Will celebrity memecoins DADDY, MOTHER come under SEC’s fire?

As a crypto investor with some experience under my belt, I’ve seen my fair share of market trends come and go. The recent surge in celebrity memecoins on the Solana blockchain has piqued my interest, but also raised some concerns.

There’s been a noticeable increase in popularity for memecoins linked to celebrities, with the Solana blockchain witnessing a considerable surge in usage.

Celebrity-memecoins under the radar?

Some legal specialists have raised concerns that celebrities who have recently endorsed or created memcoins on the Solana platform may be inadvertently breaching securities regulations.

Experts believe that the memcoins endorsed by celebrities are likely to attract scrutiny from the US securities regulatory body.

Remarking on the same, Creo Legal founding director David Chung told a publication,

“Nothing gets the SEC to act faster than shilling a memecoin.”

Talking about Caitlyn Jenner’s JENNER token, he said,

“Caitlyn Jenner may face consequences from the Securities and Exchange Commission (SEC) for offering unlicensed securities without prior registration.”

As a crypto investor, I’ve noticed that regulatory bodies like the SEC have taken a firm stance against some prominent players in the cryptocurrency industry, such as Consensys, Coinbase, and Ripple. Given this precedent, the warnings from lawyers about potential issues with celebrity coins carry significant weight.

Celebrity-memecoin market trends

Among some popular celebrity memecoins like Iggy Azalea’s MOTHER and Andrew Tate’s DADDY, the prices have experienced significant growth. Specifically, MOTHER has seen a rise of 636.91% from its lowest point, while DADDY has undergone a price increase of approximately 115.09%.

Similarly, Caitlyn Jenner’s JENNER also saw a rise of 210.78% from its all-time low price.

At present, the daily charts of all three meme coins displayed red candlesticks as of this writing.

According to CoinGecko’s data, MOTHER experienced a decrease of 4.1%, DADDY saw a larger loss of 13.7%, and JENNER posted the biggest decline at 17.4%.

As an analyst, I’d like to clarify that while some may attribute the recent drop in value to the predictions made by lawyers, this is actually not the sole cause. My weekly chart analysis reveals that the memecoins associated with celebrities were already experiencing a downturn and showing red figures before these predictions were even made. Furthermore, it’s important to remember that this isn’t an isolated event – celebrity-backed memecoins have faced criticism multiple times in the past.

Buterin joins the fray!

In the past month of June, Ethereum co-founder Vitalik Buterin expressed his criticism towards the proliferation of memecoins inspired by celebrities, specifically mentioning the emergence of MOTHER as a concern. He commented on this trend.

I’ve been rather disappointed with “celebrity experimentations” during this cycle. I understand the concept of using finance to achieve goals, but only if those goals hold significant value, such as healthcare, open source software, or art.

He even went ahead and suggested strategies for the enhancement of celebrity memecoins, and noted,

Will celebrity memecoins DADDY, MOTHER come under SEC’s fire?

As a crypto investor, I’ve witnessed an incredible surge in Mother Iggy’s price during that period. It skyrocketed an astounding 1,200% to around $0.20. This remarkable growth resulted in a substantial market capitalization, surpassing the $190 million mark.

These celebrity symbols remain largely unfazed by criticism and persist in their established behaviors.

The market capitalization of Solana’s memcoins remained unchanged at $6.51 billion, defying recent events, following a notable increase of 12% over the past 24 hours according to CoinGecko’s data.

2024-07-10 09:12

Celebrity-memecoins under the radar?

Celebrity-memecoin market trends

Buterin joins the fray!

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