The venture of celebrities into the crypto market has seen a significant downturn as the market values of their tokens have fallen dramatically since their launch a month ago.
According to data compiled by a prominent crypto community member, Slorg, all 30 celebrity tokens launched on the Solana blockchain in June have experienced steep declines from their all-time highs, with an average decrease of 94%.
Out of the 30 memecoins, the four top-performing tokens are down more than 70% from their recent all-time highs, while the following seven have dropped more than 90%. Meanwhile, roughly half of the tokens have fallen over 99%.
The market capitalization of these tokens tells a similarly grim story. Out of the 30 tokens, 23 have market caps below $1 million as of press time, while the remaining seven tokens’ current market caps are as follows:
- Andrew Tate (DADDY): $66.4 million after falling 73.23%
- Caitlyn Jenner (JENNER(ETH)): $2 million after falling 75%
- Iggy Azalea (MOTHER): $69.3 million after falling 78.68%
- Barron Trump (DJT): $77.4 million after falling 80.2%
- Zack Morris (ZACK): $17.1 million after falling 84.17%
- Jason Derulo (DERULO): $5.1 million after falling 88.67%
- Lil Pump (LILPUMP): $1.2 million after falling 88.89%
Despite the substantial losses, some tokens remain “active” as their associated celebrities continue to tweet about them regularly. For example, Waka Flocka’s token, down 99.7% from its all-time high with a market cap of $400,000, is still actively promoted on social media.
Overall, only 40% of the celebrities have tweeted about their token at least once in the past week. Most have followed the pattern of an initial surge in activity followed by a steep drop-off. Only a few remain genuinely engaged with their tokens but with varying levels of success.
The future of these celebrity tokens is uncertain. The current data does not look promising, but the volatile nature of the Web3 space means that circumstances can change rapidly. However, the pattern of initial pumps followed by significant drops raises concerns about the legitimacy and long-term viability of these tokens.
Meanwhile, industry leaders like Vitalik Buterin have criticized these tokens and the trend for lacking substance and utility. He said at the time that memecoins should be launched with a real-world use case in mind, such as charity or crowdfunding.
Additionally, Buterin argued that celebrity tokens, that have the backing of such large fanbases, should serve a public good beyond merely enriching celebrities and early adopters.
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