In the latest frenzy gripping the cryptocurrency market, a surge of tokens introduced on Pump Fun by prominent local and celebrity figures has ignited a fiery debate within the crypto community over their significance and impact.
American media icon Caitlyn Jenner, alongside renowned rappers Iggy Azalea, Trippie Redd, and Nigerian sensation Davido, have all unveiled their own tokens within the past week. Harnessing the power of Pump Fun, a popular application on the Solana network, these celebrities have leveraged the ease of launching meme coins tied to their persona or image.
However, the distribution of profits has sparked contention. Blockchain analysis reveals that early cohorts of traders swiftly amassed the lion’s share of token supplies before the celebrities endorsed them on their platforms. This resulted in substantial windfalls for these early investors, some reportedly raking in six-figure sums.
For example, on the Solana blockchain, data exposes that a single wallet acquired over 70% of Trippie Redd’s BANDO token shortly after its launch early Thursday. These tokens were subsequently dispersed to 190 other wallets, as outlined by blockchain analyst ZachXBT.
Davido’s token, dubbed DAVIDO, also saw early buyers netting significant profits. Lookonchain, an on-chain analysis firm, reports nearly $470,000 worth of Solana’s SOL tokens earned within just 11 hours from an initial investment of slightly over $1,000. The analysis was conducted by monitoring the token deployer, tracking post-issuance acquisitions, and subsequent sales.
Highlighting Davido’s involvement in prior ventures flagged as scams, including RapDoge, Echoke, and Racksterli, ZachXBT expressed skepticism about the celebrities’ intentions, suggesting their primary motive appears to be profit extraction with minimal effort. He emphasized the negative repercussions of sudden meme coin promotions on the crypto space and cast doubt on the sincerity of the celebrities’ involvement.
As of Friday morning, requests for clarification regarding these allegations from Davido’s X profile remained unanswered.
In another instance, Iggy Azalea’s MOTHER token reportedly yielded early traders $2 million in profits, according to data tracking firm Bubblemaps. However, Bubblemaps noted that a handful of wallets had acquired 20% of the token supply within hours of issuance, well before Azalea mentioned the token on her platform. Despite the initial surge, the token’s value has since plummeted by 70% since Wednesday, indicating the volatility of these celebrity-backed ventures.