Doja Cat Cries Wolf after $1.6 Million Memecoin Crash

The thought-to-have-subsided memecoin craze remains afloat as new influencer names emerge with new tokens.

Doja Cat manipulating a kid angel in heaven.
Created by Kornelija Poderskytė from DailyCoin
  • The celebrity memecoin cycle is still ongoing.
  • Rapper Doja Cat’s name is the latest caught up in the frenzy.
  • The WATER memecoin on Solana has also drawn attention for high-profile soccer star endorsements.

The crypto industry is often swept up in a new trend, few as controversial as the celebrity memecoin cycle. This trend often features pump-and-dump schemes by popular figures who wield their influence to promote projects. Less than two months ago, the process picked up pace again, marked by the aggressive promotion of new projects by multiple personalities.

While the frenzy has only started to cool, another social figure has been tied to the scheme, although this time with a twist.

‘Doja Cat’ Token Brouhaha

The crypto market was thrust into another interesting celebrity memecoin chapter on Tuesday, June 9, 2024, when tweets of a $DOJA token promotion reportedly surfaced on the official X account of American rapper Doja Cat. According to celebrity news outlet Daily Trends, the star’s account was hijacked by malicious actors, who posted fraudulent promotions urging her followers to invest in the token.

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However, the now-deleted posts were reportedly followed by a video of the Say So star debunking the token promotion, stating, “It is not me. It is literally an imposter!”

Screenshot of the now-deleted Doja Cat-themed token per Daily Trends.

The alleged imposter did not stop at the $DOJA token promotion, taking shots at its predecessor, Iggy Azalea. Interestingly, Azalea, who has spent the past couple of weeks relentlessly promoting her token, took to X in Doja’s defense, asserting that the recent posts are indeed fraudulent.

“Get rugged if yall want but I’m cool w that girl irl so yall fucked up w that tweet hackers,” stated Azalea. Despite these claims, the $DOJA token surged to a trading price of approximately $0.00166 within a few hours of its launch before tumbling, causing investors an estimated $1.6 million loss.

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The Doja Cat-tied token is not the only one to draw attention in recent days. 

Soccer Stars Promote Solana-Water Token 

On July 8, football superstar Lionel Messi took to his Instagram account to promote the Solana-based memecoin WaterCoin (WATER).

Messi’s post bore an image of him with the WATER token mascot poking on his shoulder, quickly raising eyebrows across the industry. Several community members condemned the move, raising concerns that the Argentine footballer is the latest to join the bandwagon of popular figures shilling fleeting Solana tokens.

However, things heated up when another footballer, Ronaldinho Gaúcho, joined in the trend with a similar post, drawing similar concerns among industry participants on the promotion of the Solana-based memecoin.

Several industry figures have raised concerns about the broader trend of memecoin projects backed by celebrity figures, condemning them as lacking in substance and genuine purpose.  

On the Flipside

  • In 2022, the US Securities and Exchange Commission (SEC) sanctioned influencer Kim Kardashian and boxer Floyd Mayweather for promoting a fraudulent token.
  • The majority of influential figures entering the industry are often accused of pursuing selfish financial gain and lacking genuine knowledge about crypto. 
  • Like the DOJA token, memecoin projects by celebrity figures including Caitlyn Jenner, Hulk Hogan, and more have also suffered flash crashes in recent months.

Why This Matters

Celebrity projects like the Doja Cat-themed token or WATER-Messi Solana memecoin are known for their fleeting successes, more often than not turning into financial disasters that leave investors out of pocket. However, regardless of the name tied to them, investing in memecoins carries substantial risk, and investors are advised to exercise caution when engaging with such projects.

Find out more about the celebrity memecoin craze so far this year in this article:
Iggy Azalea, Caitlyn Jenner, and Solana?! Here’s What’s Up 

Here’s what industry figures think of the fate of the newly proposed Solana ETFs:
Analysts Weigh In on Solana ETF Prospects Amid Fresh Filings

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Grace Abidemi

Grace Abidemi, a cryptocurrency reporter at DailyCoin, covers industry developments and trends. She previously worked as a freelance writer. With a Bachelor's degree in German Language and certifications in marketing and storytelling, Grace creates engaging content. When not working, she's in Nigeria, mastering cooking and canvas painting, and enjoys learning about different cultures and languages.