Experts believe that the trend of celebrities promoting crypto projects typically signals a quick cash grab rather than a genuine investment opportunity.
The surge in celebrity-backed tokens, fueled by the frenzy for meme coins, has polarized the community.
One such meme coin that has captured the market attention is that of American TV personality Caitlyn Jenner’s JENNER token. Jenner launched 12 meme coins on the Solana blockchain within a mere four days, reaping profits of 2,381 SOL, which is equivalent to $405,000.
$405K Earnings in Just 4 Days
Lookonchain’s latest findings reveal that Jenner’s approach included launching tokens like JENNER, buying large amounts, and quickly selling them for significant profits. For instance, 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 trail of transactions led Lookonchain investigators to uncover 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 potential hack. With meme coin mania gripping the industry amid a broader recovery in prices, several experts have highlighted the pitfalls inherent in celebrity-endorsed tokens, which often attract unsuspecting traders only to leave them financially depleted.
Even seasoned traders, like one who previously made $3.7 million in profits within five days trading another token, fell victim to the allure of Jenner’s coin, suffering losses amounting to 785 SOL, equivalent to $133,400, within a single day.
As previously explained by CryptoQuant’s Ki Young Ju, such episodes not only erode trust within the cryptocurrency community but also overshadow the genuine innovations pursued by legitimate projects.
Celebrity Cash Grab Alert
A market player under the pseudonym ‘Cold Blooded Shiller’ pointed out that historically, celebrity-backed projects have failed, with many of them quickly losing all value, some within hours or days of their launch, and very few lasting beyond a few months.
The investor advised followers to view celebrity endorsements of meme coins as opportunistic “cash grabs,” similar to previous trends like simply mentioning “crypto” during past market cycles or “NFTs” in more recent times.
He said that celebrities latch onto these buzzwords to capitalize on the hype and enthusiasm surrounding them, prompting a snowball effect where more people rush to invest in these projects without fully understanding the risks involved.