Behavioral finance meets cultural storytelling : understanding speculative investment in memecoins

Abstract

This thesis investigates the psychological, cultural, and marketing-driven factors that shape speculative investment in memecoins, a class of cryptocurrencies that derive value primarily from online virality rather than technological fundamentals. Integrating behavioral finance, memetic narratives, and digital marketing concepts, the study examines how cognitive biases such as fear of missing out, herd behavior, loss aversion, and overconfidence influence investor decisions, and how meme-based cultural symbolism and community belonging contribute to perceived value. The thesis also evaluates the role of influencer activity and viral promotional content in accelerating attention cycles that drive short-term market movements. The empirical analysis is based on a quantitative survey of 224 participants and includes group comparisons, correlation analysis, and both linear and logistic regression models. Results show that fear of missing out and overconfidence significantly predict investment and higher portfolio allocation, while community engagement increases perceived value but does not independently predict investment once biases are considered. Influencer-driven marketing and viral content strongly amplify speculative momentum. Overall, the study demonstrates that memecoin adoption emerges from the combined impact of cognitive heuristics, cultural narratives, and digital hype, offering insights relevant to behavioral finance research, cryptocurrency marketing practice, and consumer protection policy.