This year saw an explosion of meme coin launches, many of which have questionable ties.
In fact, Lookonchain’s data effectively highlights the perils of trading meme coins, especially those endorsed by celebrities, with the latest spotlight on American celebrity Caitlyn Jenner’s JENNER, which was launched on the Solana blockchain.
JENNER Memecoin Pitfall
Despite several market participants questioning the legitimacy of the token, some traders still went on to buy and trade JENNER tokens. One trader, who had previously turned a massive profit by converting 2,620 SOL into 21,159 SOL (worth approximately $3.7 million) within five days by trading the BOME token, saw his fortune take a major hit with JENNER.
Investing 1,208 SOL into JENNER, the trader managed to recover only 423 SOL, resulting in a loss of 785 SOL, equivalent to around $133.4K, in just one day, as per Lookonchain’s latest tweet.
Initially, market participants disregarded Jenner’s post regarding the token, fearing it might be a hack, as similar incidents involving celebrity accounts promoting coins or crypto protocols falsely have occurred in the past. Typically, such compromises are swiftly detected and addressed by security teams.
However, Jenner’s account continued to promote the token hours after its initial launch, raising concerns. Later, Jenner clarified in a tweet that her account was not hacked.
In a follow-up tweet, Jenner said 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 campaign from the tax revenues generated. The former Olympic gold medal-winning decathlete also championed the cause of protecting cryptocurrency, dubbing it “ULTRA MAGA.”
‘D-Tier’ Celebs and Dubious Meme Coins
Meme coin hype appears to be far from fading, but their rapid proliferation has many experts worried who believe that these tokens have a detrimental impact on the industry and even end up overshadowing the efforts of hardworking teams dedicated to developing legitimate products.
Prominent on-chain sleuth ZachXBT also addressed the broader issue of meme coin scams, particularly those endorsed by “d-tier” celebrities who often have histories of promoting dubious schemes, such as Davido’s involvement with RapDoge, Echoke, and Racksterli – a notorious Nigerian Ponzi scheme.
Despite their past, these figures continue to attract support whenever they launch new projects, often resulting in pump-and-dump scenarios. The detective cautioned that these celebrities are primarily motivated by easy financial gains, offering minimal effort and value in return.
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