Why memecoins are a ‘gateway’ for Gen Z

Memecoins may have started as jokes, but their influence on young investors is serious. Some have skyrocketed in value overnight, attracting Gen Z traders looking for quick gains and an easy entry into crypto. Dr. Najam Kidwai, a longtime investor, shared his insights on why these risky tokens are gaining traction – and what it means for the future of digital assets.

The success of memecoins tied to public figures like Donald and Melania Trump has reignited debate over their role in the crypto space. While some dismiss them as speculative hype, others see them as an accessible entry point for a new generation of investors.

"I don't think Trump or Melania could have done this once he had become president," Kidwai said. "At one point, $15 billion valuation. The 15th largest cryptocurrency in the world."

The astronomical rise of these tokens highlights just how influential memecoins have become. While Bitcoin and Ethereum dominate the market, many younger investors are choosing memecoins because of their low entry price and potential for rapid gains.

One notable example is $DOGE, which began as a joke but surged to a $90 billion market cap at its peak in 2021, largely fueled by social media hype. Other memecoins have seen similar explosive growth, reinforcing their appeal among younger traders.

Kidwai acknowledged the risks, describing memecoins as "high risk, high volatility" assets. But he also recognized their appeal, especially for Gen Z. "I think it's a branch of crypto where Gen Z like to play," he said.

Gen Z’s approach to investing

Unlike traditional investors who seek long-term growth, many younger traders are drawn to short-term, high-reward opportunities. Social media hype drives memecoin price swings, making them an easy first step into investing.

For some, these tokens are their first exposure to financial markets. The simplicity of buying and trading them, combined with their cultural relevance, makes them more appealing than traditional stocks or even mainstream cryptocurrencies.

But Kidwai warned that while memecoins can be a starting point, they shouldn’t be the end goal. "Most people do understand that it is high risk, high volatility," he said, emphasizing that investors should be cautious.

A more serious play: The C1 Fund

While memecoins grab headlines, Kidwai is also focused on more structured opportunities in the crypto space. His company, C1 Group, has been involved in the industry for years and is now preparing to launch the C1 Fund, a closed-ended investment fund that will be listed on the New York Stock Exchange.

"The focus there really is to give investors exposure to the top 30 leading companies in this space," he explained. The fund includes major players like Binance, Tether, and Circle, providing exposure to the top 30 companies in digital assets.

Unlike memecoins, which are often unregulated and unpredictable, the C1 Fund aims to provide a regulated and liquid investment option. With a minimum investment of just $10, it’s designed to be accessible while still offering exposure to the broader digital asset industry.

The next big trends: AI and tokenization

Beyond memecoins and investment funds, Kidwai sees artificial intelligence and tokenization as two major forces shaping the future of crypto.

"You're going to see a lot of stuff happening around AI agents, right? That basically are going to start automating a lot of our experiences," he said. AI-powered trading and automated financial tools could make investing more efficient, particularly for younger investors looking for an easier way to navigate the market.

Meanwhile, tokenization – the process of turning real-world assets into digital tokens – is already happening on a large scale. "Fractional ownership of properties, yachts – it's already happening," Kidwai said, citing companies like BlackRock and Fidelity that are pushing the trend forward.

For Gen Z investors who start with memecoins, these emerging technologies could offer the next step into more serious investments. AI-powered tools could automate trading decisions, while tokenization could introduce them to real-world asset investing within the digital economy.

From speculation to serious investing

Memecoins have proven to be more than just a passing trend. While they remain high-risk, they serve as an accessible starting point for many new investors. The key question is whether those who enter the crypto market through speculation will eventually transition to more structured and long-term investments.

With the rise of AI-driven finance and the growing push for tokenized assets, crypto’s evolution is far from over. And for Gen Z, memecoins may just be the beginning.

 

Listen to the whole interview on The Crypto Radio's live player or the Chain Breakers podcast.

FOR MORE STORIES LIKE THIS, TRY: journalist Bradley Hope on novel uses for memecoins, or five world leaders caught in memecoin scandals.