The impact of social media and influencers on memcoin price dynamics

Memcoins such as Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), Floki (FLOKI), and others are often thrust into the spotlight thanks to social media's viral effects and the influence of high-profile personalities.

A 2023 study by LunarCrush found that more than 70% of memcoin price growth is attributed to Twitter (now X) and TikTok activity. For example, Dogecoin rose 800% between January and March 2021 after numerous tweets by Elon Musk, leading to a massive influx of new investors. This article will look at the key mechanisms of social media and celebrity impact on memcoins and provide specific historical examples.

The role of social media in popularizing memcoins

Social media platforms such as Twitter (now X), Reddit, TikTok, and YouTube are significant platforms for spreading the word about cryptocurrencies. Memcoins are particularly sensitive to trends and mass attention, as much of their value depends on popularity rather than utility. According to a report by CryptoCompare, more than 80% of memcoin price spikes between 2022 and 2023 correlated with increased social media mentions.

In 2021, after memes about Dogecoin appeared on Reddit, DOGE's capitalization went from $1 billion to $88 billion in less than six months. Similarly, in October 2021, the Shiba Inu memcoin (SHIB) soared 1,000% after massive Twitter posts.

Reddit plays a significant role in promoting memcoin. The r/WallStreetBets community, known for its campaign against hedge funds, actively supported Dogecoin, contributing to its dramatic rise. Messari's research found that posts on r/CryptoCurrency and r/WallStreetBets can influence cryptocurrency exchange rates by 15-20% per day.

Example: in April 2021, after a series of posts on r/Dogecoin, the number of search queries on Dogecoin increased by 300%, leading to a spike in trading volume on Binance.

The TikTok platform is also significantly impacting the memcoin market. In 2020, user James Galante launched the #DogecoinTikTokChallenge, encouraging subscribers to buy Dogecoin to bring its value to $1. This led to a 600% spike in the price of DOGE in just a few days, and trading volume on Binance increased by 200%.

Influence of influencers and celebrities

Elon Musk is the "father of Dogecoin"

Elon Musk, founder of Tesla and SpaceX, is one of the most famous examples of Influencers' influence on memcoins. Each of his tweets mentioning Dogecoin has led to significant fluctuations in the price of this cryptocurrency. For example:

• On February 8, 2021, Musk wrote, "Dogecoin is the people's crypto" — DOGE rose 40% daily.
• On April 1, 2021, he announced that SpaceX would launch Dogecoin to the moon, increasing its price by 35%.
• On May 8, 2021, after his appearance on Saturday Night Live, DOGE fell 30% as investors' expectations were not met.

Support for memcoins by other celebrities

Apart from Elon Musk, other celebrities have also helped popularize memcoins.

Mark Cuban is an American billionaire who owns the Dallas Mavericks basketball team. In 2021, he announced that his team was accepting Dogecoin to pay for tickets, which led to a 500% increase in transactions. He has also publicly stated that DOGE is a fun but promising cryptocurrency for mainstream use.

Famous rapper and producer Snoop Dogg posted an image of himself inspired by Dogecoin, increasing DOGE trading volume by 180% in 24 hours. He later released several NFT collections with Dogecoin references, further fueling interest in this cryptocurrency.

Legendary boxer Mike Tyson actively promoted Dogecoin, repeatedly publishing posts on Twitter that he had invested in DOGE. His statements were accompanied by an increase in the price of DOGE by 15-20% in the short term.

Finally, Donald Trump is the 45th and 47th president of the United States. In January 2025, he launched his own cryptocurrency, Official Trump (TRUMP), which initially rose from $4 to $70 but then plummeted in value.

Thus, the influence of celebrities on the memcoin market can hardly be overestimated. Their support can lead to short-term price spikes but also comes with risks associated with hype and possible manipulation.

Adverse effects of social networks and influencers

Some Influencers use their popularity to organize pump-and-dump schemes. In 2022, a Chainalysis study found that about 50% of new memcoins are created to manipulate the market.

A pump-and-dump scheme is a manipulative strategy in which a group of traders or influencers artificially inflate the price of an asset to sell it at an inflated value. It occurs as follows:

• The creators or large holders of memcoin start mass advertising via social media, causing a stir around the project.
• The price rises sharply due to an influx of retail investors who don't want to "miss the opportunity."
• Participants of the scheme who own large volumes of tokens sell off their assets at the peak of the price.
• After the reset, the tokens depreciate, and small investors are left with assets that have lost a significant portion of their value.

Example: Squid Game Token (SQUID). In October 2021, the memcoin Squid Game Token (SQUID), created after the popularity of Netflix's "Squid Game" series, rose 3000% weekly. Investors bought the token hoping for further growth, fueled by the developers' loud promises. However, a few days later, the creators withdrew $3 million from the project, blocked the possibility of selling tokens, and then completely disappeared, bringing the price of SQUID down to almost zero.

Some projects that have no real value use HYIP to attract investors. One of the most prominent examples was the LIBRA memcoin, introduced in February 2025. LIBRA was announced as a memcoin supposedly designed to support Argentine businesses.

The project received widespread attention after a post on social network X (formerly Twitter) on behalf of Argentine President Javier Miley. After that, the token quickly rose in value, and its market capitalization reached $4.5 billion. However, a few hours later, the exchange rate collapsed by 95%, and insiders withdrew more than $100 million from the liquidity, according to blockchain analysts.

Conclusion

The memcoin market remains highly volatile and prone to manipulation, making it attractive for short-term speculators but risky for long-term investors.

According to CryptoCompare's 2024 research, over 65% of memcoins created in the last two years lost more than 90% of their value within the first six months. This confirms that many memcoins are built solely on the hype effect rather than actual utility.

CoinGecko's data analysis shows that memcoin price spikes 80% of the time correlate with mentions on social media, especially on X (formerly Twitter) and TikTok. The influence of celebrities and bloggers on the market remains a critical factor, as their statements can cause both a meteoric rise and collapse in the value of memcoins.

For example, in April 2024, the memcoin PONZIINU rose 1100% in 48 hours after several popular TikTok influencers began actively promoting it. However, a week later, its value plummeted 97%, leaving thousands of retail investors in losses.

Messari experts emphasize that investors interested in memcoins should pay special attention to projects' transparency. Studies show that memcoins without a clear roadmap or realistic usage scenarios are 90% likely to lose most of their value within the first year.

Thus, social media and influencers have a twofold impact on memcoins. On the one hand, they can contribute to significant profits for early investors, but on the other hand, they create conditions for fraudulent schemes in which beginners often lose their funds.

To protect your capital, it is recommended that you use fundamental analysis, monitor liquidity behavior, and avoid memcoins that rely solely on marketing and HYIPs without a technological base.