Crypto analyst Slorg unveiled sobering insights on the fate of celebrity meme coins. Over 30 celebrities, including Andrew Tate and Iggy Azalea, launched their tokens on the Solana blockchain last month.
Yet, they have seen a staggering average decline of 94%.
Celebrity Meme Coins in Hot Water
The trend even caught the attention of Ethereum co-founder Vitalik Buterin, who voiced his displeasure last month. He lamented that these tokens lack substantial value and contribute little to meaningful causes. Buterin’s concerns highlight the frivolous nature of these investments, which seem to thrive solely on initial hype.
“I’m feeling quite unhappy about this cycle’s celebrity experimentation,” Buterin wrote.
Despite their high-profile endorsements, the reality for these meme coins has been grim. Andrew Tate’s DADDY meme coin, which performed the best, still plummeted by over 73%. This sharp decline is symptomatic of the broader market downturn, affecting all 30 coins.
Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024
Moreover, promises made at the inception of these tokens have largely gone unmet. For instance, Tate has been markedly silent about the anticipated whitepaper for his The Real World (TRW) token, and DADDY token’s associated airdrop. As July ends, these developments have yet to materialize.
Engagement with these coins varies significantly among celebrities. Waka Flocka continues to actively promote his token, despite a 99.7% drop from its peak and a market cap now below $400,000. Conversely, other celebrities seem to have quietly retreated from their earlier promotions, possibly foreseeing further declines.
Additionally, Slorg explored the lasting impact of such investments.
“It is unknown where these tokens will be in a year from now. The numbers don’t look good, but to be fair this is true of all tokens. Web3 is a fickle beast, and even earnest attempts aren’t always met with success, but this doesn’t excuse the blatant pump and dumps,” Slorg said.
The allure of meme coins has reached even global sports icons. Lionel Messi, for instance, promoted the WATER token on his Instagram. Since his Instagram story, the token’s value has fallen by more than 85%.
Read more: Crypto Scam Projects: How To Spot Fake Tokens
There were early red flags with some of the celebrity meme coins. For instance, on-chain analysis soon after the launch of most tokens indicated potential insider activities and warned of possible pump-and-dump schemes. Yet, many investors ignore the warning, aiming to ride the celebrity hype.
“The ways in which to protect investors from drastic price depreciation in the celebrity meme coin market begins with requiring projects to be fully transparent about the nature of celebrity endorsements. Meme coin projects should be transparent with their team, operations and financials. Regulators should ensure that projects are transparent about endorsements and the Securities and Exchange Commission should take action against fraudulent projects,” Tilted Co-Founder Sarah Austin told BeInCrypto.
Miles Deutscher, another analyst, weighed in on the phenomenon. He acknowledged the significant role of celebrity influence in attracting newcomers to the crypto market.
“Celebrities (love or hate them) clearly command one thing: Attention. And this attention is vital for the health of the crypto economy. With much of this attention being directed to meme coins, this sector is the standout beneficiary. However, this comes with a trade-off – as not all attention is created equal,” Deutscher said.
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