Celebrity Memecoins on Solana Have Become a Dime a Dozen This Cycle, but Data Shows Investors Hardly See Returns

Some 30 celebrity memecoins launched on Solana (SOL) last month as popular figures capitalized on the speculative investment culture gripping one of crypto's largest ecosystems.

A recent analysis has revealed that celebrity memecoins launched on the Solana (SOL) network last month have largely failed to generate significant returns for investors, with data indicating an average decline of 94%.

According to a Jupiter exchange team member, memecoins backed by celebrities, such as Andrew Tate, Caitlyn Jenner, Davido, Iggy Azalea, Jason Derulo, and 50 Cent, showed an average decline of 94%. Half of the coins experienced a drop of 99% from their highs within 30 days of launch.

The analysis found that memecoins launched by Tate, Jenner, and Azalea performed relatively better, declining in the 70-80% range. However, other celebrity memecoins faced steeper declines, with some losing over 99% of their value.

The findings highlight the highly speculative nature of memecoins, which often experience extreme volatility and rapid price fluctuations. Despite the potential for quick gains, these tokens are also known for their high risks and susceptibility to manipulation.

A recent study by Bubblemaps also uncovered another interesting aspect of these celebrity memecoin launches. The analysis revealed that a network of insider wallets controlled large portions of the token supplies.

Insiders, defined as anyone with prior knowledge of the launch, including celebrities, team members, or developers, held significant amounts of the memecoins, ranging from 20% to 90% for tokens launched in June. This insider presence could influence the distribution and trading dynamics of these tokens.

The launch of celebrity memecoins on Solana has been a prominent trend in the Web3 space, with celebrities using their followings to promote and capitalize on the hype surrounding these tokens. However, the astronomical price declines and minimal returns for investors underscore the inherent risks associated with these highly speculative ventures.

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