Meme Coins: Extreme Speculation Dressed as Entertainment

The term 'meme coin' has become synonymous with speculative investing and hype cycles. At its core, a meme coin is a token created on an existing blockchain, often with unlimited or massive supply, and no functional utility beyond speculation.

While some meme coins have achieved real market capitalization, such as Dogecoin, which started as a joke but has since become a legitimate asset with over 10 years of operation, most are launched as cash grabs and eventually go to zero.

The risks associated with meme coins include concentration of ownership, rug pulls, and extreme volatility. In India, where meme coins are subject to a 30% tax on gains and no loss offset, the combination of high risk and unforgiving tax structure makes them especially hazardous for investors.