A 30,000% surge overnight: The charm and bubble of "celebrity coins"
Recently, a report titled "A 30,000% increase overnight, did American celebrity Katherine Jenner launch a Trump-themed MEME coin?" was first published on Followin, which attracted widespread attention in the market.
Caitlyn Jenner, an Olympic champion, actress, member of the Kardashian family, transgender, Trump's number one fan, and also a supporter of Solana Summer, has 3.36 million fans on the X platform. With so many labels, JENNER coin has become the focus of the market as soon as it was launched.
The rise of the concept of "celebrity currency"
With Jenner’s JENNER coin becoming an instant hit, the concept of celebrity coins quickly became a hot topic in the cryptocurrency circle.
On the 28th, Iggy Azalea, a well-known American rapper, the ex-girlfriend of NBA star Nick Young, and a social celebrity, released her token Mother, which became popular for a while. She has 7.63 million followers on the X platform, which has quickly attracted a lot of attention to the Mother coin. Well-known projects such as Little Fox Wallet and Phantom Wallet have also interacted with Iggy Azalea.
In a Space live broadcast on the 29th, the number of simultaneous online listeners was close to 20,000.
On the 30th, Davido, the rapper king with 15.34 million fans on the X platform, also issued his own token.
Faced with the strong entry of these Web2 celebrities, practitioners in the encryption industry have expressed excitement, believing that super traffic masters will bring about large-scale application of cryptocurrency.
Market crash: Celebrity coin's "Christmas tree" market
However, the glory of Celebrity Coin lasted only 3 minutes, and it plummeted within 24 hours, "cutting" the enthusiastic investors to pieces. Many people lamented that it would be better to invest in Zoo MEME Coin.
Davido: The epitome of Christmas tree quotes
Of course, he was full of enthusiasm and waved the flag for Solana Summer, asking fans to hold it and wait for the market value of 30 million.
The results of it? It opened sharply, from 0.000065 to 0.01, and then plummeted, currently at 0.003. The current market value is about US$3 million. Price perfect for a Christmas tree.
According to Lookonchain, Davido's initial capital for tokens on Pump.fun was 7.5 SOL. He initially used 7 SOL to buy 20% of the total, and sold it within 11 hours for a profit of about $470,000. His current position is about $200,000.
Well-known commentator, Brother Tuao Dashi, commented: "This is a piece of shit. It has been selling since it went online." He also revealed that Davido issued two zero-coins in 2021, both of which were dumped on the first day, showing his lack of long-term vision.
JENNER: Hard work can't reverse the decline
The JENNER token issued by Katherine Jenner attracted widespread attention on the first day. However, despite Jenner's hard work, constant interaction with fans in Space live broadcasts, and frequent posting and forwarding of messages through the X platform, the price of the token continued to fall. The current market value is about 7.5 million US dollars, a drop of more than 50% in 24 hours.
Jenner deleted the relevant tweets after promoting the new coin twice on the X platform, showing the confusion and lack of integrity in his operation. This behavior undoubtedly sentenced the JENNER coin to "death".
MOTHER: Insider Trading Scandal
Iggy Azalea’s MOTHER coin also suffered a sharp drop, with a current market value of about $12 million. According to a report by data mining website Bubblemaps, MOTHER’s insiders had purchased 20% of the supply before Iggy Azalea released the news and sold tokens worth $2 million before the 29th.
BITWU.ETH said that there will be more celebrity tokens in the future, but most of them will have a lot of internal transactions and eventually become worthless or directly RUG (run away). This situation is similar to the previous celebrity NFTs, which makes people worry about its sustainability. Most celebrities do not understand the game of the cryptocurrency circle, lack continuous investment, and it is difficult to attract investors in the long run.
Celebrity Coin’s Short-term Glory and Long-term Risks
Although the concept of celebrity coins has triggered a short-term market boom, this boom is difficult to sustain. Without a strong leader to drive it, the concept of celebrity coins will soon become a PVP (player-versus-player) game, and no one will be willing to take over.
In fact, celebrity coins have been in the market for three days, but no coin has shown sustained upward momentum. This wave of operations has shown that these celebrity coins are very ruthless in their "open-handed cutting" tactics. In addition to insider trading and scientists who bought in at the beginning, ordinary investors who get the news from social media and participate in it have a very high probability of losing money.
Celebrity coins are difficult to invest in in the short term, and are even more risky in the long term. For investors, these celebrity coins may reveal a current situation: the rise of MEME coins does not only rely on concepts and communities, but also requires the silent efforts of teams and funds. It is difficult to support a long-term market boom relying solely on traffic and shouting orders.
