What is a "Memecoin?"
The Dangers of Memecoins ...
Memecoins are a type of “cryptocurrency” that have no intrinsic value, no use case, and that come with no promise of profit or ownership rights (beyond owning the memecoin, itself). For those reasons, the SEC does not consider most memecoins to be securities and, instead, considers them a type of digital collectible.
Like sneakers, baseball cards and vintage comic books, people buy memecoins because of a connection to their theme, their historic significance, and the hope that they might increase in speculative, secondary market value. Unlike other collectibles, memecoins trade 24/7, 365 days a year on decentralized crypto exchanges, making them extremely liquid.
As speculative assets, memecoins represent the ability to monetize attention around a brand, a personality, or an event.
PNUT was launched to protest local authorities who confiscated and euthanized an adorable pet squirell named Peanut. As of 7/3/2025, PNUT is ranked #168 on Coinmarketcap.com, out of millions of cryptocurrencies, with a total marketcap of $241M, and daily trading volume of $212M!
Whenever there is a lot of money involved, there are scammers who work to game the system. To understand how these scams work, you need to have a basic understanding of how decentralized exchanges work.
Every memecoin is launched with a liquidity pool, in which the developer deposits equal amounts of memecoins and value tokens. On the Solana blockchain, the value token is usually Solana (SOL) or a stable coin like Tether (USDT). If you have 200,000,000 memecoins and 100 SOL in the liquidity pool, it means the value of 200M memecoins is equal to the value of 100 SOL (approximately $15,300 as of this writing).
The way token prices rise and fall is based on people buying or selling the memecoin into the liquidity pool. As people buy the memecoin, they add value tokens to its liquidity pool while withdrawing memecoins from the pool. This makes the memecoins that remain increase in value because a smaller number of memecoins are now worth as much as the increased quantity of the value tokens (for example if there are 200M memecoins and 100 Solana (SOL) in the pool and 100M are bought for 50 SOL, there would remain 100M memecoins and 150 SOL ... meaning the value of the remaining 100M memecoins is the same as 150 Solana (SOL).
PUMP-N-DUMP RUG PULLS -- Many scam developers will launch memecoins and hold back a very large percentage of the supply for themselves. Then, after the coin has gone up in value, they will sell their supply into the liquidity pool, withdrawing all of the value tokens! Some scammers are happy to rug pull for $1,000 or less in value, while others will wait to run off with hundreds of millions! Regardless, the result is the same ... the remaining buyers end up losing all the value they originall traded and are left holding worthless tokens.
For example:
Let's say there are 1 Billion total memecoin tokens minted by a scam developer.
They keep 800M tokens (80% of the token supply) for themselves.
200M of the token are paired with 100 SOL and added to its liquidity pool.
After the number of SOL in the pool has increased to 500 SOL, the developer sells the 800M tokens they kept for themselves.
This results in 850,000,000 memecoins and maybe 2 SOL remaining in the liquidity pool.
The 150M memecoins that were sold for 400 SOL can now only be redeemed for the approximately 2 SOL that remains in the pool.
To make matters worse, scam developers now use "bundler" software designed to hide the amount of tokens they control. Instead of holding all their tokens in a single wallet, which would be easy to see, they will spread out their supply cross hundreds or thousands of different wallets (accounts) making it look like there are more buyers of the coin than there really are. They even have software that performs "wash trading" that makes it look like these wallets are buying and selling their token! Once enough real buyers are fooled into buying their token, they press a button and all the wallets they control start selling so they can withdraw all the value from its liquidity pool!
LIQUIDITY POOL TOKEN RUG PULLS -- Another way for scammers to perform a "rug pull" is to not burn the Liquidity Pool token. This way they can redeem their LP token and withdraw all the liquidity from the pool (memecoins and value tokens) at once!
INFLUENCER RUG PULLS -- Some scam developers will work with influencers to launch a memecoin that the influencer will help promote. They have offered $150,000 upfront for influencers to tweet about their new memecoin, causing a rush of fans and crypto speculators to begin buying. The scammers perform a rug pull and the influencer is advised to say their account was hacked and they weren't responsible for the tweet. The influencer keeps the upfront money they received and is left to deal with reputational damage while the scammers disappear with millions in value.
Meme Coin Strategy ...
Proprietary Apps for Fairness and Fun!
We've developed proprietary apps to promote fairness and protect our buyers:
WHITELISTED AIRDROPS -- By registering with a Phantom wallet and completing social media quests, you can qualify to claim FREE* tokens from our proprietary Airdrop Claim App (*network fees apply.)
WHITELISTED PRESALES -- No purchase is necessary to claim airdrop tokens, but those who choose to purchase during a memecoin's presale will qualify to receive more free tokens than those who don't! This is designed to encourage presale participation while reducing the negative effect of airdropped tokens being dumped once the liquidity pool goes live.
EVERYONE GETS TO BUY FOR THE SAME PRICE -- Instead of every buyer paying more than the last, all presale buyers get to buy for the same, presale price!
BUY LIMITS -- All whitelisted wallets are limited to a maximum purchase amount. This is intended to:
-- minimize whale wallet accumulation;
-- prevent buyers from overextending themselves, and;
-- decentralize the token supply among a large base of presale buyers.
SAMPLE TOKENOMICS -- Most memecoins launched by MemecoinStrategy.xyz will follow the following tokenomics formula:
75% Presale supply
5% Airdrop supply
10% Liquidity Pool
10% Developer supply:
LIQUIDITY POOL -- Following the presale, a memecoin's liquidity pool will be created on Raydium with the same starting price as offered during the presale! This allows potential buyers, who missed their opportunity to purchase during the presale, the opportunity to buy on decentralized exchanges for close to the same presale price ... if they're among the first to purchase.
LIQUIDITY POOL TOKEN BURN -- The LP Token will be burned after a memecoin's liquidity pool is funded, making it impossible for the developer to withdraw liquidity at a later date.
AIRDROP CLAIM -- After trading begins on decentralized exchanges, everyone qualified to receive free tokens will be able to claim their airdrop. (Note: a small amount of Solana (SOL) must be held in your Phantom wallet to pay for network fees when claiming tokens.) Airdrop distribution is intended to reward participants for helping to create awareness for the memecoin and to increase the number of wallets holding the memecoin which will help qualify the token to be listed on Coinmarketcap.com and Coingecko. (Note: No guarantee of listings on Coinmarketcap.com or Coingecko is expressed or implied as they are independent, third party companies responsible.)
FAIR DEVELOPER COMPENSATION -- Funds raised from the presale will be used to compensate developers for launching memecoins and to fund liquidity pools, pay for enhanced listings on DexTools and DexScreener, and to pursue listings on Coinmarketcap.com and Coingecko. Developer token supply will not exceed 10% of tthe total supply. Developer's are also compensated with a modest 1% transfer fee on all memecoin transfers.