- Thirty celebrity tokens launched on Solana in June 2024.
- The average token value collapsed within a month.
- High-profile endorsements failed to sustain market value.
There is never a dull moment in the crypto space, with the potential to make serious money attracting many. One group is celebrities, which saw the potential in launching their own Solana memecoins.
Celebrities started launching these left and right thanks to just how easy it is to launch a token. Subsequently, crypto investors and fans jumped in, hoping to profit from the hype. However, the excitement quickly turned as these tokens experienced dramatic declines in value.
Celebrity Cryptos on Solana Take a Beating
Solana celebrity tokens are not living up to the hype. Solana developer who goes by Slorg on X (formerly Twitter) highlighted their dismal performance. In June, 30 celebrities launched the tokens on the Solana blockchain. Notable figures included Andrew Tate, Caitlyn Jenner, and Soulja Boy, who introduced their own tokens.
Initially, these tokens benefited from the celebrities’ substantial followings and the hype surrounding their launches. However, this changed very quickly. Within just a month, these tokens faced severe market corrections.
The average decline in their market value was a staggering 94%. Andrew Tate’s token, DADDY, dropped by 73.23%, while Caitlyn Jenner’s JENNER (ETH) and Iggy Azalea’s MOTHER experienced declines of 75% and 78.68%, respectively.
By July 2024, exactly half of these tokens had plummeted over 99% from their all-time highs. This is also reflected in their market cap, with 22 out of the 30 tokens holding less than $1 million.
Why Celebrity Crypto Tokens Collapse
One of the main reasons behind the rapid proliferation of these celebrity-backed tokens is the ease of launching tokens on platforms like Pump.fun. This platform allows users to create and launch tokens with minimal technical expertise. However, this ease of access also means that celebrities with little or no experience in crypto can jump in.
Consequently, the tokens they launch are prone to market manipulation, rug pulls, and more. Third parties, like in the case of Caitlyn Jenner’s token, often exploit both the celebrities and their fans. In her case, a middleman, Sahil Arora, who handled the launch, dumped all the liquidity on the fans. Regarding Andrew Tate’s token, the influencer was accused of letting insiders buy out most of it before he went public. This way, they could buy the tokens cheaply and then dump them on Tate fans.
Even with no clear cases of manipulation, celebrity memecoins have another issue. The lack of utility of these tokens necessarily means that they go up and down solely based on hype. The problem is that the hype has to die down sometime, causing these tokens to crash.
It is possible that celebrity tokens will have some utility and reach greater price stability sometime in the future. However, it seems that the crypto space, at least for celebrity newcomers, has not reached that point yet.
On the Flipside
- Celebrity memecoins hype has a darker side. One influencer that launched its own Solana project ended up in a hospital after a failed stunt to promote it.
- Despite the memecoin trend, some influencers have tried to give real utility to their tokens. For instance, Gary Vee’s VeeFriends NFTs give his fans the right to coach or interact with the celebrity. Still, the tokens are down 96.9% from their all-time high.
Why This Matters
Massive losses mean that investors should be cautious about celebrity tokens. Still, despite the issues, there is potential for celebrity tokens to develop into tools for loyalty programs and exclusive fan engagements in the future.
Read more about why celebrities choose Solana:
How Solana Became the Home of Memecoin Token Launches
Read more about a major institution’s case for Solana:
Franklin Templeton Endorses Solana Again, Praising Tech and Adoption
