As a seasoned financial analyst with over a decade of experience in the crypto market, I have witnessed numerous trends come and go. The recent surge of celebrity-endorsed Solana-based memecoins was an intriguing development that caught my attention. Initially, the skepticism within the community was palpable, especially when it came to tokens like JENNER and RICH, which were linked to alleged scammer Sahil Arora.
Lately, there’s been a wave of excitement within the crypto sphere as new meme coins endorsed by celebrities have emerged. Many of these tokens, built on the Solana blockchain, experienced significant price increases. However, unfortunately, most turned out to be pump-and-dump schemes.
Approximately two months have passed, and the value of most cryptocurrency tokens has dropped substantially since their peak days. In stark contrast, the MOTHER community, known for its successful meme-based cryptocurrencies, stood up for their chosen asset in the face of criticism.
The Rise Of Solana-Based Celebrity Memecoins
Around the last week of May, renowned Olympic champion and reality television personality Caitlyn Jenner introduced her Solana-backed JENNER token to the public. This announcement took the cryptocurrency world by surprise, with some initially assuming that the gold medalist had fallen victim to a hacking incident.
Later on, Jenner was accompanied by rapper Rich The Kid and his RICH token. These memecoins sparked skepticism within the community upon introduction, prompting immediate scrutiny from members.
It was brought up by users that the mastermind behind the memecoins was identified as crypto influencer Sahil Arora. Arora had a questionable reputation due to past allegations of scamming activities. He had previously introduced several tokens into the market, including those themed around influencers.
According to the findings, these questionable assets were involved in a pump-and-dump scheme, causing significant losses for many investors. Initially, Jenner acknowledged collaborating with the suspected individual behind this scam, but later severed all connections.
Following Jenner’s lead, several other famous personalities collaborated with Arora to introduce their own tokens. Notable figures among them were Lil Pump, Davido, Trippie Redd, and MoneyBagg Yo. Australian rapper Iggy Azalea was rumored to have been involved in Arora’s scam during the launch of her Mother Iggy (MOTHER) token.
In spite of the accusations leveled against her, Azalee reassured her fan base that her entry into the cryptocurrency world and the creation of MOTHER were proactive measures aimed at thwarting Arora’s plans to misuse her image for fraudulent activities.
After that point, there have been numerous celebrity-backed token introductions in the industry, with some reportedly associated with Arora and others alleged to be hacks. Notable figures on this list include Metallica, Andrew Tate, Hulk Hogan, 50 Cent, among others.
I’ve analyzed the market trends of the past two months and noticed remarkable price jumps for several celebrity-backed tokens. For instance, JENNER experienced an astonishing 51,000% surge, reaching its all-time high (ATH). Similarly, MOTHER recorded a significant increase of 5,552%.
The Fall Of Celebrity Tokens
Recent online reports indicate a significant decline for the 30 Solana memecoins launched since May, with an average drop of approximately 94%. As per Web3 strategist Slorg’s assessment, even the most successful celebrity tokens have experienced price decreases exceeding 70% compared to their all-time highs.
According to its Andrew Tate-inspired moniker, Daddy humbly claims the title of having the smallest loss among the tokens, amounting to a substantial decrease of 73.2%. In comparison, Jenner and Mother are not far behind with reductions of 75% and 78.7%, respectively.
After just a month of existence, roughly half of the tokens have lost over 99% of their value, with an additional 7 tokens losing more than 90%. Moreover, about 73% of these tokens have a market capitalization under $1 million, and only 13% have a market cap above $10 million.
Many tokens have been forsaken by their holders, but a few celebrities persist in promoting them, intermittently sharing updates. However, approximately 40% of individuals have tweeted about the token at least once in the past week. The majority appear to have followed a typical pattern: an initial surge in interest, followed by a sudden decline with no further activity.
Some individuals within the community criticized the use of the meta token by the celebrity as blatant exploitation and a means to manipulate their fanbase for engagement. In contrast, supporters from the MOTHER community rallied behind the token following the report.
An X user stated that “Iggy should be included in this group” as she seems to be “working her ass off, hasn’t sold a single token, spends hours communicating with holders.” Another user considers MOTHER’s launch “an example of what we would hope for from a celebrity.” They asserted that the token “would be a great blueprint to follow.”
At present, MOTHER has experienced a decrease of 23.1% within the past 24 hours, with its current value being $0.059. Notably, this price level signifies a rise of 103.6% compared to the previous week.
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2024-07-26 09:41