Recently, the crypto community has been experiencing a wave of craze around new celebrity-backed memecoins. The Solana-based tokens have recorded massive gains but in most cases have turned into scams.
Almost two months later, the prices of most of these tokens have fallen significantly from their all-time highs. However, the community of MOTHER, one of the best-performing memecoins, has defended its cryptocurrency against criticism.
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The Rise of Solana-Based Celebrity Memecoins
In late May, Olympic champion and reality TV star Caitlyn Jenner launched her own Solana-based token, JENNER. The news took the crypto community by surprise, who initially suspected the gold medalist had been hacked.
Jenner was later joined by rapper Rich the Kid and his cryptocurrency Rich. Both cryptocurrencies were met with skepticism by the community and were immediately investigated.
Users quickly pointed out that the curator of memecoins was a “crypto influencer” named Sahil Arora. Arora was known as an alleged serial scammer who had previously launched several tokens, including the influential memecoins.
According to reports, these tokens led to a scam that cost most investors their lives. Jenner initially confirmed working with the alleged scammer but eventually cut all ties.
Following Jenner, several other celebrities have launched tokens with the help of Arora, including Lil Pump, Davido, Trippie Redd, and Money Bag U. Australian rapper Iggy Azalea has also been linked to Arora’s scam while launching her MOTHER token.
Despite these accusations, Azalea assured her followers that she had joined the cryptocurrency community and launched MOTHER to stop Arora’s attempts to use her image to scam people.
Since then, the industry has seen the launch of several celebrity tokens, some linked to Arora and some hacked. The list includes the likes of Metallica, Andrew Tate, Hulk Hogan, 50 Cent, and more.
Several celebrity tokens launched in the past two months have seen massive price increases. JENNER saw a 51,000% surge to an all-time high, while MOTHER surged 5,552%.
Fall of celebrity icons
Online Reports open The prices of 30 popular Solana meme coins launched since May have fallen by an average of 94%. According to Web3 Slorg Strategy, even the best-performing meme coins are “down more than 70%” from their record prices.
Andrew Tate-inspired DADDY was crowned the smallest loser among the tokens, down 73.2%. Meanwhile, JENNER and MOTHER followed closely behind with declines of 75% and 78.7%.
Just one month into the life of these coins, “exactly half of them have dropped by more than 99%, while seven others have dropped by more than 90%.” Additionally, 22 of the 30 cryptocurrencies have a market cap of less than $1 million, and only four have a market cap of more than $10 million.
While most tokens have been abandoned, some celebrities still endorse their tokens, occasionally posting about them. But with “only 40% tweeting about the token at least once in the past week, most have followed the same path of initial pumping, then nothing.”
Some community members called the celebrity meta “pure exploitation, farming engagement for their fan base.” However, the MOTHER community defended the token following the report.
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User X advertiser “Iggy should be included in this group” because she “seems to be working hard, hasn’t sold a single token, and spends hours communicating with coin holders.” Another user called the MOTHER launch “an example of what we would expect from a celebrity.” Confirmed That the symbol “would be a great blueprint to follow.”
As of this writing, MOTHER has seen a 23.1% drop in the last 24 hours, trading at $0.059. However, its current price represents a 103.6% increase on the weekly timeframe.
Featured image from Wikipedia.com, chart from TradingView.com