Celebrity Meme Coins Plummet 78% as Investors Shift Focus

Celebrity-endorsed meme coins have experienced significant downturns, with some losing over 80% of their value from all-time highs (ATH).

The report comes following revelations that crypto investors may be shifting focus towards projects with real-world value.

Celebrity Meme Coins Fall Nearly 80%

According to data from Messari, prominent tokens such as MOTHER, DADDY, TRUMP, MELANIA, and JAILSTOOL have seen an average decline of 78% since their peak valuations.

MOTHER and DADDY tokens are associated with Australian rapper Iggy Azalea and social media personality Andrew Tate, respectively. Both tokens reached their ATHs in June and July 2024. However, they have failed to recover since, with each plummeting by more than 80%.

Meanwhile, the TRUMP coin has decreased by over 60%, while the MELANIA token has suffered a decline exceeding 80%. The TRUMP coin recently hit a new all-time low amid escalating geopolitical tensions, including a tariff war initiated by the US President. The token had already recorded a 72% drop from its ATH just a week prior.

Additionally, the coin’s open interest—a measure of the total number of outstanding derivative contracts—has declined. This indicates waning investor interest and potential market exit.

Open interest is a crucial metric in the crypto market. Declining open interest often signals that traders are closing their positions, interpreted as a lack of confidence in the asset’s future performance. This trend suggests investors are increasingly cautious about the TRUMP coin’s prospects.

Other celebrity-associated tokens have also faced challenges. Ivanka Trump, who denied any association with cryptocurrency, disavowed the IVANKA coin. JAILSTOOL meme coin has also recorded a significant drop.

Dave Portnoy, founder of Barstool Sports, played a pivotal role in promoting the JAILSTOOL meme coin. His endorsement led to an astonishing overnight surge in its market capitalization by 100,000%. Despite the downturn, Portnoy remains committed to the token.

“…and regardless of what I do, I will continue to root for JAILSTOOL and honor every commitment I made. It goes to a $200 million market cap again, I’ll dump $100,000 into it. I will not sell a dime until 1 billion. I am still holding it all. I could have sold at 6 million. Didn’t,” Portnoy shared.

The decline of celebrity-endorsed meme coins mirrors the inherent risks in speculative investments. It also aligns with a recent report, which revealed the meme coin mirage. According to the report, 76% of influencer-promoted meme coins lose over 90% of their value within three months, leaving investors in losses.

Investors Pursue Tokens With Actual Value

In response to meme coins’ volatility and associated risks, many crypto investors are shifting their focus toward altcoins with tangible real-world applications.

Projects emphasizing decentralized finance (DeFi) and the tokenization of real-world assets (RWA) are gaining traction. This trend reflects a growing preference for investments that offer practical utility and long-term value over speculative ventures.

“Technically innovative launches are getting hype again…It’s not just your Degen monkey brain blindly aping into meme coins or simping for a new Celeb Coin – your analytical & research skills can be put to action again,” DeFi expert Ignas shared recently.

Meanwhile, this data follows reports of concerning developments around celebrity meme coins. For instance, Senator Elizabeth Warren recently called for federal scrutiny of the TRUMP and MELANIA coins. As BeInCrypto reported, she raised concerns about potential ethical violations and the need for regulatory oversight.

The hype surrounding the TRUMP meme coin has also attracted malicious actors. Scammers exploited the frenzy to orchestrate a rug pull, defrauding investors of approximately $857 million. Moreover, blockchain analysis revealed that 94% of TRUMP and MELANIA tokens are concentrated in 40 wallets. This indicates a high level of centralization and potential market manipulation.