This week, something absurd happened.

A cryptocurrency called Fartcoin—yes, Fartcoin—hit a market capitalization of over $720 million. Take a moment to let that sink in.

What is Fartcoin?

This coin is classified as a meme coin. The project leverages humour, specifically fart jokes, and features playful “Gas Fees” that produce fart sounds with transactions. Despite its frivolous nature and lack of intrinsic value, Fartcoin has attracted a considerable following.

A meme coin with no intrinsic value, no real-world utility, and no meaningful purpose has achieved a market cap greater than 40% of all listed US companies.

You’re not dreaming. This is real.

It raises an important question: What on earth is happening here?

Let’s unpack this.

The Power of Speculation

Speculation has always existed in markets. It’s human nature. People love the thrill of betting on something that can give them life-changing returns overnight. FOMO—fear of missing out—drives this behaviour. It’s not about logic. It’s about hope.

In the 17th century, people bet on tulip bulbs. During the dot-com boom, people poured money into companies with no revenue, no customers, and no business model. Now, in the digital age, it’s Fartcoin.

This isn’t new. But it is dangerous.

Cryptocurrencies like Fartcoin aren’t investments. They’re bets. A game of musical chairs where the music can stop at any moment. Those who jump in early might make a fortune. But most people? They’ll be left holding worthless tokens.

Why? Because there’s no foundation under this market cap. It’s all air (if not farts).

When Market Cap Means Nothing

Here’s the problem with market capitalization: it’s a misleading number.

Market cap is calculated by multiplying the current price of an asset by the total supply. If one person buys Fartcoin for $5, suddenly the entire supply of Fartcoin is “worth” hundreds of millions of dollars.

But this is an illusion. It’s not real wealth.

Think of it this way: if you own a rare baseball card and you convince your friend to buy it for $1,000, does that mean every card like it is worth $1,000? Of course not. It’s a meaningless transaction in an illiquid market.

Yet, this is how cryptocurrencies like Fartcoin inflate their “value.” A handful of speculative trades create astronomical market caps. And headlines like “Fartcoin worth $720 million” add fuel to the fire.

The truth? If everyone tried to sell their Fartcoin at the same time, the market would collapse. The $720 million would vanish overnight.

This Is Not Investing. It’s Gambling.

Let’s call it what it is. Buying coins such as Fartcoin is not investing. It’s gambling. It’s playing roulette in the hope that you’ll hit the jackpot.

Investing involves analysing businesses, understanding cash flows, and assessing growth potential. It’s rooted in reality. Let me also be clear. I am not a hater of Crypto. In fact, I believe in the transformative power of Bitcoin, blockchain technology, and many other things in the crypto world (but that is a post for another day).

Gambling, on the other hand, is about luck. It’s a game where the odds are stacked against you.

And here’s the kicker: the creators of these coins know this. They capitalize on the hype. They dangle the carrot of “easy money” in front of you. They play to your emotions—your greed, your FOMO, your desire to get rich quickly.

But here’s the truth: The people who make the most money are the ones selling you the dream.

The creators cash out. The speculators get burned.

What Happens Next?

You might be wondering: what happens to Fartcoin and coins like it?

The answer is predictable. Eventually, the bubble bursts. It always does.

• Some investors will lose everything.
• Others will learn hard lessons about risk and speculation.
• The hype will fade, and people will move on to the next shiny object.

This cycle repeats itself over and over.

Remember Dogecoin? It was launched as a joke. Yet at its peak, its market cap exceeded $88 billion. Then it was a fraction of what it was. Thanks to Elon, Doge is back up again but still way down from its peak.  Investors who jumped in at the top lost fortunes.

The same will happen with Fartcoin. It’s not if—it’s when.

Why Investors Fall for This

You might wonder: why do smart people fall for such absurd investments?

The answer lies in human behaviour.

• Greed: The promise of quick riches is hard to resist. Everyone wants to believe they’ve found the next big thing.
• Herd Mentality: When everyone is talking about an asset, people assume there must be something to it. “If others are buying, I should too.”
• Overconfidence: Investors often think they’re smarter than the market. They believe they’ll get out before the bubble bursts.
• Lack of Understanding: Many investors don’t understand what they’re buying. They see numbers and hype, but they don’t ask the critical questions.

These behaviours drive speculative frenzies like Fartcoin.

What Real Investors Should Focus On:

If you’re serious about building wealth, stop chasing shiny objects.

Here’s what real investors do:

• They focus on fundamentals.
• They invest in businesses with real value—companies that generate profits, solve problems, and grow over time.
• They think long term. Wealth isn’t built overnight. It’s built through patience, discipline, and smart decisions.
• They avoid speculation. They understand that gambling is not a strategy.

The next time you see a headline about a coin like Fartcoin, ask yourself: Does this make sense?

Would you put your hard-earned money into something with no real value? Or would you rather invest in businesses and assets that stand the test of time?