Experts believe that the trend of celebrities endorsing cryptocurrency projects often signals a short-term money grab rather than a real investment opportunity.

The number of celebrity-backed cryptocurrency projects has risen sharply, a trend driven primarily by the craze surrounding memecoins. However, the phenomenon has also sparked divisions within the cryptocurrency community, with different members holding different views and attitudes toward it.

One of the memecoins that has caught the market’s attention is the $JENNER token of American TV personality Caitlyn Jenner. Jenner promoted 12 memecoins on the Solana blockchain in just four days, earning a profit of 2,381 SOL, equivalent to $405,000.

Earn $405,000 in just 4 days

Lookonchain’s latest research results show that Jenner’s strategy includes issuing tokens such as JENNER, purchasing large amounts and then quickly selling them at high prices to obtain significant profits. For example, she purchased 44.56 million JENNER tokens at 1.3 SOL and sold them at 253 SOL, making a profit of 252 SOL, equivalent to $43,000.

Lookonchain investigators traced the transaction records and found a string of newly created addresses that funneled proceeds to a single Binance deposit address, which they said was a clear sign of Jenner’s involvement.

Despite initial skepticism about Jenner’s promotion of the token on social media, concerns about a potential hack were dispelled once the former Olympic champion confirmed her support.

Amid the memecoin craze sweeping the industry and the overall price recovery, multiple experts have pointed out the risks inherent in celebrity-endorsed tokens, which often attract unsuspecting traders and ultimately cause them to suffer significant financial losses.

Even experienced traders, such as one who had previously made $3.7 million in profits in five days trading another token, were unable to resist the lure of JennerCoin and lost the equivalent of 785 SOL, or about $133,400, in just one day.

As CryptoQuant’s Ki Young Ju has previously elaborated, incidents like this not only erode trust within the crypto community, they also obscure the true spirit of innovation that compliance projects seek to achieve.

Celebrity-style cash grab warning

A market observer who goes by the pseudonym ‘Cold Blooded Shiller’ pointed out through historical data analysis that most projects endorsed by celebrities ended in failure, many of which quickly depreciated to zero within hours or days after their release, and only a very few could last for more than a few months.

The investor reminded his followers that celebrity-endorsed meme coins should be viewed as a short-term "speculation". He pointed out that this phenomenon is similar to the trend of simply mentioning "cryptocurrency" or the recent mention of "NFT" in past market cycles, which are all using public attention and interest to drive short-term speculation on certain assets rather than based on long-term investment value.

He stressed that by using these buzzwords, celebrities took advantage of the public's hype and enthusiasm for them, triggering a chain reaction. As a result, many people invested in these projects without fully understanding the associated risks.

He seemed to imply that this phenomenon is often accompanied by a kind of blind following without a deep understanding of the real value and potential risks behind it.

Conclusion:

Caitlyn Jenner’s JENNER token case highlights the double-edged sword effect of celebrity endorsement of cryptocurrency projects. While potentially significant profits in the short term, this behavior can also lead to the erosion of community trust and the neglect of true innovation in the industry.

Investors, no matter whether they are novices or veterans, should be alert to the potential risks behind celebrity endorsements, avoid blindly following the trend, and make rational and well-informed investment decisions.

At the same time, the community and regulatory agencies should also strengthen supervision of such behaviors, protect the interests of investors, and promote the healthy development of the cryptocurrency industry. #迷因币 #投机 #投资