Internet capital markets describe a new fundraising approach where companies use digital-native financial instruments, primarily meme coins, to raise capital or promote their business. Unlike traditional stocks, these tokens often lack utility and serve primarily as speculative assets driven by hype.
This trend has seen both startups and established firms launching meme coins that achieve rapid, sometimes massive, market capitalizations. For example, Vine Coin, launched by Vine co-founder Rus Yusupov in January 2025, reached a market cap of nearly $500 million on its first day due to nostalgia-driven trading, although its value has since declined sharply.
Internet capital markets gained traction through platforms like the Solana-based launchpad Pump.fun and later Believe app, which cater specifically to these token offerings. Early adopters include AI projects and social media-related startups.
Businesses pursue internet capital markets primarily for two reasons: to raise funds and to boost marketing. Some issue tokens to generate capital directly, while others use meme coins as a promotional tool to attract attention and grow their communities. For instance, JellyJelly saw 10,000 signups immediately after launching its meme coin, which reached a $248.5 million market cap, though the tokens were not sold for funding.
While some critics view many projects under this model as lacking substance, analysts suggest that speculative enthusiasm can inject capital into the market and encourage innovation.
Legally, internet capital markets remain a grey area. Experts advise companies to seek legal counsel to determine whether their tokens qualify as securities, governed by regulations such as the Howey test in the US. Recent regulatory statements indicate a possible shift towards a more lenient stance on meme coins, emphasizing whether tokens are speculative community assets or function as capital raises.