Originally published on: October 20, 2024
Controversial social media personality, Andrew Tate, endorsed a variety of memecoins that have since crashed to near-zero values, sparking concerns about potential insider trading.
Tate threw his support behind over 10 meme tokens based on the Solana blockchain on June 7, despite their lack of intrinsic value. However, a recent report by Bubblemaps on October 19 revealed that most of these tokens have lost approximately 99% of their worth following Tate’s endorsement.
While memecoins are notorious for their extreme volatility and lack of utility, some traders have managed to capitalize on their fluctuations. In a stunning example, a crypto trader pocketed over $9 million in profits in just three days by making a 3,000-fold return on an investment in the Solana-based Nomogram (GNON) token.
The Roost (ROOST) token was one of the memecoins promoted by Tate through social media posts and videos showcasing related merchandise. However, the value of ROOST plummeted shortly after Tate’s endorsement, as highlighted in a video investigation by Coffeezilla on October 19.
In response to the backlash, Tate made a controversial social media post suggesting his ability to influence cryptocurrency prices single-handedly. The market performance of other memecoins endorsed by Tate, such as Fuck Tristan (FTRISTAN), TopG (TOPG), RNT (RNT), and Daddy Tate (DADDY), also saw a nosedive in their value.
The trend of celebrities launching cryptocurrencies that crash shortly after launch has eroded public trust in the crypto space. Over 30 celebrity-endorsed tokens on Solana launched in June have seen their prices plummet by over 73.23%, as analyzed by cryptocurrency analyst Slorg.
The downfall of these celeb coins underscores the risks associated with celebrity-backed projects in the crypto market. Insider allegations against tokens like Khamzat Chimaev’s Smash (SMASH) further highlight the need for transparency and accountability in the industry.
With the prevalence of meme tokens facing massive price drops, it is essential for investors to conduct thorough research and consider the risks before diving into volatile markets. Andrew Tate’s endorsement of memecoins serves as a cautionary tale of the pitfalls of celebrity-backed cryptocurrencies.