- Ethereum co-founder Vitalik Buterin has slammed the ongoing trend of celebrity-backed memecoins.
- Recent weeks have seen numerous social figures engage in pump-and-dump token schemes.
- Many celebrity and influencer-linked projects that emerged in past years have faced rug pulls.
Despite their frequent missteps, social figures and celebrity influencers continue to cause disruptions in the crypto industry. From promoting fraudulent projects to orchestrating pump-and-dump schemes, numerous celebrities have faced backlash for their opportunistic and often unethical involvement in the sector.
Amidst a renewed surge in this trend, major industry players are now publicly condemning these actions.
Vitalik Slams Memecoins Backed by Celebrities
Weighing in on the ongoing celebrity memecoin saga on Wednesday, June 5, 2024, Ethereum co-founder Vitalik Buterin expressed discontent with the current wave of celebrity experimentation in the industry.
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Buterin asserted that the experiment cycle so far defies the purpose of financialization, asserting that they offer no substantive purpose beyond quick financial gain. Citing past projects including Ashton Kutcher and Mila Kunis’s “Stoner Cats” project, he added that these collections were “vastly more honorable” than any of the projects that have emerged this year.
The Ethereum co-founder outlined the attributes of respectable and promising projects, stating that they must either serve the public good or be directed towards a charitable goal. Longevity was also a focal point of his discussion, emphasizing that an investment-worthy project must be long-lasting, rather than “bubbling around for a few months and then being forgotten.”
Celeb Memecoin Frenzy Continues
Many influencer-backed coins have come and gone, but the latest to renew suspicion are TV figure Caitlyn Jenner and American rapper Iggy Azalea’s individual tokens, JENNER and MOTHER.
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Jenner’s token, launched on May 28, 2024, faced skepticism across the industry before quickly escalating into a rug-pull disaster. Despite initial doubts about threat actors hacking the official X account to orchestrate a fraudulent scheme, Jenner convinced her followers of the token’s legitimacy. However, the asset’s value plummeted by over 65% in just one day, leaving investors reeling from the sudden loss.
Following Jenner’s lead, Iggy Azalea’s MOTHER token emerged, promoted to her 7.6 million followers. While the token has yet to face major controversies, questions about its legitimacy have also arisen within the industry
In the same pattern, Nigerian artist Davido touted a ‘pump-and-dump’ scheme, becoming the third famous face in succession to engage in a fleeting success token for quick financial gain. Like its predecessors, the token quickly turned into a disaster, condemned widely by the artist’s 15.4 million followers as yet another scam.
On the Flipside
- Regulatory authorities have sanctioned several influencers, such as Kim Kardashian and Floyd Mayweather, for fraudulent crypto promotions.
- A certain Sahil Arora was linked to the majority of these fraudulent tokens, including previous ones such as the now-dumped SOULJA BOY project.
- Most influential figures entering the industry are often accused of pursuing selfish financial gain, lacking genuine knowledge of the asset class.
Why This Matters
Vitalik Buterin’s condemnation of celebrity-backed meme coins resonates with the growing concern about the reliability and legitimacy of these projects, particularly given their history of controversy.
Read more about the truth behind these influencer and celebrity-backed projects:
Crypto Influencer Advice Does Not Pay, Report Finds
The financial woes of defunct exchange FTX are easing, read to find out how:
FTX and IRS Secure Settlement Approval in $24B Debt Claim
