These six tokens from five different celebrities have a similar trading pattern, with prices initially rising sharply and then plummeting.
The SEC has taken legal action against various celebrities, including Kim Kardashian, for promoting cryptocurrency tokens.
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Posted on May 30, 2024 at 2:46pm EST.
In recent days, token introductions have been one of the things mainstream celebrities have done to enter or re-enter the cryptocurrency industry. However, when this handful of celebrities launched their tokens, the price of their respective coins quickly plummeted.
On Sunday, a token bearing Olympic gold medalist Caitlyn Jenner's last name began trading on Solana, the next day American hip-hop artist Rich the Kid launched his RICH token, and on Tuesday Australian rapper Iggy Azalea launched her MOTHER token on Solana.
On Wednesday, Nigerian singer-songwriter Davido announced DAVIDO via Pump.Fun, Ohio-born rock star Trippe Redd posted the contract address for his Solana-based token BANDO on X (formerly Twitter), and Jenner launched another token with the same ticker on Ethereum.
Read more: Solana has attracted attention from mainstream celebrities like Caitlyn Jenner, Davido, Iggy Azalea, Rich The Kid and Trippie Redd
All six of these tokens from five different mainstream celebrities have shown similar trading patterns of initial spikes and then crashes in price: In the past 24 hours, Azalea's MOTHER token has fallen 41%, Rich the Kid's RICH token has fallen 52%, and Jenner's Solana token has fallen 67%.
Trippie Redd's BANDO is trading at $0.00020 on a 24-hour trading volume of $22.73 million, well below its initial launch price of $0.00047. Jenner's token on Ethereum is trading above its original opening price, but the token's value has fallen by almost 70% in the hours since its rally peaked at 12:30 a.m. Thursday.
While some people have successfully traded these celebrity tokens and made profits, “Many traders have lost money trading celebrity token $JENNER on #Solana. [memecoin] “$BOME”, I have written Cryptoanalysis Detective Lookonchain Talks X. BOME Meme Coin Traders Lose Over $133,000 in One Day Trading on JENNER.
Davido-related wallet offloading in space with Ansem
While DAVIDO has risen over the past 24 hours, the token has given up most of its gains. The token was trading at nearly 1 cent around 6pm ET on Wednesday, but is now trading at $0.0029, a drop of 72%.
Look on Chain also announced on Wednesday night that The wallet address where DAVIDO was created Spent 7 SOL on Pump.fun, worth about $1,190 get Approximately 203 million DAVIDO tokens were sold, making up over 20% of the total supply before being sold in multiple transactions. Look on ChainIn 2019, the DAVIDO deployer address sold 121.88 million tokens for approximately $474,400.
Additionally, according to blockchain research firm Solscan, shortly before 9pm ET on Wednesday, when Davido was on Twitter Spaces with notorious meme coin trader Ansem, a DAVIDO wallet address was exchanging DAVIDO for SOL via DEX aggregator Jupiter.
The inside story about Iggy Azalea's mother
Davido's token wasn't the only case involving suspicious activity. A team from Bubblemaps, an on-chain tools platform, identified insider activity in Azalea's MOTHER token. “Insider bought 20% of the supply at launch and already sold off $2M before Iggy Azalea (@IGGYAZALEA) announced it.” I have written X Wednesday team.
Specifically, one wallet address Scooped Approximately 119 million MOTHER tokens, or 12% of the total supply, were issued before Azalea announced the contract address for the tokens on X. The wallet address then sold all of the MOTHER tokens.
While Davido, Azalea, Rich the Kid, Trippie Redd and Caitlyn Jenner launched their own tokens last week, this isn't the first time a mainstream celebrity has promoted a token, nor is it the first time crypto traders have seen the price of a celebrity-related token plummet.
Wale.Moca, an advisor to gaming platform Immutable and identity project Mocaverse, looked at the performance of similar projects and Said“As expected, they are all dead, most of them wounded.”
The U.S. Securities and Exchange Commission has taken legal action against celebrities who promote crypto tokens. For example, in October 2022, the SEC Charged Kim Kardashian “promoted cryptocurrency securities offered and sold by Ethereum Max on social media without disclosing the compensation she received for the promotion.”
The BubbleMap team warned that “celebrity tokens will continue to grow” and urged people to remember that “most of them will eventually become worthless and are often plagued by insider trading.”
