The celebrity listing frenzy seems to be the hottest topic of the week. Members of the crypto community have criticized the newly launched memecoins, as the tokens were launched with massive controversy.
After about a week of pumping and dumping, the United States Securities and Exchange Commission (SEC) issued an alert to investors. However, the SEC's warning did not stop more musicians from joining the second quarter crypto festival.
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SEC warns about celebrity memecoins
On Wednesday, the US SEC published an investor alert targeting memecoins. In the warning, the Commission alerted users about pre-sale and pumping schemes involving meme-based tokens.
The SEC explained that “scammers can create a memecoin and then promote it on social media.” After increasing the price and selling for a profit, investors see most of their money lost as the price declines rapidly.
The celebrity memecoin launching frenzy became a trending topic last week. As a result, many mainstream media figures, influencers, musicians, and athletes have shown “interest” in the crypto space.
In most cases, these celebrities start interacting with the crypto community right before promoting their soon-to-be-launched memecoins. However, the recent trend has been particularly controversial as these figures have, for the most part, worked with an alleged serial scammer.
Recently, celebrities and community members accused a man named Sahil Arora of allegedly orchestrating several pump and dump scams. Arora apparently defrauded investors and partners in every memecoin launch he was involved with.
Australian rapper Iggy Azalea launched MOTHER two days ago and claimed to have created the token to prevent Arora from using her image in his scams. Additionally, Rich the Kid and Caitlyn Jenner have come out to declare that the alleged scammer lied to them.
Now, more musicians have joined the memecoin crypto festival while being accused of abandoning their fans.
More musical acts to headline Memecoinchella
On Wednesday, crypto detective ZachXBT accused famous rapper Lil Pump of participating in a pump and dump scam. According to the internet researcher, the rapper shared and quickly deleted a post promoting his memecoin after the token was dumped.
The post said “small or big bomb” and tagged one of Arora's accounts. Lil Pump responded to the allegations, stating that she had never created a listing and accusing Arora of scamming him and her fans. Furthermore, he apparently sent “evidence” to the crypto detective to prove his innocence.
In the early hours of Thursday, the rapper claimed to have taken control of his accounts and the memecoin. Additionally, he distanced himself from the alleged serial scammer. However, ZachXBT x.com/zachxbt/status/1796074631410893180″ target=”_blank” rel=”nofollow”>shared Some screenshots of a conversation between Lil Pump's team and the person managing the memecoin launch.
According to the footage, Pump's team was unaware of Arora's history, but as the investigator explained, “he was still partially paid for the scam.” Furthermore, his team hid the paid promotion tag, which is an x requirement. ZachXBT noted that the rapper also did the same in 2022.
Throughout the night, the internet sleuth listed several other artists who joined the headlines of crypto scams. The list includes American rapper MoneyBagg Yo, Trippie Redd and Davido.
Giving scammers a platform
American-Nigerian singer and producer Davido was, along with Lil Pump, the biggest topic on Wednesday night. The singer promoted his Davido token along with figures within the crypto space.
Cryptocurrency trader Ansem held an x Space session with the music producer to discuss his project. According to online reports, the singer disposed of more than half of his stake in DAVIDO during the x session.
look chain x.com/lookonchain/status/1796017849179468116″ target=”_blank” rel=”nofollow”>revealed that Davido earned over 2,783 SOL, worth around 473,000, after selling 121.8 million DAVIDO tokens. According to the publication, the singer received 7.5 SOL as initial capital, which he used to purchase 20.3% of the total supply of memecoin.
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The community was dissatisfied with the cryptocurrency trader's involvement in the incident. As a result, several community members raised an important discussion. Many pointed out that platforms featuring people, famous or not, who seemingly have no real interest in the space are predatory and dangerous.
As x.com/zachxbt/status/1796064023286268256″ target=”_blank” rel=”nofollow”>he pointed According to ZachXBT, “running the spaces gives them credibility” and gives “celebrities the platform to do this to people repeatedly.”
Featured image from Unsplash.com, chart from TradingView.com
