Meme Coins of celebrities have recently received high attention, and figures like Elon Musk, Donald and Melania Trump, and Javier Milei have been driving significant traffic to this speculative trading area. The meme coin craze, which was once limited to artists and influencers, is now receiving the attention of political leaders.
In an interview with BeInCrypto, industry leaders from BingX, Titan, Bitget, and Trust Wallet discussed the general appeal of meme Coins, related risks, fundamental advantages, and future prospects in the broader cryptocurrency field.
Celebrities Promote Meme Coins
Meme Coins are generating significant interest in the cryptocurrency market and attracting the attention of investors. With high accessibility to both cryptocurrency users and non-cryptocurrency users, and a simple launch process, the number of Tokens supported by celebrities has increased.
"At best, meme Coins capture a unique cultural vibe and trigger contagious community virality. Celebrities amplify this effect by adding instant mass appeal and social media buzz. This effectively ignites the tinder of virality." – Eowyn Chen, CEO of Trust Wallet
When regulatory hurdles hinder the promotion of cryptocurrency projects, meme Coins have emerged as a practical marketing alternative for developers. Prominent experts like cryptocurrency analyst Miles Deutscher have also noted that meme Coins initially had a particular appeal to small retail investors.
Deutscher argued that the rise of platforms like Pump.fun could be interpreted as a reaction to the strong crackdown on the cryptocurrency industry by former SEC chairman Gary Gensler. According to him, Pump.fun was created as a direct response to the difficulty of launching fair projects.
Chen also agrees with this analysis to some extent.
"On one hand, strict regulations have forced many projects that could have been launched as 'serious' utility Tokens to be reborn as meme Coins. These Tokens offer unpredictable price volatility to attract speculators. Exchanges are rushing to list them. On the other hand, meme Coins leverage a rebellious and humorous cultural vibe." – Eowyn Chen
Chen also provided a historical and sociological explanation for the increasing trend of meme Coins.
Generational Trends... The Rise of Meme Coins
In the 1990s, playwright William Strauss and historian Neil Howe created the term known as the Strauss-Howe generational theory. According to this theory, the development of human society is closely linked to generational changes and follows a repeating pattern of around 80 to 100 years.
This cycle is characterized by four generations vying for power, which triggers turning points that force social and political reconfiguration. Inspired by this theory, writer G. Michael Hoffmann developed a quote representing these four cycles.
"Hard times create strong men. Strong men create good times. Good times create weak men. And, weak men create hard times."
According to Chen, we are currently in the final stage of weak men creating hard times, and we are using meme Coins to mock them.
"According to the Strauss-Howe generational theory, we are in the 'fourth turning'. People expect economic stagnation, the threat of war, and a general 'what's the point?' attitude. When life feels like an endless lottery, why not bet on a coin as unpredictable as your roommate's cooking? Meme Coins allow people to sneer at the system with their rude and joker-style humor, while secretly hoping for a visionary revival. They are not just investments, but a way to express frustration, take risks, and even find a bit of community spirit. All with a wink and a nod." – Eowyn Chen
While these meme Coins may provide an opportunity to briefly escape the gloomy future, the question remains whether they represent the potential for long-term investment or are simply a passing fad.
Public Figures Find Meme Coins Appealing
Several public figures have discovered the appealing prospects of meme Coins. Their accessibility and ease of use have led famous personalities to launch their own Tokens.
"The surge in meme Coin popularity coincides with the rise of decentralized platforms and SNS-inspired applications. This allows anyone with a wallet to easily launch Tokens. Celebrities have seen this as an opportunity to monetize their followers and strengthen engagement with their fans." – Vivien Lin, Chief Product Officer at BingX
Considering that the younger generation is the most active user of meme Coins, celebrities can use this type of Token launch to connect with the majority of their fan base.
"Now, add a celebrity's sparkle to the mix. When a public figure launches a meme Coin, they can think in simple terms. This can signal to a young, digitally-savvy audience that they are cool. Of course, the Token may appear to grow in unimaginable speed and value, which provides a lot of financial incentive." – Eowyn Chen
In fact, the current celebrity meme Coin craze is not particularly original. It is similar to past cryptocurrency hypes, using different strategies to achieve similar results.
"This celebrity meme Coin trend is similar to the previous NFT trend. It's like when celebrities launched collections, promising exclusive experiences for their fans. Both trends show how public figures are using technology to enhance fan engagement and create new forms of connection." Lin added.
However, there is a noticeable difference between meme Coins launched by influencers or pop artists and those launched by political leaders, especially when they are the sitting President of a country.
Meme Coins, Trackers of Public Sentiment
When pop star Iggy Azalea launched the MOTHER Token, its peak was $136.6 million. Meanwhile, Hayley Welch's HAWK Token reached a maximum of $500 million.
However, when political figures like the US President couple and Argentine President Javier Milei launched Meme Coins, their market cap peaks reached billions of dollars.
"These coins were unique events, and replicating them would be nearly impossible. TRUMP's success was partly driven by the high interest surrounding Trump's re-election and global recognition. It is very rare to see a Token exceed a $3 billion market cap within a month of trading," said Lin.
The trading activity of Meme Coins launched by political figures can be useful in reflecting the broader public sentiment and alignment with those figures.
"Such rapid surges are exceptional, but they emphasize how quickly the Crypto market can reflect trends. It's like investors 'voting' through their trades. This makes Cryptocurrencies a useful tool for identifying new social and financial sentiments," Lin explained.
On this point, Chris Cheng, the founder of the Solana exchange platform Titan, added:
"The key driver behind the current popularity of celebrity Meme Coins is the high interest surrounding the US elections. People wanted to participate in political action, and the TRUMP and MELANIA Meme Coins provided them with an easy and quick way to do so."
However, despite the initial price spikes, the long-term viability looks bleak if there is no solid roadmap accompanying the Token launch.
Fleeting Success
The rise of celebrity-linked Meme Coins is driven by their influence, market speculation, and cultural trends. The initial excitement generated by these coins attracts investors, and this cycle repeats as new celebrity-backed Tokens emerge. This is appealing to both early investors and trend followers.
However, celebrity Token launches have repeatedly resulted in short-term success.
"Celebrities are aware of the short-term nature of trends in the creator economy today and recognize the demand, supporting these Tokens. But the long-term success of these coins is uncertain. This is because they heavily depend on sustained public interest and market speculation," said Alvin Khan, Chief Operating Officer of Bitget Wallet, in an interview with BeInCrypto.
According to him, the viability of Meme Coins, regardless of celebrity support, is clear.
"There is little evidence that these coins can maintain their price or popularity over time. Generally, there is a price decline after a rapid price increase. As seen with recently launched coins. For these coins to evolve into more stable investments, they need to develop strong community engagement and broader utility. Without such developments, celebrity-backed Meme Coins are likely to maintain their speculative and short-term nature," - Khan
According to him, there are many examples that can support this.
"I think it's the same for all Meme Coins. They may rise in the short term, but without any use cases or a strong supporter base, they disappear. The Memes that survive have teams with strong narratives. Dogecoin still exists because of Elon Musk's continued support and backing. WIF still exists because it's a status symbol of sorts as an OG on Solana. But PNUT didn't because no one continued to build the narrative behind it. It was just short-term hype," he said.
In fact, analyzing why other Meme Coin projects have succeeded can reveal why celebrity projects have failed.
Lessons from Successful Projects
Dogecoin started as a joke at the end of 2013. Founders Billy Markus and Jackson Palmer intended it as a lighthearted alternative to serious Cryptocurrencies. It quickly gained popularity, inspired by the 'Doge' meme. According to the official website, Dogecoin exceeded Bitcoin's trading volume within 2 weeks.
After Markus and Palmer left in 2014, a core development team took responsibility for maintaining and advancing the Cryptocurrency. Starting as a humorous endeavor, Dogecoin has built a substantial and dedicated community.
The success of Shiba Inu Coin reflects the success of Dogecoin. Its popularity is largely due to its integration with internet meme culture. Viral moments like celebrity Tweets, influencer support, and widespread social media campaigns have significantly boosted its popularity.
"Dogecoin and Shiba Inu have developed communities, published whitepapers, and contributed to charitable activities like dog shelter programs, Olympic sponsorships, and clean water projects. They realized their Tokens were gaining more market share," - Lin
Celebrity Meme Coins that learned early on to integrate real-world utility into their products have also achieved long-term success.
"Iggy Azalea's MOTHER Token maintained engagement through events, giveaways, and partnerships for Token holders," - Lin
However, this was not the case for most celebrity Meme Coins.
"In contrast, celebrity Meme Coins receive immediate attention from the top. They gain quick virality and buzz, but lack the deep and sustained community support necessary for long-term success. In summary, celebrity-backed Tokens get instant attention, but lasting value comes from genuine, grassroots participation," - Chen
Considering this reality, celebrity Meme Coins now pose more risks to investors.
Associated Risks
The key risks associated with celebrity Meme Coins include pump-and-dump scams and rugpulls.
Here is the English translation of the text, with the specified terms translated as instructed:"Investing in Meme Coins endorsed by celebrities carries similar risks to those found in the broader Meme Coin space. However, this can sometimes be amplified by the additional attention. For example, pump-and-dump scams remain a major risk. If a celebrity's endorsement causes a price spike due to social media hype, the rally can quickly dissipate once the initial excitement wears off." - Chen, as told to BeInCrypto.
When Javier Milei launched LIBRA earlier this month, insider traders were among the first to purchase the Token when the price was low. Within an hour of launch, LIBRA reached a market capitalization of $4 billion.
As the price spiked, insiders sold most of the Token supply, causing the price to crash rapidly. Meanwhile, smaller investors lost over $250 million. This incident serves as an important example of how such schemes can have the biggest impact on inexperienced investors.
"Meme Coins endorsed by celebrities follow a similar pattern to the past cryptocurrency trends driven by influencer hype. However, the key difference lies in the target audience. Previous Meme Coin waves were often promoted by crypto-native figures like Elon Musk or well-known developers. Today's celebrity Meme Coins aim to attract a broader audience more familiar with the endorsing celebrity than the crypto space itself." - Kan explained.
Additionally, celebrity involvement significantly increases the risk, as their influence can drive substantial traffic and amplify potentially disastrous outcomes.
Legal and Ethical Issues
Backlash is greater if celebrities become embroiled in Meme Coin-related scam schemes. After the rapid rise and fall of LIBRA, Milei has faced over 100 legal complaints in Argentina, and opposition leaders have threatened to impeach him.
Haliey Welch's launch of the Hawk Tuah Meme Coin ended in a similar situation. After reaching a $500 million market cap, the Token crashed within 20 minutes.
"The ethics of celebrity-endorsed financial recommendations are facing strong criticism. Investors often don't know the true intentions of the team behind these Tokens. In the case of Haliey Welch's Hawk Tuah Token, allegations of fraud and deceptive practices led to the project's rapid collapse. Welch's fanbase was primarily non-crypto native, so many investors felt misled." - Lin explained.
In response, several legal actions have been taken against Welch.
"Consider the aftermath of the Hawk Tuah incident. Investors have filed lawsuits against her, and there are reports of an Interpol investigation." - Chung explained.
In response, industry experts expect regulators to increase oversight of Meme Coins.
Regulatory Oversight, Investor Protection
The chaos surrounding several celebrity Meme Coin launches has set an important precedent for how regulators and the industry will address these issues.
"As Meme Coins and celebrity endorsements receive more attention, regulators are likely to increase their oversight. Regulators may start classifying such endorsements as market manipulation or fraudulent activity, especially in light of the ongoing investigations into cryptocurrencies and celebrity promotions. This could lead to stricter guidelines on disclosures and anti-fraud measures. While the regulatory environment is still evolving, more stringent regulations could dampen the popularity of celebrity-endorsed Meme Coins." - Kan, explained to BeInCrypto.
There are also steps individual investors can take to minimize the risks.
"Education is key. Whether a Token is celebrity-endorsed or not, users should investigate the Token's origins, tokenomics, and community engagement. If a Token heavily relies on one person's influence without clear utility or decentralization, that can be a red flag. Additionally, Meme Coins, especially those driven by celebrities, are highly speculative, so people should not invest more than they can afford to lose." - Chen
Chang agreed with this last point and added:
"Diversifying information sources is also an important part. Being more connected to Crypto Twitter can help investors stay on top of news and narratives."
Meanwhile, portfolio diversification is essential to reduce excessive exposure to Meme Coin investments.
"Diversifying investments and not putting more into these Coins than you can afford to lose can help mitigate the risks. Monitoring the market and being aware of potential changes in prices and high interest can also help avoid significant losses." - Kan
However, long-term viability should depend on Meme Coin projects building a solid foundation, rather than just investors reducing their risks.
The Future of Celebrity Meme Coins
Industry experts unanimously agree that community and utility are the key factors determining the future success of celebrity Meme Coins. Without these, they will fail, and small investors will bear the brunt.
"Celebrity Meme Coins are no different from other Meme Coins. If the celebrity can build a sufficient following and maintain the narrative around the Meme Coin, the Token will survive. Otherwise, it will disappear like most Meme Coins." - Chung
This will determine the project's success or failure.
"As more negative narratives accumulate around the collapse of celebrity-backed Coins, ethical and regulatory challenges may prevent further celebrity involvement. The future of these Coins will depend on whether they can provide a sustainable community and utility, or if they remain trapped in short-term hype." - Kan
In the end, the fate of the celebrity meme Bit will be revealed only with time.
