In recent months, we’ve seen politicians, musicians, athletes, and influencers launching their own “meme” tokens. The narrative is always the same: hype, community, and promises of a revolution. But the reality behind these projects is far less glamorous.
Most of these memecoins don’t last more than a few weeks before collapsing, leaving thousands of small investors trapped with heavy losses. Why does this keep happening?
1. Hype goes up, utility doesn’t exist
Celebrity-backed memecoins pump because of FOMO and speculation, but they almost never have real utility. No product, no adoption, no roadmap. The price depends only on the star power of the promoter —and that bubble bursts quickly.
2. The pump-and-dump pattern
The script is predictable: the token launches, insiders and whales accumulate, retail investors jump in late, the price spikes… and then comes the massive sell-off.
Result: those at the top walk away with profits, while most lose.
3. Lack of transparency and manipulation
In many cases, celebrities aren’t even running their own projects. Agencies or shady promoters handle the campaigns, manipulate liquidity, and then vanish. The average investor is left holding worthless tokens.
4. The inevitable collapse
Statistically, over 90% of memecoins lose between 70% and 95% of their value shortly after launch. It’s a rollercoaster that almost always ends badly for late entrants.
5. How to protect yourself as an investor
- Don’t invest for hype: if the only value is a celebrity’s face, stay cautious.
- Look for real utility: does the token solve anything beyond being a meme?
- Diversify: never put all your money into one speculative experiment.
- Study the tokenomics: who controls the supply, and how is it distributed?
Celebrity memecoins are designed to benefit the few at the expense of the many. They’re entertaining, they generate buzz, but they rarely generate wealth for retail investors.
The message is simple: more caution, more research, and less FOMO. Otherwise, the next one caught in the crash could be you.
News Highlights
- SEC unveils crypto policy overhaul
The U.S. SEC proposed new rules to ease compliance and bring crypto closer to mainstream finance with simplified disclosures and safe-harbor exemptions. - Bitcoin hits one-week high
BTC surged to around $112K, boosted by trading volume. Analysts point to upcoming U.S. jobs data as the next key catalyst for momentum. - Trump-backed miner lists on Nasdaq
American Bitcoin, backed by Eric and Donald Trump Jr., debuted at a $7.5B valuation before its stock dropped sharply from $13 to $6.70. - SEC & CFTC join forces
The two top U.S. regulators launched a joint initiative to oversee leveraged and margined crypto products, aiming for more clarity. - Ethereum’s Fusaka upgrade looms
ETH developers prepare a scalability upgrade expected to reduce gas fees and improve efficiency across DeFi. - Stablecoin regulation advances
The GENIUS Act moves forward, requiring stablecoins to maintain 1:1 backing with low-risk assets and regular audits. - Massive token unlock wave
Over $4.5B in locked tokens are set to hit the market this month, with Sui leading at more than $150M scheduled for release. - Layer Brett gains traction
The memecoin $LBRETT, built on Ethereum Layer 2, is in presale and draws attention for offering staking, governance, and transparency. - Little Pepe presale success
$LILPEPE raised over $750K in its presale, reaching stage 12 at $0.0021 per token, with CertiK audit approval boosting investor trust. - Bonk & Floki stay hot
Bonk (on Solana) soared 112% in a week, while Floki maintained strong growth, fueled by ongoing social media hype.
