration with 9GAG’s social platform, which features NFT projects and tools for creators to earn revenue. Despite its smaller market size, MEME has climbed 0.58% in the past 24 hours, supported by increasing interest from retail investors and social media buzz.
Introduced by former U.S. President Donald Trump in early 2025, $TRUMP reached a peak market cap of $27 billion before dropping sharply to $2.7 billion amid a widespread crypto downturn. The token, managed by Trump’s family business CIC Digital, continues to be a focal point for both politics and finance. Recent figures indicate $TRUMP fell 8% in one session, wiping out $50 million from Trump’s theoretical holdings. Lawmakers such as Sen. Jeff Merkley have urged the SEC to regulate the token.
First Lady Melania Trump’s memecoin, $MELANIA, launched in January 2025 but has since shed 90% of its highest value. Overseen by her company MKT World, LLC, the token has faced criticism for its vague purpose and unclear governance. Its recent 8% drop echoed the broader market’s decline, and its limited liquidity and lack of institutional support restrict its growth prospects.
The Central African Republic introduced its official memecoin, $CAR, in February 2025 as part of a “national development experiment.” Endorsed by President Faustin-Archange Touadéra, the coin’s value crashed by 95% within days of trading. Despite government backing, the collapse highlighted the dangers of state-issued memecoins, especially those without solid technical or economic foundations.
Argentine President Javier Milei’s memecoin, $LIBRA, soared 500% after its debut but has since dropped 80% from its peak. Analysts attribute the initial surge to Milei’s popularity and economic reforms, but point out the token lacks practical applications. Its wild price swings have prompted regulatory probes into possible financial wrongdoing.
The memecoin market is still driven mainly by retail speculation, with tokens like MEME, $TRUMP, and $LIBRA reflecting larger economic trends. For example, $TRUMP’s price often moves in tandem with Trump’s political statements and stock market shifts. Ongoing regulatory ambiguity, especially in the U.S. and Europe, continues to dampen investor sentiment.
Detractors claim that memecoins inherently lack the utility and governance found in established cryptocurrencies. “These coins rely on viral trends and celebrity backing rather than technological progress,” a blockchain analyst noted in a recent analysis. “Their survival hinges on ongoing hype, which is naturally unstable.”
Despite these concerns, the sector’s ease of entry and pronounced volatility continue to attract traders seeking quick profits. As of early October 2025, MEME’s 0.58% daily increase and $TRUMP’s unpredictable fluctuations demonstrate the potential for swift, though uncertain, gains. Investors should approach memecoins as high-risk investments and thoroughly research token structures and regulatory updates before participating.
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Source: [1] title1 [2] title2 [3] title3 [4] title4 [5] title5 [6] title6 [7] title7
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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