The enterprise of celebrities into the crypto market has seen a big downturn because the market values of their tokens have fallen dramatically since their launch a month in the past.
In accordance with information compiled by a distinguished crypto group member, Slorg, all 30 celeb tokens launched on the Solana blockchain in June have skilled steep declines from their all-time highs, with a median lower of 94%.
Out of the 30 memecoins, the 4 top-performing tokens are down greater than 70% from their current all-time highs, whereas the next seven have dropped greater than 90%. In the meantime, roughly half of the tokens have fallen over 99%.
The market capitalization of those tokens tells a equally grim story. Out of the 30 tokens, 23 have market caps under $1 million as of press time, whereas the remaining seven tokens’ present 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%
Regardless of the substantial losses, some tokens stay “lively” as their related celebrities proceed to tweet about them often. For instance, Waka Flocka’s token, down 99.7% from its all-time excessive with a market cap of $400,000, continues to be actively promoted on social media.
General, solely 40% of the celebrities have tweeted about their token not less than as soon as previously week. Most have adopted the sample of an preliminary surge in exercise adopted by a steep drop-off. Just a few stay genuinely engaged with their tokens however with various ranges of success.
The way forward for these celeb tokens is unsure. The present information doesn’t look promising, however the unstable nature of the Web3 area implies that circumstances can change quickly. Nonetheless, the sample of preliminary pumps adopted by important drops raises considerations in regards to the legitimacy and long-term viability of those tokens.
In the meantime, trade leaders like Vitalik Buterin have criticized these tokens and the pattern for missing substance and utility. He mentioned on the time that memecoins ought to be launched with a real-world use case in thoughts, reminiscent of charity or crowdfunding.
Moreover, Buterin argued that celeb tokens, which have the backing of such giant fanbases, ought to serve a public good past merely enriching celebrities and early adopters.