This 12 months noticed an explosion of meme coin launches, lots of which have questionable ties.

Actually, Lookonchain’s information successfully highlights the perils of buying and selling meme cash, particularly these endorsed by celebrities, with the most recent highlight on American movie star Caitlyn Jenner’s JENNER, which was launched on the Solana blockchain.

JENNER Memecoin Pitfall

Regardless of a number of market members questioning the legitimacy of the token, some merchants nonetheless went on to purchase and commerce JENNER tokens. One dealer, who had beforehand turned an enormous revenue by changing 2,620 SOL into 21,159 SOL (price roughly $3.7 million) inside 5 days by buying and selling the BOME token, noticed his fortune take a serious hit with JENNER.

Investing 1,208 SOL into JENNER, the dealer managed to recuperate solely 423 SOL, leading to a lack of 785 SOL, equal to round $133.4K, in simply someday, as per Lookonchain’s newest tweet.

Initially, market members disregarded Jenner’s submit relating to the token, fearing it is likely to be a hack, as related incidents involving movie star accounts selling cash or crypto protocols falsely have occurred up to now. Usually, such compromises are swiftly detected and addressed by safety groups.

Nonetheless, Jenner’s account continued to advertise the token hours after its preliminary launch, elevating considerations. Later, Jenner clarified in a tweet that her account was not hacked.

In a follow-up tweetJenner mentioned that if the namesake token on the Ethereum blockchain hits a $50 million market cap, she promised to donate to former President Donald Trump’s marketing campaign from the tax revenues generated. The previous Olympic gold medal-winning decathlete additionally championed the reason for defending cryptocurrency, dubbing it “ULTRA MAGA.”

‘D-Tier’ Celebs and Doubtful Meme Cash

Meme coin hype seems to be removed from fading, however their speedy proliferation has many specialists frightened who consider that these tokens have a detrimental impression on the business and even find yourself overshadowing the efforts of hardworking groups devoted to creating respectable merchandise.

Outstanding on-chain sleuth ZachXBT additionally addressed the broader challenge of meme coin scams, significantly these endorsed by “d-tier” celebrities who usually have histories of selling doubtful schemes, resembling Davido’s involvement with RapDoge, Echoke, and Racksterli – a infamous Nigerian Ponzi scheme.

Regardless of their previous, these figures proceed to draw assist each time they launch new tasks, usually leading to pump-and-dump situations. The detective cautioned that these celebrities are primarily motivated by simple monetary features, providing minimal effort and worth in return.