In the wake of a surge in meme coin launches this year, Lookonchain has highlighted the risks associated with trading these tokens, particularly those endorsed by celebrities. The latest example is the JENNER token, launched on the Solana blockchain by American celebrity Caitlyn Jenner. Despite doubts about the token's legitimacy, some traders bought and traded JENNER tokens, leading to significant losses for some.

One trader who had previously made a substantial profit trading the BOME token, suffered a significant loss with JENNER. After investing 1,208 SOL into JENNER, the trader could only recover 423 SOL, resulting in a loss of 785 SOL, or approximately $133.4K, in just one day.

Concerns were raised when Jenner's account continued to promote the token hours after its launch. However, Jenner later clarified that her account was not hacked. She also promised to donate to former President Donald Trump's campaign from the tax revenues generated if the token on the Ethereum blockchain reaches a $50 million market cap.

Despite the risks associated with meme coins, their popularity shows no signs of waning. Experts warn that these tokens can overshadow the efforts of teams dedicated to developing legitimate products and can have a negative impact on the industry. They also caution against meme coin scams, particularly those endorsed by celebrities who are primarily motivated by easy financial gains.