Celebrity-linked meme coins have seen a sharp decline in their market value, falling 78% from their all-time highs, according to data from Messari. These coins, which draw their power from media hype and fame, have fallen dramatically after the wave of enthusiasm that accompanied their launch ended.
The MOTHER cryptocurrency, which is backed by Iggy Azalea, has been among the coins that have seen the sharpest declines. The coin reached a high of $0.2306 in June 2024, but has lost 96% of its value, falling to $0.0084 at the time of writing. Despite a slight rebound of 6% over the past 24 hours, this does not compensate for the losses of early investors who entered at high levels.
DADDY, associated with the controversial Andrew Tate, has fallen 88% from its high of $0.2886 to $0.032. The coin has generated huge profits for early investors, with unrealized profits at its peak of $45 million, reflecting the rapid bubble that accompanied its launch.
Along with the rest of the meme coins, TRUMP has fallen to $15.7, while MELANIA has seen a catastrophic drop from its high above $13 to below $2 currently. This huge drop reflects how these coins are tied to media momentum, as they rely on constant excitement and promotion to maintain their market value.
Celebrity-related meme coins rely mainly on media hype and heavy marketing, making them vulnerable to a sharp decline once the momentum fades. Investors initially rush to buy them due to the influence of celebrities and media coverage, but over time, the excitement dwindles and investors start selling to make profits, leading to a price collapse.
Meme coins, especially those associated with celebrities, are high-risk investments that rely mainly on media trends. As the hype wears off, their price plummets, making them unstable and unsustainable in the long run. So, investors should be careful not to get carried away by the media bubble without carefully studying the viability of these digital assets.