Although celebrities may raise awareness of a project, their involvement does not make the project legitimate. In fact, celebrity-backed projects have performed terribly in previous cryptocurrency cycles. Nonetheless, inexperienced investors continued to believe in these projects despite repeated failures.
Even without real-world use cases, platforms like pump.fun Please make it easy to introduce MEMCOIN. This led to numerous highly publicized failures and allegations of fraud. Here are 5 cases where celebrity-sponsored tokens went wrong.
1. Hawk Tuah Token by Haliey Welch
Haliey Welch became famous for a comment she made during an interview that went viral. Buoyed by her newfound fame, she launched memecoin. Lucky Hawk (HAWK). Despite light-hearted support, including from one of the following: Mark CubanThe token launch on December 4th turned into a disaster.
- Execution failed: HAWK lost 91% of its value in 3 hours.
- Charges: Allegations of insider trading and sniping were revealed.
- response: Cryptocurrency researcher “Coffeezilla” criticized the launch but denied it was a sham.
- Current status: Although no investigation was announced, Welch’s reputation took a hit.
2. Andrew Tate’s DADDY token
It was launched by controversial influencer Andrew Tate. Dad Tate (DADDY), It was claimed to symbolize male empowerment. Despite the initial hype, the token fell victim to a pump-and-dump scheme.
- Insider Trading: On-chain analysis shows that insiders hold 30% of the token supply worth $45 million.
- Unfair practices: The large purchases were made prior to public promotion, raising concerns about their integrity.
- Current status: Although Tate didn’t sell his token, The project has lost credibility.
3. Jack Doherty’s McLaren Token
Streamer Jack Doherty is using his controversial fame to McLaren. Known for his reckless behavior, Doherty’s token quickly turned into a scandal.
- Rug Pull: Doherty reportedly bought the token with multiple wallets, promoted it on a live stream, and then sold his holdings, causing the price to plummet.
- Public Outrage: The backlash on social media was immediate, but no legal action was taken.
- result: Doherty removed promotional content, causing losses to investors.
4. Sean Kingston’s KING Token
Sean Kingston, famous for his music, joined us. cryptocurrency space With the release of KING. Despite an initial market capitalization of $4 million, the token plummeted within minutes.
- Legal issues: Kingston faces fraud charges unrelated to the tokens, including more than $500,000 worth of stolen property.
- Current status: KING’s collapse added to his existing legal troubles and further damaged his reputation.
5. Davido’s Memecoin failure
Afrobeat star Davido has launched a memecoin based on Solana. DAVIDO. The token crashed shortly after launch.
- Token Flip: Davido spent 7 SOL to purchase 20.3% of the supply and later sold it for $500,000, making the coin worthless.
- Public warning: nigerian secretary Issued warning about memecoin risks.
- influence: Although no legal action was taken, the incident tarnished Davido’s image.
Lessons from celebrity-endorsed cryptocurrency scams
Celebrity involvement in cryptocurrency may attract inexperienced investors, but it rarely guarantees success. Here are some highlights:
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warning signs |
explanation |
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hype about substances |
Projects that rely on celebrity status instead of utility are often risky. |
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insider trading |
Large pre-launch purchases by insiders indicate potential manipulation. |
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Pump and dump method |
Tokens that rise and fall rapidly may involve communal dumps. |
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lack of transparency |
Limited information about the project’s goals or team is a red flag. |
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regulatory warning |
Tokens designated by financial authorities should be approached with caution. |
endorsed by a celebrity Cryptocurrency projects continue to gain attention, but they still carry risks. Experienced investors often view these tokens as a risk signal rather than an opportunity.