The rise of celebrity-backed tokens, fueled by the meme coin frenzy, has polarized the community.
One such meme coin that has caught the market's attention is American television personality Caitlyn Jenner's JENNER token. Jenner launched 12 meme coins on the Solana blockchain in just four days, earning profits of 2,381 SOL, which is equivalent to $405,000.
Profits of $405 thousand in just 4 days
The latest from Lookonchain x.com/lookonchain/status/1796418414598332628″ target=”_blank” rel=”noopener” data-wpel-link=”external”>recommendations reveal that Jenner's approach included launching tokens like JENNER, purchasing large quantities, and selling them quickly for significant profits. For example, she bought 44.56 million JENNER tokens for 1.3 SOL and sold them for 253 SOL, making a profit of 252 SOL, equivalent to $43,000.
The transaction trail led Lookonchain researchers to discover a network of newly created addresses, all funneling profits to a single Binance deposit address, a telltale sign of Jenner's involvement.
Despite initial skepticism regarding Jenner's social media posts promoting the token, concerns continued until the former Olympian confirmed her endorsement, dismissing fears of a possible hack. With meme coin mania gripping the industry amid a broader price recovery, several experts have highlighted the dangers inherent in celebrity-backed tokens, which often lure in unsuspecting traders only to leave them financially drained.
Even experienced traders, like one who previously made $3.7 million in profits in five days trading another token, fell victim to the lure of the Jenner coin, suffering losses worth 785 SOL, equivalent to $133,400, in a single day.
As CryptoQuant's Ki Young Ju previously explained, such episodes not only erode trust within the cryptocurrency community but also overshadow genuine innovations that legitimate projects pursue.
Celebrity cash theft alert
A market actor under the pseudonym “Cold Blooded Shiller” x.com/ColdBloodShill/status/1795999224145772674?” target=”_blank” rel=”noopener” data-wpel-link=”external”>pointed points out that celebrity-endorsed projects have historically failed, with many quickly losing all value, some within hours or days of launch, and very few lasting more than a few months.
The investor advised his followers to view celebrity endorsements of meme coins as an opportunistic “cash grab,” similar to previous trends like simply mentioning “crypto” during past market cycles or “nft” in more recent times. .
He said celebrities latch on to these buzzwords to capitalize on the hype and enthusiasm surrounding them, causing a snowball effect in which more people rush to invest in these projects without fully understanding the risks involved.
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