- The celebrity memecoin scandal is back with a fresh chapter.
- American Rapper Wiz Khalifa is the latest tied to a fraudulent token.
- Celebrity meme coins have become a recurring trend in 2024.
Throughout this year, the crypto industry has seen a surge in high-profile figures jumping on the bandwagon, launching tokens that promise quick gains but often deliver disaster. The trend has been largely characterized by quick pump-and-dump schemes, leaving many investors with steep losses.
While the industry was thought to be catching a break, another chapter in the scandal has emerged.
Wiz Khalifa-Themed Memecoin Raises Eyebrows
The trend of questionable celebrity-backed tokens has again been reignited with a memecoin tied to American rapper Wiz Khalifa. On November 3, 2024, several suspicious posts appeared on Khalifa’s official X (formerly Twitter) account, promoting a Solana-based token called $WIZ to his 37 million audience.
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The now-deleted posts quickly sparked concern among his followers and the broader crypto community, as the incident echoed the all-too-familiar pattern of celebrities endorsing risky assets.
Fueled by Khalifa’s platform, the $WIZ token quickly surged to a market valuation of $3.4 million within minutes of its launch, only to crash soon after in a classic pump-and-dump fashion.
Industry investigator ZachXBT, however, came to the Black and Yellow-rapper’s defense, asserting that his account was hijacked. “Do not buy the Wiz Khalifa Pump Fun [token] it’s the same hacker who compromised Andy Ayrey (Truth Terminal creator) the other day,” he wrote. ZachXBT’s warning is backed by the proven trend of hackers adding to the chaos, seizing on the craze and exploiting the hype for personal gain.
Despite the disclaimer, the Wiz Khalifa scandal has rekindled concerns about the controversial nature of celebrity-backed tokens.
Celebrity Memecoin Chokehold
More than 30 memecoins backed by influential figures emerged across the industry this year, most of which have plummeted to zero today. From rappers and TV personalities to internet influencers, celebrities took the crypto scene by storm, drawing unsuspecting investors into cycles of major losses.
Prior to the Wiz Khalifa token, American rapper Cardi B was the most recent to push her memecoin. Unlike the Khalifa incident, believed to be the result of a hack, Cardi B openly promoted her token for weeks, even as it drew criticism from industry insiders.
Today, Cardi B has wound down her token venture, underscoring the fleeting nature of these projects and solidifying the impression that they often aim for quick profits rather than long-term value.
On the Flipside
- Some industry members maintain the belief that the Wiz Khalifa token scandal is not a hack.
- The UAE recently opened an investigation into Cardi B’s token and other similar promotions have also faced regulatory scrutiny and penalties in the past.
Why This Matters
The track record of celebrity-backed crypto projects shows that most of them are destined to disappoint. Whether the Wiz Khalifa token is truly the result of a hack or simply another scam, investors are urged to exercise caution and conduct due diligence before diving into such projects.
Read this article to find out about the psychology behind celebrities launching tokens:
Why Do Celebrities Turn to Crypto? History and Psychology
Learn about how much malicious actors made away with last month:
Here’s How Much Crypto Lost to Hacks and Scams In October
