Let’s look at DOGE coin as an example. Technically, it is no different from Bitcoin.
DOGE is backed by a community and supported by Elon Musk, similar to other meme coins like BRETT and NOT, which have specific functions within their respective ecosystems.
From the perspective of Islamic fiqh (Islamic jurisprudence), money can be anything that serves as a medium of exchange—whether gold, silver, flower petals, leather, or paper—as long as it is widely accepted by people. In short, cryptocurrencies qualify as money if they are commonly recognized (ʿurf) and can be classified as māl (property), specifically intangible property.
Based on the principle that the default ruling on things is permissibility, my personal opinion is that fundamental meme coins, by their very nature, cannot be inherently prohibited. If a user or investor understands and aligns with the values of a community, then the decision to use or invest in a particular coin should rest with the individual.
However, a new category of meme coins has emerged—those created purely for speculation, designed to manipulate the market for profit, commonly known as “pump and dump” schemes. Some blockchains, such as Solana, have facilitated the rise of such meme coins, which often lack a solid foundation and experience rapid price fluctuations.
It is important to distinguish between two types of meme coins:
- Fundamental meme coins – Those with a strong community, real-world utility, and long-term potential.
- Non-fundamental meme coins – Speculative assets created for quick profits, often lacking substance and prone to collapse.
Recognizing the difference between these two categories is crucial for making informed investment decisions.
If a meme coin has a solid foundation, an active community, and clear development prospects, that is one scenario. How can you determine this? If you are willing to hold the coin long-term, believing in its growth and real-world applications (as seen with DOGE, NOT, and BRETT), then such a meme coin can be considered fundamental.
However, if a coin has no use case and is bond to collapse, yet you hold it short-term to profit off later investors, this approach is clearly impermissible.
Allah knows best.
