The recent wave of celebrity-backed tokens launched last week has faced significant declines, with many dropping over 66% from their peak values. Notably, tokens such as JENNER, DAVIDO, and RICH have seen substantial losses. However, one token has defied the trend, continuing to reach new all-time highs.
Caitlyn Jenner’s Token: A Meteoric Rise and Fall
One of the most notable celebrity token launches was “JENNER” by American media personality Caitlyn Jenner, which debuted on May 28. Initially, there was widespread speculation online about whether the token was genuinely endorsed by Jenner, with some even suggesting it was part of a deep fake X account hack.
Despite the confusion, JENNER quickly soared, hitting a $30 million market cap within the first 24 hours. Once Jenner confirmed the token’s legitimacy, it seemed poised for success. However, it has since fallen 79% from its all-time high of $0.0061, currently holding a $6.1 million market cap. Over the past week, the token has seen relatively stable pricing without significant swings.
| Token | Peak Price | Current Price | Peak Market Cap | Current Market Cap | % Decline |
|---|---|---|---|---|---|
| JENNER | $0.0061 | $0.0013 | $30 million | $6.1 million | -79% |
| DAVIDO | $0.0033 | $0.0011 | N/A | N/A | -66% |
| RICH | N/A | N/A | $678,000 | N/A | -90% |
| MOTHER | $0.1272 | – | $134 million | – | N/A |
The “RICH” token, launched by American rapper Rich the Kid, also attracted significant attention from memecoin traders upon its release. Despite the initial buzz, the token’s market cap has since plummeted to $678,000.
Similarly, the token “Timeless Davido” (DAVIDO), launched by Nigerian singer David Adedeji Adeleke, has experienced a steep decline. After reaching a peak price of $0.0033 on May 30, it has fallen over 66% to $0.0011.
Other celebrity-related tokens have not fared much better. Tokens linked to boxing legend Floyd Mayweather and American rappers Moneybagg Yo (SPEAK) and Trippie Red (BANDO) have all seen declines of around 90%.
Iggy Azalea’s MOTHER Token: A Notable Exception
Amid the broader downturn, the MOTHER token launched by rapper and model Iggy Azalea on May 29 has been a standout. Unlike other celebrity tokens, MOTHER has continued to perform exceptionally well, reaching a $134 million market cap on June 6 and setting a new all-time high price of $0.1272.
This success came shortly after a related but controversial token launch. Sahil Arora, a known memecoin collaborator, had launched the Iggy Azalea (IGGY) token, which failed to attract significant attention from memecoin traders. Following this, Arora was suspended on the social media platform X, and Azalea’s MOTHER token emerged as the dominant project.
The recent celebrity memecoin craze has sparked various reactions in the crypto community. Hayden Adams, the inventor of the decentralized exchange Uniswap, shared his perspective on the trend. He mentioned that while he had “no issues” with the rise of celebrity-backed tokens, he suggested that celebrities should use their profits for positive causes.
“Iggy could have responded positively and used profits to donate to a social cause or something,” Adams commented.
Ethereum co-creator Vitalik Buterin echoed similar sentiments, arguing that financialization in the crypto space is only justified if it brings societal value. He highlighted purposes such as improving healthcare, supporting open-source software, and promoting art and creativity as worthwhile endeavors that can benefit from crypto initiatives.
Market Dynamics
The volatile performance of celebrity-backed tokens underscores the speculative nature of these assets. While initial hype can drive significant market interest and capitalization, sustained success often hinges on more fundamental factors, including the utility of the token and the credibility of the project.
Investors should exercise caution when considering such tokens, as the rapid rise and subsequent fall in prices can result in significant financial losses. The contrasting performance of the MOTHER token compared to others highlights the importance of individual project dynamics and market reception.
The launch of celebrity-backed tokens has brought both excitement and caution to the cryptocurrency market. While most have seen significant declines, Iggy Azalea’s MOTHER token remains a rare success story. As the market continues to evolve, the long-term viability of these tokens will depend on their ability to provide real value and maintain investor confidence.
Featured image credit: Freepik