A memecoin is a token created around a joke, meme, or community rather than a technical purpose. For tax purposes it is property like any other digital asset; the difference is how often it goes to zero.
Buying a memecoin with ETH or SOL is a sale of the ETH or SOL. Selling it is a second event. A token that collapses is not deductible until it is sold or abandoned, and many memecoins keep trading at fractions of a cent, which the IRS has said is not worthless.
Traders in memecoins accumulate hundreds of small taxable events and often cannot reconstruct basis after the fact. Worthless crypto.
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Definitions are general information, not legal advice, and may not reflect the most recent changes in law.
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