Alts, Memes, and More

There are many different terms for describing new cryptocurrencies and below are some general categories that are often used when speaking about new tokens - but these definitions are subjective and contextually nuanced. Be careful when investing in speculative assets as the value can shift drastically as result of community sentiment.


Altcoins (alternative coins)

Historically, any cryptocurrency asset that is not Bitcoin has been referred to as an alt coin. Smaller coins have also received their own sub categorizations to help differentiate, though the term is often used to compare Bitcoin against the rest of the industry (see Altcoin Index). Some may differentiate “alt coins” from other sub categories based on an assessment of the “utility” of the currency (see Web3: Decentralized Finance (DeFi) & Decentralized Apps (DApps)).

Memecoins (community coins)

Memecoins (a subset of alt coins) are often driven by community sentiment, viral memes, and social media hype rather than traditional fundamentals. While these tokens are memetic in nature—primarily dependent on attention and volume—they can also foster tight-knit communities that help sustain their growth. Major memecoins like Dogecoin and Shiba Inu initially found success through internet culture and influencer endorsements, illustrating how fast a memetic project can gain traction. However, because they rely heavily on public sentiment, memecoins are prone to extreme volatility. It’s crucial for potential investors to understand the speculative nature of these assets and the rapid market shifts that can occur.

“Hype” coins

A relatively new term referring to brand new cryptocurrency assets that illicit significant hype or attention upon their initial release. These coins can gain serious media attention and are typically launched in relation to a specific event or a particular POI and can generate extreme volume and volatility, introducing opportunity for significant gains and losses in a very short time.

Sh!tcoins

New token launchpads have made it easy for anybody to launch a token on any blockchain, which has lead to thousands of tokens getting released each day that have little to no value or real-world use cases. Navigating new launches typically involves short-term trading across a large number of unfamiliar tokens and will often be referred to as the “trenches” of cryptocurrency. There is consistent opportunity for exponential returns, but this is not a space for most users and inexperienced traders can expect to make costly mistakes.

For more information about alternative types of cryptocurrencies, see Alternative Asset Types