Why Celebrity Crypto Coins Are Doomed To Fail and How To Short Them

Table of Contents

Join our community

Estimated reading time: 3 minutes

Why Celebrity Crypto Coins Are Doomed To Fail and How To Short Them

In recent months, the cryptocurrency market witnessed an influx of celebrity-backed tokens, most of them launched on the Solana blockchain. These memecoins are endorsed by celebrities and are backed by nothing more than their promise and name association. 

This article delves into a critical perspective on these celebrity coins, and offers insights into why some investors can benefit by shorting these coins into the ground. 

What Happened After the Launch of 30 Celebrity Coins on Solana?

In June, 30 celebrity coins made their debut on the Solana blockchain. Just a month into their launch, the performance of these tokens has been less than stellar. On average, each coin is down 94% from its all-time high, with some experiencing even steeper declines. In an analysis made by SlorgoftheSlugs we see the following trends of celebrity memecoins; 

  • Market Performance: Nearly half of these tokens are down over 99%, with seven others down more than 90%.
  • Market Cap Concerns: Twenty-two of the thirty tokens now have a market cap under $1 million.
  • Community Activity: Many celebrities haven’t tweeted recently about their associated tokens, with some having deleted their tweets or had their accounts hacked.
  • ‘Top’ Performer: Even the best-performing token (Andrew Tate’s DADDY) has lost over 73% of its value.

A few celebrities continue to actively promote their tokens, though with mixed success. The broader crypto community remains skeptical, if not completely negative towards them.

Negative Value of Meme Coins Can Mean Real Value When Shorting Them

The celebrity crypto coin scene has been a rollercoaster, to say the least. What started as a glitzy parade of big names and even bigger promises has turned into a sobering lesson for many investors. 

Looking at the data, it’s clear that most of these celebrity-backed coins have taken a nosedive. We’re not talking about minor dips here – we’re seeing drops of 90% or more across the board. 

Some say these coins are not even worth researching but if we look at it from the other side this downturn is not purely negative. Because with this volatility comes an opportunity. As high-cap meme coins have perpetual contracts available. Which means that sharp investors can potentially profit from price swings in either direction, turning the extreme volatility into a trading advantage. If you want to learn more, visit our guides on MEXC here

Conclusion

The launch of 30 celebrity coins on Solana last month and one way ticket to zero has sparked many discussions regarding the viability of celebrity memecoins future. We can not highlight the risks and the often short-lived nature of their valuations, and can only say that the correct strategy is to short these into the ground, if some exchanges permit.

Short Celebrity Coins on MEXC

Crypto_Library_logo_512x512_svg

Disclaimer: Trading and investing in cryptocurrencies (also called digital or virtual currencies, altcoins) involves a substantial risk of loss and is not suitable for every investor. You are solely responsible for the risk and financial resources you use to trade crypto. The content on this website is primarily for informational purposes and does not constitute financial advice.