Market warning: meme tokens under the influence of celebrities, asset bubbles and speculative risks coexist

In the world of cryptocurrency, celebrity power has always been a force that cannot be ignored. Recently, the latest statistics from Jupiter Slorg revealed that 30 celebrities have joined the ranks of issuing meme tokens on the Solana blockchain in the last month, including tokens from well-known figures like Andrew Tate and Soulja Boy.

However, the market performance of these celebrity tokens was astonishing. The average value fell by an astonishing 94% from its peak. Even the best-performing tokens suffered a loss of more than 70%, and even half of the token value. Shrunk by more than 99%.

This is not only a thought-provoking phenomenon, but also a warning against bubbles and speculation in the cryptocurrency market. With the disclosure of these data, we can’t help but ask: How much magic does celebrity power still have in the cryptocurrency market? And how long can investors’ enthusiasm for these celebrity tokens last? Let’s dive into the reasons and implications behind this phenomenon.

The Dilemma of Celebrity-Issued Meme Coin

Recently, a new phenomenon has emerged in the cryptocurrency market. Meme coins issued by celebrities have not lived up to their reputation. Currently, the market value of 22 of the 30 newly launched celebrity meme tokens has fallen below the $1 million mark, showing the sluggishness of the market.

Source: X

Despite the significant decline in market capitalization, these tokens still maintain a certain level of activity on social media, especially Twitter. The phenomenon started in May when Caitlyn Jenner launched the JENNER token, which despite initially facing a lot of skepticism saw its market capitalization surge to $40 million in just 24 hours. Following closely, rapper Iggy Azalea also launched her Mother Iggy (MOTHER) token on the Solana blockchain, which also quickly gained market attention.

Other celebrities, including Lil Pump, Soulja Boy and Andrew Tate, have since jumped on the bandwagon and launched their own meme tokens. However, many market observers point out that celebrity participation is often a signal that the market has reached a peak. This appears to be borne out judging by the recent decrease in meme token trading volume and significant price drops.

According to data from CryptoQuant, the dominance of meme coins in the altcoin market has declined significantly since mid-May and continued to plummet in June. This further shows that although celebrity effect can attract a lot of attention in a short period of time, it may not bring long-term market value to these tokens.

Meme Coin may become the "new favorite" of the Internet celebrity economy

Meme coins issued by celebrities are becoming an emerging trend in the cryptocurrency field. This trend is driven by Internet celebrities and celebrities, who use their influence to bring short-term popularity to these crypto assets. However, history has always been eerily similar, with these projects often quickly floundering due to retail sell-offs and accusations of fraudulent behavior, exposing an ongoing problem in the crypto market.

Looking back at past bull cycles, we can see how celebrities participated in and drove various trends in cryptocurrencies. In 2017, celebrities such as Paris Hilton, Floyd Mayweather and Jamie Foxx promoted numerous tokens by endorsing initial coin offerings (ICOs). Unfortunately, most of these ICOs ultimately fail, with studies showing that over 80% of ICOs are actually scams, and the celebrities involved are usually not punished with fines.

Fast forward to the 2021-2022 bull run, when the focus turned to non-fungible tokens (NFTs) and the Metaverse. Celebrities like Jake Paul, DJ Khaled, David Dobrik, and even former President Donald Trump Trump), have all joined the ranks of NFT promotion. But unfortunately, many of these projects also turn out to be scams.

By 2024, the focus turned to meme coins created by influencers before these coins began to gain mainstream popularity. Some misspelled coins, such as Doland Tremp (TREMP) and Joe Boden (BODEN), have also unexpectedly gained market attention and been listed on some centralized exchanges.

This phenomenon not only reflects the powerful influence of celebrity effect in the cryptocurrency market, but also reminds us that we need more vigilance and critical thinking in this field.

Conclusion:

유명인의 영향력은 암호화폐 시장에 큰 영향력을 갖고 있지만, 그것이 가져오는 인기는 지속되기 어려운 경우가 많습니다. 시장 거품이 꺼지면서 우리는 밈 토큰의 가치가 급격히 하락하는 것을 목격했으며, 많은 토큰이 상당한 시가총액을 잃었습니다. 이는 투자자들이 연예인 효과에만 매력을 느끼는 것이 아니라, 프로젝트의 진정한 가치와 잠재력에 대한 심층적인 분석을 수행해야 한다는 더욱 신중한 필요성을 반영합니다.

암호화폐 시장의 미래는 단기적인 과대광고가 아닌 기술 혁신과 실제 적용을 기반으로 구축되어야 합니다. 시장 참여자와 규제 기관은 투명성을 높이고, 사기에 맞서 싸우며, 투자자를 보호하기 위해 협력해야 합니다. 그래야만 시장이 건전하고 진정으로 가치 있는 프로젝트를 개발하고 인정받고 지원할 수 있습니다. 비판적 사고로 시장 역학을 검토하고 암호화폐 시장의 보다 성숙하고 합리적인 방향으로의 발전을 공동으로 추진합시다.

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