Meme Coins with no Future
Celebrity-Bonded Meme Coins Take a Sharp Drop: 78% Off Their Highs
Celebrity-bonded meme coins have seen a significant drop in value, falling an average of 78% from their all-time highs, according to data from Messari. These coins, which have gained widespread attention due to their high-profile endorsements, have seen sharp ups and downs in recent months, reflecting the volatile nature of the cryptocurrency market and the risks associated with investing in inherently unstable assets.
Notable Hit Coins: From Skyrocketing to Rapid Crash
MOTHER Coin: 96% Drop Despite Iggy Azalea’s Backing
MOTHER, which is backed by singer Iggy Azalea, was among the coins that suffered the biggest losses. The coin hit a high of $0.2306 in June 2024, but this bullish momentum was short-lived, as it tumbled 96% to $0.0084 at the time of publication. Despite a slight 6% recovery over the past 24 hours, the coin is still far from its peak, raising questions about its ability to recover in the near future.
DADDY Coin: 88% Collapse After Huge Gains for Early Buyers
DADDY, associated with controversial internet personality Andrew Tate, has also seen a sharp decline. The coin hit a high of $0.2886 before tumbling 88% to just $0.032. Part of the decline was due to heavy selling by early investors who made unrealized profits of $45 million when the coin peaked. This wave of profit-taking led to strong selling pressure, which pushed the price to very low levels.
Why did celebrity-linked meme coins decline?
Although these coins gained great popularity upon their launch due to their association with celebrities, their rapid collapse can be explained by several main factors:
Temporary hype and lack of real value: Most meme coins rely on media hype and the support of public figures, rather than any real practical benefit. Once the interest dies down, prices begin to decline sharply.
Whale movements and profit-taking: Whales (large investors) often enter these coins in their early stages, which quickly pushes prices to high levels. However, once this group makes huge profits, they start selling large quantities, which leads to a price collapse.
Cryptocurrency market volatility: The entire market is highly volatile, and with Bitcoin and Ethereum being unstable, smaller coins are more affected. Global monetary policies also play a role in determining market trends.
Lack of Sustainable Support: Even with their celebrity-related status, these coins do not have a sufficient level of sustainable development or real-world use cases to make them valuable in the long run, making them vulnerable to declines once the initial momentum wears off.
The Future of Meme Coins: Is There a Chance for a Recovery?
Despite the sharp declines, some investors still believe that these coins could see new upside waves, especially if celebrities continue to promote them or new waves of interest emerge in the cryptocurrency market. However, the reliance on speculation and hype makes investing in these coins very risky.
Ultimately, the market remains the judge, and it seems that celebrity-related meme coins are going through a real testing phase, where the mere endorsement of a well-known figure is no longer enough to drive prices higher. It is imperative that investors are aware of the risks associated with this type of asset before making any investment decisions.
