As the cryptocurrency market looks for new ways to drive growth, the emergence of celebrity-backed token projects has sparked a trend that has drawn mixed reactions from seasoned crypto enthusiasts to the new wave of memecoins.
Some argue that celebrity tokens can attract new users to cryptocurrencies, while others believe that the speculative nature of the tokens could mislead consumers about the true value of the blockchain.
Celebrity MemeCoins can help you attract new users.
Proponents of celebrity tokens see them as an effective entryway into cryptocurrency. Solo Ceesay, co-founder and CEO of social wallet Calaxy, believes these tokens can make cryptocurrency more accessible to more people. Ceesay said:
“I think celebrity tokens could be very valuable in this space, similar to regular memecoins, because they serve as the simplest on-ramp to crypto for most consumers.”
Ceesay argued that leveraging the likeness of well-known figures was easier to attract new users than complex propositions about the potential of Web3.
Ceesay is optimistic about the future of celebrity tokens, suggesting they could develop into a significant asset class. “Over time, we expect popular coins to solidify as a meaningful asset class if true strategies and use cases are deployed,” he added.
Meanwhile, a KuCoin representative told Cointelegraph that while celebrity tokens could play a role in user onboarding, investors should still be cautious. They explained:
“Celebrity tokens often have a low entry point and can serve as a gateway to crypto for new users. However, the trade-off between hype and utility can lead to potential pitfalls.”
Representatives also emphasized that, as with all forms of investing, KuCoin encourages investors to “DYOR,” or “do your own research,” as it is commonly used in the cryptocurrency community. The KuCoin team also stated that it has maintained a neutral stance on meme tokens. .
Related: Celebrity Mimecoin highlights influential issues in cryptocurrency.
Risks and skepticism surrounding celebrity-led cryptocurrencies
In contrast, Matt Wright, CEO of decentralized artificial intelligence (AI) company GaiaNet, criticizes this trend and sees it as detrimental to the cryptocurrency space. Wright explained:
“It’s bad for the space because people think it’s cryptocurrency, but it’s just influencer marketing attached to the economy.”
He argued that the hype surrounding celebrity tokens obscures the true potential of blockchain technology. Wright warns that these tokens are unsustainable unless they provide significant utility and innovation. He also compared this trend to the non-fungible token (NFT) craze, where many projects lack substance.
The speculative nature of celebrity tokens has also raised concerns about their long-term viability. Andreas Brekken, CEO and founder of trading platform SideShift.ai, has been particularly vocal in his criticism. He argued:
“Temporary celebrities are recruiting thousands of people to set up pump-and-dump schemes to squeeze every last penny out of their already worthless reputations.”
He predicted that the future of most celebrity tokens would be bleak, claiming that “they will all be gone in a matter of days, maybe even months.”
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