- 30 celebrity tokens were launched on Solana in June 2024.
- The average token value plummeted within a month.
- Celebrity endorsements have failed to sustain market value.
There is never a dull moment in the crypto space, and the potential to make huge amounts of money is there to attract many people. One group, a celebrity, saw the potential in launching their own Solana Memecoin.
Celebrities started to launch tokens left and right because of how easy it was to do so. Then, crypto investors and fans jumped in, hoping to profit from the hype. However, the excitement quickly turned when the value of these tokens plummeted.
Solana’s Celebrity Crypto Takes a Hit
Solana celebrity tokens are not living up to the hype. A Solana developer who goes by the name Slorg on X (formerly Twitter) has highlighted their dismal performance. In June, 30 celebrities launched tokens on the Solana blockchain. Notable ones include Andrew Tate, Caitlyn Jenner, and Soulja Boy, who has introduced his own token.
Initially, the token benefited from the huge celebrity following and hype surrounding its launch. However, this changed very quickly. In just one month, the token faced a severe market correction.
The average decline in market value was a whopping 94%. Andrew Tate’s token DADDY fell 73.23%, while Caitlyn Jenner’s JENNER (ETH) and Iggy Azalea’s MOTHER fell 75% and 78.68%, respectively.
By July 2024, exactly half of these tokens had fallen by more than 99% from their all-time highs. This is also reflected in their market caps, with 22 of the 30 tokens holding less than $1 million.
Why Celebrity Crypto Tokens Are Crashing
One of the main reasons celebrity-backed tokens are spreading so quickly is the ease of launching tokens on platforms like Pump.fun, which allow users to create and launch tokens with minimal technical expertise. However, this ease of access also means that celebrities with little or no experience with cryptocurrencies can jump in.
As a result, the tokens they launch are vulnerable to market manipulation, embezzlement, etc. Third parties, such as Caitlyn Jenner’s token, often take advantage of both celebrities and fans. In her case, the broker who handled the launch, Sahil Arora, dumped all the liquidity on fans. In the case of Andrew Tate’s token, the influencer was accused of having insiders buy most of it before the listing. In this way, they were able to buy the tokens cheaply and dump them on Tate’s fans.
Despite the lack of clear evidence of manipulation, the celebrity meme coin has another problem. The utility of this token is lacking, so it fluctuates based on hype. The problem is that the hype will eventually die down, which will cause the token to crash.
It is possible that celebrity tokens will gain some utility and eventually reach greater price stability, but the crypto space doesn’t seem to have reached that point yet, at least for celebrity newcomers.
On the other side
- Celebrity Mimecoin craze is on the rise The dark side. An influencer who started the Solana project ended up in the hospital after failing to promote it.
- Despite the mimecoin trend, some influencers have tried to give tokens real-world utility. For example, Gary Vee’s VeeFriends NFT gives fans the power to guide or interact with celebrities. Still, the tokens 96.9% decrease At an all-time high.
Why this matters
The massive losses mean investors should be cautious about celebrity tokens. However, despite these issues, there is potential for celebrity tokens to evolve into a tool for loyalty programs and exclusive fan engagement in the future.
Learn more about why celebrities choose Solana:
Why Solana Became the Home for the Memecoin Token Launch
Learn more about the key institutional cases against Solana.
Franklin Templeton Renews Support for Solana, Praises Technology and Adoption