As a seasoned researcher with extensive experience in the crypto market, I have witnessed numerous trends come and go, each with its unique characteristics and risks. The recent trend of celebrity meme tokens on the Solana blockchain is no exception.
Last month, celebrity-backed meme tokens made their debut on the Solana blockchain, with a total of 30 new tokens being introduced, as reported in Jupiter Slorg’s latest statistical data. Notable figures such as Andrew Tate and Soulja Boy were among those who joined this trend.
The average decline from peak values is 94% for most tokens. Top-tier tokens experienced losses exceeding 70%. More than half of these tokens suffered value reductions surpassing 99%.
Celebrity Meme Tokens Are Struggling
As an analyst, I’ve conducted a recent analysis on the thirty newly introduced celebrity meme tokens in the market. I found that twenty-two of these tokens have market capitalizations under one million dollars. Despite the substantial losses, some of these tokens continue to show activity due to ongoing conversations about them on Twitter.
Below is a chart of the 30 celebrity tokens launched on Solana in June.
Every single one is down.
Place you bets accordingly.
— Slorg (@SlorgoftheSlugs) July 25, 2024
The trend of meme coins associated with celebrities started in May, with Caitlyn Jenner’s (JENNER) coin, which saw a market capitalization of $40 million just one day after its launch, despite initial doubts. Subsequently, Iggy Azalea, a rapper, introduced her Mother Iggy (MOTHER) token on the Solana blockchain, and it experienced significant growth in value as well.
As an analyst, I’ve noticed that some famous personalities, including rappers Lil Pump and Soulja Boy, as well as online influencers like Andrew Tate, have recently jumped on the bandwagon of meme coins. However, based on historical market trends, my observation is that the involvement of celebrities in the crypto world can sometimes indicate a market peak. This theory holds weight given the recent decrease in trading volumes and dramatic price drops we’ve seen with meme coins.
Based on information from CryptoQuant, the influence of meme coins within the altcoin sector has noticeably dwindled since mid-May, further declining in June.
Meme Coins Are the Latest Trend with Influencers
Meme coins linked to celebrities have gained popularity as the newest fad in crypto investments influenced by famous figures. Nevertheless, past cryptocurrency market booms reveal concerns such as retail manipulation and fraudulent activities associated with these projects, emphasizing the challenges of regulating celebrity endorsements in the crypto sphere.
During every bull market in cryptocurrencies, famous personalities jump on the bandwagon of the newest crypto trend. In the year 2017, numerous tokens received promotion through celebrity-backed initial coin offerings (ICOs) by individuals like Paris Hilton, Floyd Mayweather, and Jamie Foxx. The vast majority of these ICOs ended in failure, with research suggesting that over 80% were actually scams. Celebrities involved usually only faced fines for supporting deceitful initiatives.
In the 2021-2022 cryptocurrency market surge, the limelight moved towards non-fungible tokens (NFTs) and the metaverse. Notable figures such as Jake Paul, DJ Khaled, David Dobrik, and even ex-President Donald Trump endorsed several NFT projects, some of which unfortunately turned out to be fraudulent schemes.
In 2024, the focus moved towards meme coins that gained traction among influencers prior to mainstream recognition. Tokens with misspelled names like TREMP for Doland and BODEN for Joe have likewise piqued interest and made it onto centralized exchanges.
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2024-07-25 21:44