Meme coins, as you may know them, mostly start as a joke. A funny image, a viral tweet, and the next thing you realize is a new cryptocurrency with a cartoon dog trading at billions in market cap. Coins like Dogecoin and PEPE coin have attracted massive real-world attention, raising the question of whether they can replace your local currency for things like transportation and groceries.
According to some people, meme coins could actually replace your local currency because they are built on a decentralized infrastructure that improves safety and transparency. But amid these benefits, these tokens also face serious challenges like volatility.
Take a quick look at the PEPE coin price today, for instance. While it peaks at $0.00001029 as of 19/6/2025, it recently dropped by about 7% in 24 hours, causing a $620 million decrease in market value. This can be problematic, especially in a world where dependable means of exchange are everything. After all, a coin’s value shouldn’t feel like a popularity contest.
Adoption and real-world usability
There’s no denying the fact that meme coins are becoming exceedingly popular. A recent report has revealed that more than eight in ten American crypto holders invest in these tokens. As if that’s not enough, BDC Consulting recently ranked this sector the fourth most valuable in crypto, surprisingly placing it higher than decentralized finance and other blockchain-related services.
Unfortunately, most meme coins have a lifespan of only one year, a third of an average cryptocurrency project. As a result of this limited lifespan, an average of more than 2,000 memecoins fail every month, explaining why many people are wary of them. You don’t want to keep changing means of exchange like you do your clothes.
As such, it makes sense that many people don’t use them to buy things, but to hold or swap them in the hopes of favorable price shifts. In contrast, stablecoins like USDT are making waves in cross-border payments and even in regions with high inflation rates. For memecoins, the case is different because they haven’t reached that level of utility or institutional trust.
Questions about security and scams
With the number of scams and cyberattacks increasing daily, it shouldn’t be surprising that everyone is working hard to ensure they are safe. And in the crypto industry, things are no different. In 2023 alone, crypto exchanges lost more than $1.7 billion, highlighting the prevailing need for online security in this sector.
This urgency is even more prevalent in the meme coin space, considering how quickly the tokens are often created. That speed and looseness, sometimes without formal auditing or due diligence, can make the landscape ripe for exploitation. And mark you: anyone with basic technical knowledge can create a meme coin, making them a hotbed for scams.
Interestingly, TechPoint Africa suggests that over 40,000 memecoins are created every day. This ease of creation increases the likelihood of bugs in smart contracts or bad actor manipulation, which may result in funds being locked or lost.
Even if you’re just trying to convert your coins into cash, you might encounter liquidity challenges or unfavorable exchange rates, especially during periods of high volatility. Because of such disadvantages, security-conscious individuals may not want to explore these coins.
The challenge of regulatory uncertainties
Without clear regulatory guidance, building an infrastructure that can allow these tokens to function as reliable currencies becomes difficult. As such, payment processors may hesitate to support them while developers fear future crackdowns. For everyday users, this may mean more confusion, as you might not know whether using your favorite coin could someday lead to trouble.
It gets more serious in countries like China, which have a tough stance towards crypto-related payments. In 2021, the People’s Bank of China passed a law against crypto-related business activities, claiming they were illegal. In such regions, using memecoins can be risky.
And while other countries in places like Europe have created frameworks for crypto taxation or licensing, many still don’t distinguish between utility tokens, stablecoins or meme coins. This lack of definition becomes a major hindrance for mainstream adoption, as many businesses would not want to be associated with something that might later be banned.
But why do some people still trust meme coins?
The major boast of these tokens is decentralization. Simply put, decentralization points to distributing or delegating power and decision-making responsibilities away from a central point to multiple, often smaller, entities. In payments, this eliminates the possibility of single-point failures responsible for significant financial losses in traditional systems.
Decentralization also improves transaction speeds by eliminating the need for third parties. This can be handy for about 62% of modern consumers who, according to Global Finance Magazine, would opt for real-time payments if they had the chance.
On top of decentralization, the infrastructure behind these coins is immutable. Once you store data, no one can alter or delete it. And since no one can change data, users can trust that the information is accurate and has not been tampered with. Everyone can also verify data authenticity, as there is a transparent ledger where every transaction is recorded.
No one denies the fact that meme coins have brought much change to the crypto sector. If you understand their risks and limitations, they can be a fun way to participate in digital culture; just don’t expect them to completely replace the coins in your pocket soon.