Celeb memecoins on Solana have change into a dime a dozen this cycle, however information reveals buyers hardly see returns.
Some 30 celeb memecoins launched on Solana (SOL) final month as well-liked figures capitalized on the speculative funding tradition gripping one in every of crypto’s largest ecosystems.
Memecoins are a play on well-liked tradition, combining humorous photos and social media themes with decentralized tokenomics to challenge hype-driven cryptocurrencies. Celebrities like Andrew Tate, Caitlyn Jenner, Davido, Iggy Azalea, Jason Derulo, and 50 Cent have indulged within the celeb meme meta. Public standing has finished little to make sure success within the web3 world.
A Jupiter alternate staff member stated meme tokens backed by celebrities confirmed a median decline of 94%. Half the cash are down 99% from the highs inside 30 days of launch. Tokens from Tate, Jenner, and Azalea have faired greatest, with declines throughout the 70-80% vary.
Insiders revenue essentially the most from memecoins
Memecoins are extraordinarily risky by nature, even for cryptocurrencies. The opportunity of quadrupling the worth inside hours and falling under itemizing ranges underscores the chance related to these tokens.
Yet one more layer exists to the regular decline sample seen with memecoins. Based on Bubblemaps, information confirmed a community of insider wallets managed enormous provide parts. Insiders could possibly be anybody from celebrities themselves to staff members and builders engaged on the undertaking. Anybody behind the scenes with prior data of the launch is an insider.
Bubblemaps famous that insiders owned anyplace from 20% to 90% of celeb memecoin provides for tokens launched in June. Insiders possible bought at excessive costs and profited essentially the most from these celeb launches.
Solana co-founder Raj Gokal described meme tokens as an intuitive strategy to appeal to retail buyers at Consensus 2024. Business veterans like Andre Cronje and Vitalik Buterin have spoken out towards meme tokens with out utility or finish purpose. However, cash fueled by memetic tradition don’t appear to be going anyplace.
