- After launching at a market cap of worth less than $50,000, the market cap jumped to $16.6 million.
- Allegations of insider trading appeared but 2.4 million MOTHER tokens have been burned.
As an experienced analyst, I’m keeping a close eye on the latest developments in the crypto market, particularly when it comes to celebrity-backed projects. The rapid rise and subsequent controversy surrounding Iggy Azalea’s MOTHER token is a reminder of last year’s memecoin craze.
In 2021’s fashion, celebrities are rushing to join the crypto craze. Unlike last year when Non-Fungible Tokens (NFTs) dominated the limelight, this time around, they are introducing tokens based on memecoins with their names attached.
Iggy Azalea recently entered the scene with her new cryptocurrency token named “MOTHER.” According to DEXSceener’s reports, this token experienced an astonishing surge of approximately 230 times its initial value shortly after its launch.
Azalea follows in Jenner’s shoes
As a crypto investor, I’d describe it this way: The MOTHER token holds the second spot among Solana’s [SOL] celebrity-backed cryptocurrencies, following Caitlyn Jenner’s entry into the market. At present, the token boasts a market capitalization of approximately $16.6 million.
As a researcher, I discovered that the price had undergone a significant surge, amounting to $0.016, which represents an impressive 81.34% price hike in just the previous 24 hours. Yet, what caught my attention while examining AMBCrypto’s findings was the common origin of JENNER and MOTHER. Both cryptocurrencies were the brainchild of the same influential marketing figure.
Based on our findings, Sahil Arora admitted responsibility for the deployment. Meanwhile, Iggy Azalea and Caitlyn Jenner neither confirmed nor refuted the allegations.
As a crypto investor, I’ve noticed that memecoins, regardless of which one we’re talking about, have had their fair share of controversy. For example, when JENNER was launched, there were allegations made against Arora. The American media personality publicly accused him of attempting to “scam” her and the entire community.
For Australian rapper Azalea as well, the circumstances bore resemblance to that scenario. Yet, it appeared that the plan was devised with the intention of generating extensive publicity, thereby encouraging more sales.
Insiders may have put retail in trouble
Despite MOTHER token bringing profits for numerous investors, accusations of insider trading have surfaced. The most prominent accuser is Bubblemaps, a renowned blockchain data visualizer.
As a researcher studying insider trading, I would describe it as follows: When individuals possess exclusive, confidential information about a project or company, they may leverage this insider knowledge to make informed transactions in the market before this information becomes publicly available.
In most instances, insiders acquired approximately 20% of the MOTHER token during its launch, which typically comes at a cost for traders. (Or: Insiders obtained about 20% of the MOTHER token supply when it was initially released, often resulting in disadvantages for traders.)
As a researcher, I’ve discovered an intriguing detail in my investigation. Prior to Azalea making her public announcement, those implicated in the situation had already disposed of approximately $2 million worth of the token.
Giving more information about the incident, Bubblemaps explained that,
Expert: “Invincible on pump.fun, also recognized as Wallet JEEt3D1, acquired a substantial amount, approximately 109 thousand tokens named MOTHER, representing around 10% of the total supply. Later on, Invincible divided this holding into seven separate wallets. As of now, about 89 thousand of those tokens have been sold from these wallets.”
The wallet reported earning $1.4 million in actual profits and an additional $400,000 in potential profits at the time of reporting. Azalea has yet to comment on these allegations.
Will burning tokens save MOTHER?
The representative of the MOTHER token’s administrative X handle announced that they were destroying a portion of the existing token pool. In the cryptocurrency realm, this process referred to as “burning,” reduces the overall supply and adds scarcity to the digital currency.
As a result, the value of MOTHER tokens becomes more valuable with rising demand, based on Solscan’s reported data of 2.46 million tokens being destroyed.
As an analyst, I would interpret this scenario as follows: Should a larger portion of the coin’s supply be taken out of circulation through burning mechanisms, the resulting scarcity could potentially drive up the price significantly. This price surge might further bolster the speculation that the memecoin in question could reach a market capitalization of $50 million.
As a researcher examining market trends, I cannot guarantee that a token with previous green candlestick patterns will maintain its significance in the future.
Some people believe that the participation of celebrities in launching tokens is a clear indicator of the end of the current market cycle. Contrarily, others view it as just a passing trend that will eventually die down.
Regardless of your perspective, retail investors should exercise caution. The majority of these tokens lack practical applications or underlying value.
An additional possibility exists: More tokens akin to MOTHER could emerge, potentially shifting the liquidity in Iggy Azalea’s project. Consequently, the value of the cryptocurrency may decrease if this happens.
Read Solana’s [SOL] Price Prediction 2024-2025
Based on the principles of supply and demand, there is a strong possibility that MOTHER’s price may come to a standstill. However, it remains to be seen if the token will defy this trend or not.
But as of now, more tokens deployed in the name of celebrities could be on the rise.
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2024-05-31 23:04