Memecoins Backed by Celebrities Plummet: Crisis Deepens
A significant number of memecoins promoted by social media figure Andrew Tate have crashed to near-zero, igniting concerns of insider trading. Tate, previously accused of manipulating the cryptocurrency market, joined the memecoin frenzy on the Solana network in June, endorsing over ten tokens. However, as reported by Bubblemaps on October 19, most of these coins have since lost 99% of their value.
Tate notably purchased $GER (Germany Token), holding 30% of its supply, which has now plummeted 99% in just two months. Alongside Tate, other celebrity-backed tokens, including those supported by 50 Cent, Caitlyn Jenner, and Iggy Azalea, have similarly nosedived.
Many of Tate's other endorsed tokens, such as FTRISTAN, TopG (TOPG), RNT (RNT), and Daddy Tate (DADDY), have also seen declines exceeding 90%. This trend follows a broader pattern: in June, over 30 celebrity-backed tokens on Solana experienced a staggering 73.23% drop.
Additionally, UFC fighter Khamzat Chimaev's Smash (SMASH) token has faced scrutiny, with reports revealing that 78% of its supply was purchased by wallets linked to the project team.
Overall, the vast majority of celebrity-endorsed memecoins have fallen by at least 66% within their first week of launch, including tokens like Caitlin Jenner (JENNER), Timeless Davido (DAVIDO), and Rich The Kid (RICH).
As this crisis unfolds, the integrity of celebrity endorsements in the crypto space faces increasing scrutiny.
