- Crypto analyst Slorg has recently shed light on the fate of meme coins backed by celebrities.
- Over 30 celebrities, including Andrew Tate and Iggy Azalea, launched their tokens on the Solana Blockchain last month.
- These altcoin prices have experienced a staggering average decline of 94%.
Discover the real story behind celebrity meme coins and their volatile performance in the crypto market.
High-Profile Endorsements and Harsh Realities
The recent trend of celebrities endorsing meme coins has not gone unnoticed, drawing even the attention of Ethereum co-founder Vitalik Buterin. Last month, Buterin expressed his dissatisfaction with these tokens, noting their lack of substantial value and meaningful purpose. His concerns highlight the inherently superficial nature of these investments, which flourish purely on initial hype.
Market Performance: A Brutal Decline
Despite their high-profile endorsements, meme coins have faced brutal realities in the market. Andrew Tate’s DADDY meme coin, for instance, has plummeted by over 73%. This sharp decline is indicative of a broader market downturn affecting all 30 altcoin projects launched by celebrities.
Broken Promises and Unfulfilled Expectations
Promises made at the inception of these tokens have largely gone unfulfilled. Andrew Tate, for example, has remained conspicuously silent regarding the expected whitepaper for The Real World (TRW) token and the related airdrop for the DADDY token. As of the end of July, these developments have yet to materialize. The level of engagement and promotion by celebrities varies significantly, with some like Waka Flocka continuing to promote their tokens despite a 99.7% drop in value and a market cap falling below $400,000. Others, anticipating further declines, have quietly withdrawn from their initial promotions.
Future Outlook: Uncertainty Prevails
Analyst Slorg has delved into the lasting impact of these investments, stating that the future of these tokens remains uncertain. “It’s hard to predict where these tokens will be a year from now. The figures don’t look promising, and while this is a universal truth for all tokens, it doesn’t excuse the obvious ‘pump and dump’ schemes,” Slorg explained. Such realities underscore the unpredictability of Web3 and the often fleeting success of even serious projects.
Alarming Signals and Early Red Flags
The allure of meme coins has even captivated global sports icons. Lionel Messi, for instance, promoted the WATER token on his Instagram, only for its value to drop by over 85% since his story. Early red flags were evident in some celebrity-endorsed meme coin projects. On-chain analysis soon after their launch indicated potential insider trading activities, with experts warning against possible pump-and-dump schemes. Nonetheless, many investors, driven by celebrity excitement, ignored these warnings.
Influence and Its Consequences
Analyst Miles Deutscher also commented on this phenomenon, acknowledging that celebrities play a vital role in attracting newcomers to the crypto market. “Celebrities undeniably command attention. And while this attention is crucial for the health of the crypto economy, especially for meme coins, it comes with its trade-offs,” Deutscher warned.
Conclusion
The saga of celebrity-endorsed meme coins serves as a cautionary tale for investors. While such endorsements can drive initial interest, the underlying value and sustainability of these tokens remain questionable. As the broader crypto market continues to evolve, it remains to be seen how these meme coins will fare in the long run. Investors are advised to exercise caution and conduct thorough research before diving into such high-risk ventures.
