Why "Ridiculous" Cryptos Often Deliver the Biggest Gains  | | Robert Ross
Speculative Assets Specialist | "These guys are definitely millionaires now." I received a text from a friend last week. He's also a longtime crypto investor. He sent me a Reddit r/personalfinance post from December 9 with the title, "My husband put a significant amount of our net worth in a cryptocurrency token called Fartcoin. What do I do?" 
View larger image The screenshot of this post had made the rounds on crypto-related social media. We all had a nice laugh about how ridiculous it was for someone to "invest" in a cryptocurrency called Fartcoin. But it looks like the husband had the last laugh, as Fartcoin - which trades on Coinbase (COIN) - is up over 500% since this post... 
View larger image While Fartcoin is obviously an insane name for a cryptocurrency, it speaks to a few issues I see with prospective crypto investors who have left a ton of money on the table this bull cycle. Hot Air Rises Memecoins like Fartcoin, Dogecoin (DOGE), and Shiba Inu (SHIB) often appear absurd at first glance. They're not backed by groundbreaking technology, don't have any intrinsic value, and rarely offer real-world utility. Yet, despite all this, they've become some of the best-performing cryptocurrencies in previous bull cycles. Take Dogecoin, for example. Originally created as a joke in 2013, DOGE soared over 12,000% during the 2021 bull run. Shiba Inu, another memecoin that launched in 2020, delivered eye-watering gains of over 40,000,000% to its early investors. These tokens turned a few hundred-dollar investments into life-changing fortunes. 
View larger image So, why do memecoins perform so well? The answer lies in their ability to capture attention and build strong communities. Memecoins thrive in the digital age, where viral content, online culture, and social media hype hold enormous sway. Their value isn't derived from utility but from their ability to create excitement, humor, and FOMO (fear of missing out) among retail investors. When Elon Musk tweeted about Dogecoin being the "people's crypto," its price skyrocketed. Shiba Inu built a cult following by branding itself as the "Dogecoin killer," leveraging its low price per token to attract small investors who hoped for exponential gains. Fartcoin, ridiculous as it may seem, is just the latest memecoin to capture this same viral momentum. Ridiculous Value The absurdity of memecoins is not a bug but a feature. Their ridiculousness is what makes them stand out in a crowded crypto market with thousands of competing projects. In a world dominated by serious-sounding tokens like Ethereum (ETH) and Solana (SOL), memecoins inject fun, relatability, and a sense of rebellion into the ecosystem. When you buy a memecoin, you're not just buying a digital asset... you're buying into an idea, a joke, or a cultural moment. It's a shared experience among holders, a badge of honor that says, "I'm part of this community, and I don't care how ridiculous it looks from the outside." That sense of community is incredibly powerful and has proven time and again to drive demand and price. In fact, the very name "Fartcoin" encapsulates why memecoins succeed. It's absurd, memorable, and easy to talk about. Compare that to something like "XYZ Protocol Token." Which one do you think is going to catch the public's imagination? Additionally, the low price per token - often in fractions of a cent - feeds into the psychology of small investors. People love the idea of owning millions of tokens, even if the total value is only $100. It creates the illusion of massive potential upside and attracts those who are new to investing. All of this doesn't mean you should YOLO your savings into memecoins. Most of these projects will end up worthless, leaving latecomers holding the bag. But that doesn't mean you should completely ignore them, either. Grab Your Surfboard We're in unprecedented times. Global money printing, loose monetary policies, and retail investor enthusiasm have created an environment where even something as ridiculous as Fartcoin can skyrocket in value. You don't have to like it. You don't even have to understand it. But you do need to respect it. Memecoins have been among the best-performing assets in the crypto market for years. Ignoring them entirely is like refusing to surf a wave because you don't like how it looks. Yes, you might get wet. You might even wipe out. But the only way to catch the wave is to get in the water. So, instead of making fun of Fartcoin and other memecoins, consider allocating a small portion of your portfolio to this high-risk, high-reward sector. Because in the end, the joke might just be on you. Stay safe out there, Robert Want more content like this? | | | | | | 
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