As Random Celebs Like Caitlyn Jenner Embrace Solana Meme Coins, Early Hoarders Fare Best

As a researcher with extensive experience in the crypto market, I’m keeping a close eye on the recent trend of niche celebrities launching tokens using the Pump Fun application on Solana. While early buyers have made significant profits from these celebrity-backed tokens, the ease of issuance and subsequent profits has sparked criticism and concern within the crypto community.

Once again, it seems the crypto markets are experiencing a frothy period, with niche celebrities jumping on the bandwagon of the trend toward rapidly creating meme coins.

In the past week, American media figure Caitlyn Jenner, along with musicians Iggy Azalea, Trippie Redd, and Davido, have introduced their own tokens through the Pump Fun platform on Solana. This application has gained popularity due to its simplicity in allowing users to create a coin associated with an image.

Early adopter traders have reaped the majority of the profits from these tokens based on blockchain data, as they acquired a significant portion of the supply prior to celebrity endorsements on platforms like X. In certain instances, these early investors realized substantial six-figure gains.

For example, Solana’s blockchain records indicate that a particular address purchased approximately 70% of Redd’s BANDO tokens immediately following their launch on Thursday morning. Subsequently, these tokens were distributed to around 190 other wallet addresses, as revealed by blockchain investigator ZachXBT on platform X.

Nigerian music producer Davido’s DAVIDO token brought substantial returns to its early investors, totaling approximately $470,000 in Solana’s SOl tokens within an 11-hour timeframe. This financial gain stemmed from an initial investment of around $1,000. The discovery was made by examining the token’s deployer, calculating the number of tokens they obtained post-issuance and monitoring their sales during those hours. (Source: Lookonchain)

ZachXBT called out Davido for his involvement in prior fraudulent schemes, including RapDoge, Echoke, and Racksterli, which were later identified as ponzi schemes based on DEXTools data indicating that the prices of these tokens plummeted by over 99% following their promotion.

“In my observation, their primary goal is to amass significant financial gains with minimal input. The sudden appearance of a meme coin advocate without a proven track record or clear investment intent does not contribute positively to the space.”

By Friday morning, there was no response from Davido’s account regarding the clarification requests concerning those allegations on his X profile.

Iggy Azalea’s mother reportedly made approximately $2 million in profits from early token trades, according to data from tracking firm Bubblemaps. In a recent post on social media platform X, Bubblemaps revealed that around one fifth of the initial supply was purchased by a select group of wallets prior to Azalea announcing the token’s existence. However, the token has since dropped by 70% in value since then.

Easy issuance, easy money

Each celebrity-endorsed token, introduced via Solana’s token generator Pump Fun, becomes available on the decentralized exchange Raydium once a specific trading volume threshold is reached.

According to DEXTools data, many tokens reached market capitalizations worth up to $25 million just hours after being issued, resulting in substantial trading volumes totaling tens of millions. Nevertheless, all these tokens have experienced significant price drops exceeding 50% from their peaks, indicating strong selling pressure amidst the excitement.

On Monday, the initial celebrity meme token introduced was Jenner’s JENNER token by Jenner herself. This development left some market analysts puzzled, as doubts arose regarding its authenticity due to previous instances of hacked celebrity accounts.

The X profile managed by Jenner on CoinDesk has persistently endorsed the token, but we at CoinDesk have yet to receive a confirmation from Jenner herself regarding her participation in the token project, despite reaching out to her media representative multiple times.

Although generating tokens isn’t inherently harmful on its own, critics in the crypto market are voicing concerns over the sudden appearance of celebrities in this space, seemingly taking advantage of an accessible environment to make easy profits off unsuspecting fans. This phenomenon is being criticized as having a negative impact on the industry.

Memes are hard work

In conversations with CoinDesk, certain meme coin creators shared that although developing meme tokens might appear to be a lighthearted pastime, it actually entails considerable work to transform them into enduring initiatives capable of earning the trust and loyalty of their communities.

As a crypto investor, I can tell you from experience that meme coins with lasting success require significant dedication. Building the culture, fostering a strong community, and establishing solid fundamentals takes time and effort. If your focus is on more than just hype, as is our approach at Floki, then be prepared for a longer-term commitment to see real results.

As a crypto investor, I’ve noticed that some celebrities hop on the bandwagon of popular cryptocurrencies, capitalizing on the hype to make a quick profit. They may not truly understand the technology or the long-term potential of the asset they’re promoting. Instead, they’re looking to cash in on their followers’ excitement and extract as much value as possible through a pump-and-dump scheme.

However, B opined there’s a way to issue personal branded meme tokens and do it right.

It’s beneficial when famous people enter the crypto world and engage in its activities in a responsible manner. If they are seriously considering launching their own tokens, I would recommend they create social tokens linked to their brand or offerings. This approach allows them to add value for token holders rather than following the current trend of releasing meme coins and retaining a large supply for themselves before quickly selling it to their fans.