The world of memecoin has entered a bizarre fresh chapter, fueled by bizarre celebrity antics and questionable financial ventures. The latest episode features rapper Lil Pump, whose recent social media activity has left the cryptocurrency community scratching their heads and wondering – is this a stroke of marketing genius or a recipe for financial disaster?
Memecoins: turning up the hype
Lil Pumpknown for his platinum hit “Gucci Gang”, unveiled a fresh tattoo on his forehead, proudly depicting the word “Solana” next to the blockchain platform’s logo. This was not a random artistic choice. This coincided with a flurry of promotional posts for his own Solana-based memecoin, creatively named “lil Pump”.
Taking it a step further, Pump declared himself the “foster child” of the self-proclaimed “memecoin family,” which included celebrities Iggy Azalea (“$MOTHER”) and Andrew Tate (“$DADDY”), who also launched their own tokens Salty. The rapper’s social media blitz included repeated inquiries to major exchanges such as Coinbase and Binance, asking “wen” – crypto slang for “when” – whether his token would be listed.
I sold my Sol. when Binance?
ok: 9vrGUHwsC8LyLjQoh3zJb9S53x7A88u49La63qPB6F5t pic.twitter.com/fdCJHXLhsP
— Lil pompa (@lilpump) June 13, 2024
Pump And Dump is concerned that this will disturb the media hype
While some fans cheered Pump’s entry into cryptocurrencies, seasoned investors were wary. The history of celebrity-backed memecoins is full of failures. Projects promoted by figures such as Kim Kardashian, Floyd Mayweather and even Snoop Dogg have left a trail of disappointed investors and empty pockets.
These ventures often follow a familiar pattern: celebrities utilize their massive following to pump up a fresh token, causing its price to skyrocket. They then withdraw the money just as quickly, leaving investors struggling as the price falls.
Recent events have only fueled these fears. Caitlyn Jenner’s Solana-based “JENNER” token lost value after its creator abandoned the project’s liquidity, essentially robbing investors. This episode is a stark reminder of the inherent risks involved memecoins, especially those powered by the noise of the stars.
Is Lil Pump different?
Lil Pump seems determined to prove his project has staying power. Unlike some of his celebrity peers, he is actively trying to build a community around “lil Pump”. But the tactics raise questions.
I’m quite dissatisfied with the “star experiments this cycle” so far.
“Funding as a means to an end” I can respect if the end is worth it (health care, open source software, arts, etc.). Financialization *as an end product*, 🤮
Ashton and Mila…
— Vitalik.eth (@VitalikButerin) June 5, 2024
The authenticity of his “Solana” tattoo is a matter of debate, with some speculating that it can be easily removed. Additionally, Ethereum co-founder Vitalik Buterin has publicly expressed his disapproval of the celebrity memecoin trend, casting doubt on its long-term viability.
Featured image from Youtube/Lil Pump, chart from TradingView
