Let’s get it out of the way: Haha, Fartcoin! Coin with “fart” in the name!
Now, on to the reality: Memecoins — meme-based cryptocurrencies — are surging in market value after President-elect Donald Trump’s reelection and his pledge to make the U.S. the "crypto capital of the planet." Crypto enthusiasts are anticipating a boost to the industry under a second Trump term, a sentiment that’s already been reflected by a record Bitcoin valuation earlier this month.
That may be why — despite memecoins being completely worthless — people are investing in them more than ever. Fartcoin, launched in late October, peaked at a valuation of $836 million on Monday, according to NBC News. It's surpassed Dogecoin, a memecoin with a dog mascot that surged in value after Trump created a nongovernmental advisory group nicknamed DOGE.
Memecoin investors include bitcoin millionaires and people grasping at the chance to hit it big.
“All these kids are like, ‘All the good stocks are way too expensive. And houses? I can’t afford them,’” Omid Malekan, who teaches crypto at the Columbia Business School, told CNBC. “So ‘I’ll gamble on something that can ‘10x’ my money, and if I lose it all, who cares? I was screwed anyway.’”
It’s a big gamble that memecoins can make you a millionaire overnight. You’d be betting on the chance that someone will be willing to pay more than you did for an inherently worthless investment, because they think someone will pay more than they did, and so forth.
Toe Bautista, a research analyst for crypto trading firm GSR, described memecoins as the riskiest kind of gambling.
“Because they’re worthless, you’re betting on the ‘greater fool,’” Bautista told NBC News.
Already, there are people who have lost money on memecoins that gained huge valuations rapidly after launch and tanked immediately after, benefiting a small number of investors while everyone else loses. The HAWK coin, launched by Talk Tuah podcast host Haliey Welch, was one of those.
Despite its unreliability, the crypto rush is likely just starting. Trump’s crypto venture, World Liberty Financial, has been buying millions of dollars worth of niche coins, Bloomberg reported on Friday — hinting at a far more crypto-friendly administration to come.
“There are lots of events in 2025 that can help drive bitcoin and crypto prices up further,” Gracy Chen, CEO of crypto group Bitget, told NBC News.
