Guys, there’s this crazy thing everyone knows about, but hardly anyone realizes just how messed up it really is.
Let’s dive into the latest crypto drama – celebrity meme coins. It seems like every big name thought they could drop their own token, but spoiler alert:
they all tanked harder than a lead balloon.
The Rapper Fiasco
Rappers like Rich The Kid and Trippie Red thought they could cash in with their tokens, $RICH and $BANDO. Reality check – both coins are almost worthless now. Rich The Kid’s token plummeted to a market cap of just $61,000, losing more than 90% of its value. Trippie Red’s coin didn’t fare any better, becoming yet another cautionary tale in the crypto space.
$BANDO&$RICH rug pull
Sydney Sweeney’s Meme Coin Saga
One of the earliest celeb meme coins came from Sydney Sweeney. For the first few days, as the coin’s value was climbing, Sweeney was all over Twitter promoting it. But as soon as the developers unloaded their holdings and the price tanked, she quickly scrubbed all those promotional tweets. Talk about a swift exit!
Sydney Saga
Celebrity Meme Coins in May
By the end of May, celebs like Iggy Azalea, Caitlyn Jenner, rapper Lil Pump, and online influencers like Andrew Tate had jumped on the meme coin bandwagon as these tokens hit peak popularity. Iggy Azalea launched her meme coin Mother Iggy (MOTHER) on the Solana blockchain following the initial success of Jenner’s token. The value of MOTHER soared within weeks. However, over the past week, the price has significantly dropped amid ongoing market turmoil.
https://preview.redd.it/kqlgnww5obgd1.png?width=936&format=png&auto=webp&s=f82370aa78d10d9b7b8dafd33e61ddbee4100bb7
The Arora Scandal
Sahil Arora, the alleged mastermind behind many of these celebrity tokens, promised quick riches but delivered disasters. He reportedly scammed celebs like Jenner and Derulo, launching tokens without their full knowledge and then dumping his holdings to crash the prices. Jenner and Derulo even publicly denounced him, claiming they were scammed. Despite Arora’s slick talk and big promises, his involvement often spelled doom for these tokens.
scamrora
Tokens were launched on the meme coin creation platform pump. fun. Jenner and Derulo claimed that the alleged serial scammer and famous meme coin promoter Sahil Arora helped create their tokens, Caitlyn Jenner (JENNER) and Jason Derulo (JASON).
A list of celebs and the rates Sahil said he could hook up for promos.
Crypto analytics firm Bubblemaps claims that every single one of these tokens, including Azalea’s Mother Iggy (MOTHER), which wasn’t part of the Arora scam, saw some serious insider activity at launch. Some wallets were raking in millions of dollars. Basically, it was a classic pump and dump scenario, with a few folks making bank while everyone else got left holding the bag.
Info from Bubblemaps
Buterin’s Critique
Even Vitalik Buterin, co-founder of Ethereum, chimed in on the celebrity token craze, calling out their lack of substance and real-world value. He praised projects with a clear purpose, like Ashton Kutcher and Mila Kunis’ Stoner Cats, which funded an actual show. In contrast, he slammed the 2024 celebrity meme coin trend for being nothing more than cash grabs with no lasting impact.
Vitalik slam celebrity memecoins
The Ridiculousness of Jeo Boden and Danold Tromp
In a bizarre twist, some poorly drawn meme coins like “Jeo Boden” (a parody of Joe Biden) and “Danold Tromp” (Donald Trump) saw crazy gains initially but then plummeted just as fast. These tokens had no real roadmap or utility, relying purely on hype and novelty. One trader claimed to turn $260 into $42,000 with “Jeo Boden,” only to see it crash later. It’s a wild west out there, folks.
One investor claims to have turned $260 into $46,000.
SEC on the Hunt
The SEC is starting to eye these celebrity-endorsed tokens, which could spell legal trouble for the stars involved. If these tokens are deemed securities, the celebs could face hefty fines and penalties. It’s not just about losing money; it could mean serious legal headaches too.
In October 2023, SEC Chair Gary Gensler appeared in a video warning about celebrity-endorsed crypto tokens.
The Big Takeaway
What’s the moral of the story? Just because a celeb backs a coin doesn’t mean it’s a good investment. Most of these projects are all hype with no real substance. If you’re thinking about investing in the next big celeb coin, remember this: they’re probably just looking for a quick buck, and you might end up holding a bag of worthless tokens.
Stay smart, do your research, and don’t fall for the hype.
Stay savvy!
