In late 2024, I awoke to discover that I had become, unwittingly, the face of numerous cryptocurrencies. The first alert arrived in my inbox: a memecoin named Dork Nerd Geek ($DNG) had been minted using my photograph, boasting an initial market capitalisation of US$29,000. Before I could process the absurdity, the value rocketed to US$100,000—and then to US$800,000 within the hour.
What followed was a bewildering display of real-time financial manipulation. I tuned into a livestream by influencer Andrew Tate, whose derisive catchphrases became triggers for new tokens. Two seconds after he uttered “Fuck Matt Shea,” a coin called FUCK MATT SHAE [sic] spiked in value; another surge followed when he added “…is not a generational asset.” Even Tate’s off-screen breaks—actuated by crude boasts about urination—sent the coin rocketing again.
By the end of the broadcast, roughly US$2 million had been traded on tokens mocking me, and hundreds of millions more on other coins Tate mentioned. Yet nearly all of that value evaporated as quickly as it appeared. Hundreds of thousands of Tate’s followers, swept up in the spectacle, found their holdings worthless—while a small cadre of insiders reaped six-figure windfalls.
Memecoins 101: What Makes Them Different?
Defined by Their Value—or Lack Thereof
Unlike established cryptocurrencies such as Bitcoin and Ethereum, which at least aspire to store value or power decentralized applications, memecoins are built around jokes, memes, or celebrity hype. As crypto author David Gerard puts it, “All crypto is bullshit, but memecoins are consciously bullshit.” They acknowledge an “inherent lack of value,” existing purely as tradable tokens on blockchains like Ethereum or Binance Smart Chain.
The Hype Engine
Memecoins distill the internet’s attention economy into financial instruments. A mention by a high-profile figure—be it influencer Andrew Tate, YouTuber Logan Paul, tech visionary Elon Musk, or former President Donald Trump—can spark hypervolatility. Social-media platforms become trading pits, where a single offhand comment triggers spikes of millions of dollars in market cap, only to subside moments later.
The Mechanics of the Scam: Rug Pulls and Pump-and-Dumps
Rug Pulls Explained
In a rug pull, token creators and their inner circle mint the bulk of a new coin’s supply and seed its liquidity pool (the reserves backing trades). Early investors buy in, driving up the token’s on-chain “price.” At a predetermined moment, insiders withdraw their share en masse—“pulling the rug”—leaving retail holders with worthless tokens. As Gerard notes, “The only way you get money is by other people losing money.”
Pump-and-Dump Dynamics
A pump-and-dump follows a similar pattern but often uses existing tokens rather than freshly minted ones. Promoters hype a token’s prospects—sometimes through orchestrated social-media campaigns—inducing a buying frenzy. Once the price peaks, the promoters sell (“dump”), triggering a collapse that devastates latecomers. Both schemes exploit the absence of stringent regulatory oversight in the crypto realm.
Case Studies: Tate’s Stunt and Trump’s Token
Andrew Tate’s Real-Time Manipulation
On one livestream, Tate drove memecoin mania by leveraging insults as trade signals. Followers minted dozens of variants—Disgraced News Gatherer, Matt Shea is a faggot, and even Take My Wife Tate (CUCK)—each vying to capture investment flows. Within hours, the combined trading volume eclipsed US$200 million, only to revert to near zero when the spectacle ended. Crypto sleuths like Coffeezilla and bored2boar have documented these pump-and-dump–style manipulations, highlighting consistent profit funnels to Tate’s inner circle.
President Trump’s $TRUMP Offering
On 17 January 2025, three days before his second inauguration, Donald Trump launched $TRUMP, a memecoin promising its top holders exclusive White House dinners and tours. Unlike most memecoins, $TRUMP offered a concrete “utility”—access to the president—driving its market cap past US$2.5 billion. Yet insiders held 80 percent of the total supply, with “unlock” schedules allowing periodic dumps. CNBC reports that 58 wallets tied to Trump profited over US$10 million each, while 764,000 smaller holders lost money. Transaction fees alone netted Trump’s camp an estimated US$100 million.
Why Do People Keep Falling for Memecoins?
Generational Disillusionment
A 2024 Pew Research Center survey found 42 percent of men aged 18–29 have traded crypto, compared to just 11 percent of men over 50. Many young investors, frustrated by stagnating wages and perceived failures of traditional finance, view memecoins as rebellious, high-risk gambles. Sander Lutz, the nation’s first crypto-focused White House correspondent, observes that memecoins “satirised a financial system that increasingly looked like a silly game to those on the outside.”
The Fallacy of Outsmarting the Scam
Investors often rationalise that they will “time” the market—buying before a token’s hype peaks and selling before insiders dump their holdings. In reality, as Gerard warns, “crypto is an ever-escalating series of get-rich-quick schemes, where a whole bunch of people think they’re smarter operators than the previous operator—and generally they’re not.” Insider channels on Discord and Telegram promise early warnings, but participants frequently turn out to be the last to lose.
Cultural Acceptance of the Rip-Off
Remarkably, some communities applaud rug pulls as badges of success, viewing them as a feature rather than a bug. “It’s accepted practice: someone rips you off, you shrug, and move on to the next token,” Lutz notes. The absence of post-loss support—unlike gambling’s Gamblers Anonymous—leaves many without recourse when their life savings vanish.
Attempts at Legitimacy: Utility Roadmaps and Fake Promises
Some memecoins advertise elaborate roadmaps, airdrops, or off-chain voting systems to feign utility. Logan Paul’s $ZooToken purported to underpin a Pokemon-style game; $Batman claimed to fuse entertainment, gaming, and real-world use cases. In each instance, the promised services never materialised, underscoring the hollow nature of most token projects.
Regulatory Gaps and Calls for Oversight
David Gerard insists, “It is absolutely the government’s job to stop mis-selling of investments.” Yet since Trump appointed a pro-crypto chair to the U.S. Securities and Exchange Commission, the agency has dismissed or withdrawn high-profile enforcement actions and surrounded itself with industry roundtables. Meanwhile, legislation like the Stable Bill and Genius Bill—which nods to Trump’s 2018 “stable genius” quip—aims to integrate stablecoins into government disbursement systems, potentially enriching insiders further.
Expert Recommendations: How to Protect Yourself
- Avoid Hype-Driven Tokens: Steer clear of coins marketed through celeb endorsements or social-media stunts.
- Treat Memecoins as Gambling: Allocate only disposable income you can afford to lose.
- Demand Transparency: Research tokenomics, ownership distribution, and smart-contract code before investing.
- Advocate for Regulation: Support efforts to classify suspicious memecoins as securities subject to anti-fraud laws.
Conclusion: A Cautionary Tale
Memecoins have emerged as a potent symbol of the internet’s speculative frenzy—distilling viral attention into fleeting market phenomena. While a select few insiders and influencers profit handsomely, the vast majority of participants incur losses. As Andrew Tate’s profanity-driven pump sessions and Donald Trump’s White House token illustrate, memecoins exploit human psychology, social influence, and regulatory loopholes.
For the average investor, the prudent course is clear: steer well clear of memecoins, view them as high-risk gambles rather than legitimate investments, and demand stronger oversight to curb the worst abuses of this intentionally “bullshit” corner of the crypto universe.
