- American rapper Cardi B is the latest to join the celebrity token craze.
- Concerns are growing about the possibility of rapper accounts being hacked.
- Most celebrity-backed projects have ended disappointingly.
The cryptocurrency industry is no stranger to the infamous trend of celebrity-backed token schemes, where influential figures leverage their fame and market buzz for quick profits. The trend has made waves once again in recent months, with numerous celebrities promoting self-titled projects promising big returns.
But as is often the case, the excitement surrounding these projects faded as quickly as they took off, leaving most investors without significant funding. While a period of relative silence has led many to believe that the industry is finally breaking out of its vicious cycle, it seems another public figure is ready to take the reins.
Cardi B’s WAP Token: Hack or Scam?
The cryptocurrency industry has once again been rocked by a new chapter in the infamous celebrity memecoin saga that has been causing controversy all year. On Tuesday, October 8th, hip-hop artist Cardi B took to her official X account to promote ‘$WAP’, a cat-themed meme coin named after her hit song.
Cardi’s post included a short caption, “Her name is Cat,” along with her wallet address. The post quickly sparked a flurry of activity among her 35.6 million followers, many of whom expressed confusion and questioned the authenticity of the promoted tokens.
The post sparked speculation about a potential hack of the rapper’s account, but it builds on other cat-themed posts previously posted on the account, suggesting the latest promotion may have been carefully planned.
However, as of this writing, Cardi B has not made any official comments to clarify the token promotion or address the hacking speculations. Nonetheless, her apparent entry into this trend has reignited concerns about the controversial nature of celebrity-sponsored tokens.
Quick success, fast fade: The rise and fall of celebrity memecoins
In recent months, projects involving celebrities have gained a reputation as one of the riskiest investment schemes.
In June 2024, over 30 celebrity-backed tokens were launched on Solana and promoted by celebrities ranging from athletes to celebrities. Some of these were Andrew Tate, Caitlyn Jenner and Soulja Boy, all of whom introduced their own tokens.
Most of these initially benefited from the celebrity’s significant following and influence, but nearly 99% eventually suffered a severe market correction.
The rapid rise and fall of these ventures has increased calls for caution across the industry, urging investors to avoid the “pump and dump” schemes that these numbers favor.
Several notable industry insiders have also criticized the celebrity memecoin trend, emphasizing that the projects being pursued lack practical utility, making them poor investment choices.
On the flip side
Why This Matters
Celebrity-backed projects have gained notoriety in recent years for often failing and resulting in losses for investors. Whether it’s a hack or a poorly executed launch, the new Cardi B-linked token is likely to be no different, which highlights the need for investors to exercise caution before getting involved in such projects.
To learn more about the disturbing trend among industry celebrities, read the following article:
Why are celebrities turning to cryptocurrencies? History and Psychology
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