What Are Meme Coins and Why Do They Crash?
Ask students: What is a "meme coin"? How many new types of meme coins are created per day?
In the up-and-down world of cryptocurrency, so-called meme coins are perhaps the most bewildering. The joke-inspired digital currency is all over the internet with new tokens popping up every day by the thousands. The value of some jumped thanks to viral trends or celebrity endorsements. But most never take off, crash or disappear. Economics correspondent Paul Solman reports.
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Discussion Questions
- What is a "meme coin"?
- How many new types of meme coins are created per day?
- When did meme coins originally debut?
- Why did the creator of Doge Coin release it into the world?
- What is a "rug pull"?
Focus Questions
Do you think there should be more legal regulation around cryptocurrency to help prevent "rug pulls" and meme coins that are designed to attract investor money and then fail?
Media literacy: Correspondent Paul Solman speaks mostly to crypto investors and people close to the industry for this segment. Who else would you want to hear from to better understand the risks of meme coins?
Extension Activity
Read and discuss this article from the Associated Press: "Justice Department will disband its team focused on cryptocurrency crimes"
- Do you think the Justice Department needs a special team that focuses on cryptocurrency crimes?
- Does reading this article make you think that cryptocurrency should be more closely regulated by laws and oversight, or do you think there is still too much regulation of the industry? Why do you think so?
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Republished with permission from PBS NewsHour Classroom.
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