Celebrity meme coins, which were all the rage on the Solana blockchain last month, have taken a massive hit in terms of value. According to recent data analysis by Jupiter Slorg, these tokens have plummeted by an average of 94% from their peak values. Even the top-performing tokens are still experiencing losses of over 70%, with half of them seeing their values drop by more than 99%.
Out of the 30 celebrity meme tokens that were launched, 22 of them now have market capitalizations below $1 million. Despite these significant losses, some of these tokens are still considered ‘active’ due to ongoing discussions on Twitter. It seems that the initial hype surrounding these tokens has died down, leaving many investors with heavy losses.
The trend of celebrity meme coins started with Caitlyn Jenner’s (JENNER) meme coin back in May, which quickly gained a market cap of $40 million within 24 hours. Following this success, rapper Iggy Azalea introduced her Mother Iggy (MOTHER) token on the Solana blockchain, which also saw a surge in value.
However, as history has shown us, the involvement of celebrities in the crypto space often signals a market peak. This can be seen in the recent decline in meme coin trading volumes and the sharp drop in prices. CryptoQuant data indicates that meme coin dominance in the altcoin market has been steadily decreasing since mid-May, continuing to fall throughout June.
The emergence of celebrity meme coins is just the latest trend in influencer-driven crypto assets. In previous bull cycles, projects like these have been plagued by accusations of retail dumping and scams, highlighting the challenges that come with influencer involvement in the crypto market.
This isn’t the first time we’ve seen celebrities jump on the crypto bandwagon. In 2017, many tokens were promoted through celebrity-endorsed ICOs, with a majority of them turning out to be scams. Similarly, during the 2021-2022 bull run, the focus shifted to NFTs and the metaverse, with celebrities like Jake Paul and DJ Khaled promoting various projects that later turned out to be fraudulent.
Now, in 2024, the spotlight is on meme coins created by influencers, with tokens like Doland Tremp (TREMP) and Joe Boden (BODEN) gaining attention and even being listed on centralized exchanges. It’s clear that celebrity involvement in the crypto market comes with its own set of risks and challenges, and investors should proceed with caution when considering these projects.