Meme Asset

Definition ∞ A meme asset is a digital asset, typically a cryptocurrency or non-fungible token, whose value and popularity are primarily derived from internet memes, social media trends, or community-driven speculation. These assets often possess limited inherent utility or foundational technology. Their market movements are heavily influenced by social media sentiment, viral marketing, and collective online attention rather than traditional financial metrics. They frequently exhibit extreme price volatility.
Context ∞ The discussion surrounding meme assets in crypto news often focuses on their speculative nature and the rapid wealth creation or loss they can generate. These assets pose significant risks due to their reliance on sentiment and lack of fundamental value, leading to debates about investor protection. A critical development involves regulatory bodies beginning to scrutinize the marketing and trading practices associated with these highly volatile digital assets. Observing how regulatory frameworks address meme assets will shape their future market presence.