Vitalik Buterin, co-founder of ethereum” target=”_blank” rel=”noopener nofollow”>ethereumhas expressed concern about the proliferation of memecoins endorsed by celebrities, throwing harsh criticism at the latest trend in the cryptocurrency space.
His comments come at a time when the crypto industry is grappling with the fallout from several high-profile influencer-backed token projects that have left investors cautious and the market in disarray.
Buterin expressed his disapproval of the current trend of celebrities experimenting in the crypto space during a conference on Wednesday. He criticized these efforts for often failing to meet the fundamental requirements of financialization and offering little more than transitory financial gains.
Buterin highlighted that these initiatives did not fully deliver on the promise of blockchain technology and lacked substance and direction.
He mentioned previous projects like Mila Kunis and Ashton Kutcher's “Stoner Cats” as illustrations of nobler endeavors, emphasizing that these collections had a creative and humanitarian bent.
However, he said that lately celebrity-backed companies had a tendency to scale quickly and then disappear, leaving a trail of disappointed investors in their wake.
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I'm pretty unhappy with “this cycle's celebrity experimentation” so far.
“Funding as a means to an end”, I can respect if the end is worthy (health, open source software, art, etc.). Financialization *as a final product*,
Ashton and Mila…
— vitalik.eth (@VitalikButerin) twitter.com/VitalikButerin/status/1798290424622113230?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>June 5, 2024
Celebrity-Endorsed crypto Companies
The latest celebrities to come under scrutiny are television personalities. crypto-celebrities” target=”_blank” rel=”noopener nofollow”>Caitlyn Jenner and rapper Iggy Azalea. Jenner's token, JENNER, launched on May 28, quickly descended into chaos. At first, investors were skeptical and suspected a possible hack of Jenner's social media.
However, Jenner assured her followers about the legitimacy of the token. In one day, the token's value plummeted by more than 65%, sparking outrage and accusations of fraud, a scenario in which developers disappear with investors' funds, leaving their tokens worthless.
Iggy Azalea went public with the MADRE token after extensive marketing to her 7.6 million followers. Industry experts are already questioning its long-term viability, even though it has not yet gone through a major crisis.
Related Reading: ethereum ETF Approval Timeline Uncertain, SEC Chairman Warns
Growing concern over suspicious tokens
The “FLOYD” token is added to the streak. After promoting it on social media, world boxing champion Floyd Mayweather abruptly deleted promotional posts about it, sparking fears of another possible rug pull.
The ethereum co-founder's criticism is in line with growing skepticism about the security of these celebrity-backed ventures. In his description of the qualities of reputable cryptocurrency initiatives, he emphasized the importance of promoting the common good, pursuing ethical goals, and ensuring longevity.
Featured image from Chainalysis, TradingView chart
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