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Does China Invest Into Memecoins? | Insights 

 

By Market Steam Jan 18, 2025

 

 

China has had a significant impact in the growth of several memecoins, including Pepecoin, being recorded as the earliest regional investor. 

 

China remains a top player within the cryptocurrency markets despite national restrictions on crypto mining and trading.

 

In 2024, China accounted for 70% of crypto’s trading volume alongside South Korea and other Asian countries. Reuters report highlights that the region contributed $791 billion of the $1.17 trillion worth of bitcoin traded in February. 

 

This high interest from China underscores retail’s continued interest in acquiring digital blockchain assets despite the lack of government protection following its institutional ban of trading facilitation and mining activities in the country.

 

China’s retail’s crypto investments span through various sectors within the ecosystem including memecoins. In May 2023, reports from Coincu indicated that the Chinese were responsible for the early success of Pepe the frog memecoin which now trades at $7.88 billion market capitalization according to market data from CoinMarketCap. 
 

To further highlight China’s role in the early and continued growth of Pepecoin, in Blockworks report on US user migration to a China-owed social app called “Rednote,” in the wake of TikTok ban in the United States, data highlights that Pepecoin makes up the few crypto conversations on the Asian social app, reflecting the Chinese active involvement with the memecoins. 

 

As digital tokens stored on the blockchain that represents varying concepts, ideas and cultures, but generally designed to be amusing and fun, memecoins have become a significant piece of the cryptocurrency markets. 

 

Boasting an industry market capitalization of $113.3 billion with over $20.64 billion in trading volume in the past 24hrs according to data from CoinMarketCap, active memecoins surpass 2,254, with Dogecoin, Shiba and Pepe leading the sector in market valuation. 

 

Being an highly speculative investment segment within Crypto, memecoins experience frequent price swings and are subject to widespread manipulation by top traders or institutions.