Experts believe that when celebrities endorse crypto projects, it’s often for quick profit rather than genuine investment potential.
American media personality and former Olympic gold medal-winning decathlete has reportedly made a substantial profit of $405,000 by launching 12 meme coins.
According to data from Lookonchain, Jenner launched 12 meme coins on the Solana blockchain in four days, earning 2,381 SOL in profits, equivalent to $405,000.
Jenner’s Meme Coins Profit
The data also revealed that Jenner’s strategy included buying and quickly selling them off to make substantial profits. For example, she purchased 44.56 million JENNER tokens for 1.3 SOL and sold them for 253 SOL, yielding a profit of 252 SOL, which is equivalent to $43,000.
Lookonchain investigators traced transactions to reveal a network of new addresses, all channeling profits to one Binance deposit address, which clearly indicates Jenner’s role.
Initially, there was doubt about Jenner’s social media posts promoting the token. Some concerns lingered until the former media personality confirmed her backing and support, disregarding fears of a potential hack.
As the meme coin frenzy takes hold in the industry amid a broader price recovery, experts caution about the risks associated with celebrity-endorsed tokens. These tokens often interest unsuspecting traders, only to drain their finances.
Even experienced traders were not unaffected by Jenner’s coin’s appeal. For instance, a trader who previously made $3.7 million in profits within five days from another token suffered losses of 785 SOL, equivalent to $133,400, in one day.
CryptoQuant’s Ki Young Ju noted that these incidents undermine trust within the crypto community and lessen the genuine innovations of legalized projects.
Failed Celebrity Backed-Projects
A market participant known as ‘Cold Blooded Shiller’ noted that celebrity-backed projects have often failed historically. Many of these projects lose all their value within hours or days of their launch, and only a few manage to last beyond a few months.
The investor urged followers to see celebrity support of meme coins as opportunistic “cash grabs.” These endorsements are related to previous trends where merely mentioning “crypto” during past market cycles or “NFTs” more recently would attract attention.
He further explained that celebrities seize every opportunity to exploit surrounding hype, which triggers many similar actions. Eventually, this leads to more people rushing to invest in projects without fully understanding the associated risks.
