- American rapper Cardi B is the latest to hop on the celebrity token craze.
- Concerns are growing over the possibility of a hack on the rapper’s account.
- Most celebrity-backed projects have ended in disappointment.
The crypto 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. This trend has once again made waves in recent months, with numerous celebrities promoting self-styled projects that promise big returns.
However, as has often been the case, the excitement surrounding these projects fizzled out as quickly as they came, with most leaving investors significantly out of pocket. While a relative period of silence had led many to believe the industry was finally catching a break from the cycle, another public figure seems ready to pick up the baton.
Cardi B’s WAP Token: A Hack or a Scam?
The crypto industry is again shaken by a new chapter in the notorious celebrity memecoin saga that has stirred controversy throughout the year. On Tuesday, October 8, hip hop artist Cardi B took to her official X account to promote ‘$WAP’, a cat-themed memecoin named after her hit song.
Cardi’s post featured a brief caption, “Her Name is Cat,” along with a wallet address. The post quickly generated a flurry of activity among her 35.6 million followers, many of whom expressed confusion and raised questions about the authenticity of the promoted token.
While the post has fueled speculation about a potential hack on the rapper’s account, it builds on other cat-themed posts earlier made to the account, suggesting that the recent promotions may have been carefully planned.
However, at the time of writing, Cardi B has made no official comments to clarify the token promotion or address the hack speculation. Regardless, her apparent entry into the trend has reignited concerns about the controversial nature of tokens backed by celebrities.
Quick Success, Quick Fade: The Rise and Fall of Celebrity Memecoins
In recent months, projects linked to popular personalities have gained a reputation as some of the riskiest investment schemes.
In June 2024, over 30 celebrity-backed tokens launched on Solana, promoted by popular names ranging from athletes to entertainment figures. Some of these were Andrew Tate, Caitlyn Jenner, and Soulja Boy, all of who introduced their own tokens.
While most of these initially benefited from the celebrities’ substantial followings and influence, nearly 99% of them eventually suffered severe market corrections.
These ventures’ sharp rise and fall have prompted increased calls for caution across the industry, urging investors to avoid the “pump and dump” schemes that have become a favorite among these figures.
Several notable industry participants have also condemned the celebrity memecoin trend, emphasizing that the lack of real utility in the promoted projects makes them poor investment choices.
On the Flipside
Why This Matters
Celebrity-backed projects have gained notoriety in recent years as often ending in failure and leaving investors at a loss. Whether it’s a hack or a poorly executed launch, the new Cardi B-tied token is likely no different, underscoring the need for investors to exercise caution before engaging with such projects.
Read this article for more about the disturbing trend of celebrities in the industry:
Why Do Celebrities Turn to Crypto? History and Psychology
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Bybit Propels SUI Past $2 with Vast Launchpool Expansion
