Meme coins are hot right now. Here's what you need to know about the wild corner of the crypto market.

• Trump's return to the White House has boosted interest in cryptocurrencies.

• Meme coins are types of cryptos often based on internet jokes but have extended to personalities too.

• Trump's $Trump coin has faced criticism, sparking numerous copycat coins and investor concerns.

President Donald Trump's support for cryptocurrencies has sparked renewed interest in digital currencies.

The former crypto critic has vowed to make the US the world's "crypto capital" — and even launched his own "meme coin" called $Trump.

Meme coins are cryptocurrencies often based on internet jokes or fads and often have fun logos or are associated with animals or characters. Personalities have also jumped on the bandwagon to launch their own tokens, including singer Jason Derulo, Caitlyn Jenner, boxer Floyd Mayweather Jr — and Trump himself.

Perhaps the best-known meme coin is dogecoin, the Shiba Inu dog-themed coin that Trump's close ally Elon Musk has long hyped. Dogecoin, a likely influence for the name of Musk's Department of Government Efficiency, surged soon after the election but is down about 40% over the past month.

Along with other digital currencies such as bitcoin, meme coins are based on blockchains — most often Solana.

Meme coins are usually very volatile and can experience rapid price swings. Coins generally start with prices of one cent or less, meaning percentage changes can be significant.

They are also sometimes linked to scammers and "rug pulls," when promoters attract buyers and then stop trading before the coin crashes, allowing them to pocket some of the proceeds.

Nicolai Sondergaard, research analyst at multichain analytics platform Nansen, told Business Insider that meme coins were not inherently risky investments.

"What makes them dangerous, however, is the people launching them with nefarious intentions and not playing fair," he said. "This is how we end up seeing the many issues of tokens being launched, quickly rising several hundred if not thousands of per cent, only to quickly dump on the majority."

Before his inauguration, Trump and first lady Melania Trump even launched their own meme coins — $Trump and $Melania.

"My new Official Trump Meme is here! It's time to celebrate everything we stand for: Winning! Join my very special Trump Community," the president said on X on January 18.

Other examples of meme coins include a token called $Hawk launched by viral internet personality Haliey Welch, the "Hawk Tuah Girl," and $Libra, a coin that led to a political scandal in Argentina after it was promoted on social media by President Javier Milei.