Crypto-celebrities: Bright launches, dizzying falls

These last few days, a new trend has emerged among celebrities: the launch of their own cryptocurrency tokens. Caitlyn Jenner, Rich The Kid, Iggy Azalea, Davido, and Trippie Redd have all ventured into this journey. However, these tokens quickly saw their prices collapse, causing significant losses for many traders. A series of resounding failures that speak volumes about the dangers of impulsive investments in the volatile world of cryptocurrencies.

Crypto, Dizzying Rises and Falls

Last Sunday, Caitlyn Jenner launched her crypto on the Solana blockchain. The very next day, rapper Rich The Kid deployed his own token, RICH, highlights Unchained Crypto. On Tuesday, it was Australian rapper Iggy Azalea’s turn with her token MOTHER. On Wednesday, Nigerian singer Davido introduced DAVIDO via Pump.Fun, followed by rockstar Trippie Redd who published the contract address for his token BANDO on Solana. Caitlyn, never short on surprises, also launched a second crypto Jenner on Ethereum.

These tokens followed a similar pattern: a rapid increase in their value followed by a sharp drop. In just 24 hours, Azalea’s MOTHER lost 41%, Rich The Kid’s RICH fell by 52%, and Jenner’s Solana crypto plummeted by 67%. Despite a transaction volume of $22.73 million, Trippie Redd’s BANDO was trading at $0.00020, well below its launch price of $0.00047. Even Jenner’s Ethereum crypto, after a peak on Thursday, lost nearly 70% of its value.

Traders quickly felt the effects of these collapses. Lookonchain revealed that a trader, who previously earned $3.7 million with the memecoin BOME, lost over $133,000 in one day with Jenner’s crypto on Solana. Another victim, investing 1,208 SOL in JENNER, recovered only 423 SOL, suffering a loss of 785 SOL, approximately $133,400.

Crypto, Suspect Activities and Scandals

Suspicions of shady activities around these tokens did not take long to surface. Bubblemaps, an onchain tools platform, identified insider activity on Iggy Azalea’s MOTHER crypto. According to them, insiders bought 20% of the supply before Azalea’s announcement, dumping $2 million. One wallet address even hoarded 12% of the total supply, or 119 million tokens, before quickly selling everything.

Davido’s crypto did not escape controversies. Lookonchain indicated that the deployment address for DAVIDO on Pump.fun spent seven SOL to acquire 203 million tokens, more than 20% of the supply, before reselling them for about $474,400. While Davido was participating in a Twitter space with memecoins trader Ansem, this same address continued dumping its DAVIDO tokens.

Meanwhile, Caitlyn Jenner had to clarify that her Twitter account had not been hacked after initial doubts about the legitimacy of her posts. Later, she promised to donate to Donald Trump’s campaign if her token reached a capitalization of $50 million, affirming her support for “ULTRA MAGA” and the protection of cryptocurrencies.

D-List Celebrities and Dubious Memes

The craze for memes and celebrity cryptos seems inextinguishable, but it is increasingly worrying experts. ZachXBT, a famous blockchain detective, highlighted the scams related to memes supported by D-list celebrities like Davido, often involved in dubious schemes, reports CryptoPotato.

Despite their backgrounds, these personalities continue to attract support each time they launch new projects. This frequently results in “pump-and-dump” schemes, where prices are artificially inflated before collapsing, leaving ordinary investors with considerable losses. ZachXBT reminds us that these celebrities primarily seek easy financial gains, offering minimal effort and value in return.

The recent history of celebrity-launched tokens is a stark reminder of the risks associated with investments in cryptocurrencies promoted by public figures. Behind the glitter of famous names, there often lies a much darker reality, where losses can be as swift as the expected gains. Crypto investors should exercise increased caution and not be blinded by the renown of the promoters of these digital assets.