Vine Meme Coin Surges as Elon Musk Considers Resurrecting the App

A meme coin launched by a Vine co-founder got off to a lucrative start after Elon Musk suggested the app could soon make a comeback.

On Wednesday, Rus Yusupov, one of the three founders of the now-defunct short video app, announced the launch of $VINE. Within hours, the token’s market cap had surpassed $200 million, and one crypto trader speculated that it could soon reach $500 million.

According to CoinMarketCap, the token is trading at just over 22 cents as of 7 a.m. ET and has a market cap of $231.2 million.

Newsweek Yusupov asked for comment via X, formerly Twitter.

Why it matters

The immediate enthusiasm for the meme coin — characteristically volatile cryptocurrencies with no inherent financial benefit and inspired by cultural trends or famous figures — stems from speculation that Donald Trump’s administration will fuel a boom for the broader crypto market.

Trump’s rhetorical support has led to a recent rally for Bitcoin, the world’s leading cryptocurrency, which has risen around 48 percent since his victory over former Vice President Kamala Harris in the 2024 presidential election.

What you should know

The launch of $VINE follows Elon Musk’s suggestion about the possible return of the app, which was owned by Twitter before it was shut down in early 2017.

“We’re looking into it,” Musk posted on X on Sunday after a user asked whether the app should be brought back following the ban on analog app TikTok.

Musk has previously hinted at a revival of Vine and conducted a poll on X last April in which nearly 70 percent voted in favor. In October 2023, just a few days after the purchase of Twitter, anonymous sources informed Axios that Musk had instructed the company’s engineers to begin work on relaunching the app.

The $VINE token also comes on the heels of Donald and Melania Trump launching their own meme coins, raising ethical and legal objections from those skeptical of a sitting president owning such a volatile and potentially profitable financial asset.

The economic historian and independent cryptocurrency researcher Dr. Garrick Hileman compared such tokens to “musical chairs” in response to the launch of Trump’s meme coin, as these assets were initially traded on a large scale.

Despite his previous skepticism about digital currencies – he described them in 2019 as “very volatile and based on thin air” – Trump marketed himself on the campaign trail as America’s first “crypto president” while blasting former President Joe Biden for his strict regulation blamed the industry.

In July, Trump told the audience at the 2024 Bitcoin conference that during his presidency, regulations governing this area would be “written by people who love your industry.”

Hileman said the current administration’s “pro-crypto stance” would potentially protect the flagship digital currency “from excessive regulation.”

What people say

A prominent crypto trader on X wrote citing Musk’s comments about relaunching Vine: “$VINE will soon be in the headlines everywhere. I think we’ve found the next $1 billion meme. It’s just a matter of time before the story is there.”

Vine co-founder Dom Hofman dismissed the possibility of launching his own competing token, writing:: “I am not and will never be involved in any meme coin.”

Dr. Garrick Hileman Hileman told Newsweek: “I think that the financial desperation felt by many young people in particular is driving the speculative madness not only in meme coins, but also in sports gambling, social media stunts, etc. There is not enough discussion about the underlying causes of this phenomenon.”

Peter McCormack, host of the “What Bitcoin Did” podcast, commented on this Newsweek his skepticism towards all cryptocurrencies, especially meme coins: “Meme coins in particular have no appeal for me. They are more like gambling or a night out in Vegas where the odds are overwhelmingly against losing. I wish those investing in meme coins would instead put their resources into Bitcoin, which offers a meaningful path to financial sovereignty.”

What happens next?

The launch of $VINE was apparently sparked by Musk’s support for reviving the app after TikTok was banned. However, Trump’s recent decision to suspend enforcement of the ban through an executive order calls into question both the app’s return and the meme coin’s continued success.

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