🤑 Clout Coins: Fame for Sale! 🤑

And it’s not just politicians getting in on the fun.

Internet sensation Hailey Welch got caught in a pump-and-dump storm when a token launched in her name – without her say-so – shot up before crashing down. Then there’s Kanye West, whose crypto journey was a rollercoaster, warning about fake Ye tokens, teasing “Swasticoin,” and then deleting everything amid rumors of a crypto scam ring taking over his social media.

These aren’t your grandpa’s crypto ventures with long-term plans. They’re high-stakes gambles riding the waves of fame and speculation. Peter Kris, CEO and Co-founder of Gasp, hit the nail on the head when he told AMBCrypto,

“The value of these celebrity-linked memecoins is mostly hot air and speculation, not real use or innovation. They ride on the coattails of popularity, but with so many popping up, their future’s as shaky as a three-legged chair.”

According to Kris, these tokens follow a predictable loop of hype and crash, creating a flash flood of liquidity and engagement, but not much else.

“While some celebrity memecoins bring new folks to crypto, their speculative nature – often a pump-and-dump dance – might scare them away for good.”

The Meme Mutation Lifecycle

These memecoins follow a script you could set your watch to.

A celeb or pol gets tied to a token – through endorsement or just by being famous – and retail speculation goes wild. Insiders and whales load up early, watch the price soar as FOMO kicks in, then liquidity dries up, insiders cash out, and retail traders are left holding the bag – or rather, the bagel.

LIBRA‘s collapse followed this script to a T. On-chain analysis showed big wallets bailing out just before the price plummeted, suggesting a well-orchestrated dump by early backers.

This ain’t about utility or innovation. It’s about eyeballs.

In 2025, attention is the most liquid asset around. When influence can be tokenized, the line between financial speculation and cultural loyalty disappears. What was once a joke is now a market mover, and the question isn’t if more tokens will pop up – it’s how far they’ll go before regulators (or reality) step in.

But not all memecoins are doomed to be flash-in-the-pan scams. Kris told AMBCrypto that structured launches and actual use could change the game.

“I believe there’s a way to launch a memecoin without the pump-and-dump song and dance. For instance, there were popular Balancer bootstrapping pools that enforced decreasing prices algorithmically in the beginning, avoiding the extractive nature of memecoin launches.”

But legitimacy is a slippery fish. The mere presence of celebs gives projects a sheen of credibility – one that might be as thin as tissue paper. As Kris warned,

“With celebs launching their own memecoins, projects often look more legit than they are. Many follow the same pattern of big hype, rapid price spikes, and inevitable crashes. The marketing tactics, especially celeb endorsements, create a false sense of trust and can lead new investors astray.”

In a space where speculation trumps fundamentals – pun very much intended – the real winners aren’t the traders chasing the next big thing. They’re the ones making the rules.

Memecoins and the SEC: A Regulatory Tightrope Act

Regulators have been playing catch-up for years, but with pols and celebs minting memecoins left and right, the pressure’s on. The SEC, CFTC, and global watchdogs are now facing a question that once sounded crazy – Are these tokens financial instruments or just internet circus acts?

The SEC has laid the groundwork for a crackdown. In 2022, Kim Kardashian got a $1.26 million fine for promoting a token without disclosing her $250,000 payday. By 2024, the agency had stepped up enforcement, bringing 33 crypto-related actions – 73% alleging fraud and 58% involving unregistered securities.

Yet, despite these moves, there’s been a shift lately. Under the current Trump administration, the SEC has started to tread more lightly, even dropping a high-profile lawsuit against Coinbase – a surprise win for the industry.

The SEC’s latest ruling – that memecoins aren’t securities – has opened the floodgates.

Joe McCann, Founder, CEO, and CIO at Asymmetric, sees this as a big moment. In an exclusive with AMBCrypto, he said,

“The SEC calling memecoins non-securities is a no-brainer. I was the first institutional investor to trade them, catching Bonk’s 70x run in ’23 and watching Dogecoin lead in ’24. They’re cultural assets – not your grandma’s finance instruments.”

McCann also noted that with Trump’s $75B coin launch bringing in over a million users, any public figure can now jump in without regulatory backlash. The current U.S. administration’s pro-crypto stance is cutting red tape, boosting liquidity, and speeding up adoption.

“Could it lead to exploitation? Sure. Some will flop – like TRUMP’s 83% drop – but the market will sort out what sticks.”

Think about it – The market sorts what sticks.

Now, that could be the perfect tagline for the crypto industry, right?

Meanwhile, regulations outside the U.S. are a mixed bag. Europe‘s MiCA legislation will enforce stricter compliance, while Hong Kong is positioning itself as a crypto-friendly hub with clearer licensing. In less regulated places, memecoins are running wild, with little recourse for investors left holding the bag. For those who see memecoins as a legitimate asset class, the biggest danger is unchecked manipulation. According to Kris,

“The biggest risk with celebs launching or endorsing memecoins is market manipulation. High-profile endorsements can quickly create artificial demand and lead to speculative bubbles. Often, early buyers profit at the expense of later investors, leaving them exposed to big losses.”

Regulatory steps could change that. Better oversight of marketing tactics and more transparency around financial interests of endorsers could reduce risks.

“Increased oversight of marketing tactics and greater transparency around the financial interests of those endorsing these coins could help protect retail investors. This approach could prevent people from being misled by hype-driven investments and reduce the risk of scams, creating a safer market for everyone.”

For now, the line between marketing and market manipulation is as thin as a tightrope. Without decisive action, it’s only a matter of time before another scandal forces regulators’ hands. Given the evolving nature of this space, will it be too late to step in?

Show Me the 🤑 Memecoins!

Memecoins are becoming clout-powered cash