Pump and Dump? Celebrity Memecoins Get A Boost In Lil Pump’s Solana Stunt
The world of memecoins has entered a strange new chapter, fueled by the strange antics of celebrities and questionable financial business. The latest episode features rapper Lil Pump, whose recent social media activity has left the crypto community scratching their heads and wondering – is this marketing savvy or a recipe for financial disaster?
Memecoins: Pumping Up The Hype
Lil Pump, known for his platinum-selling “Gucci Gang,” unveiled a tattoo that proudly displays the word “Solana” alongside the blockchain platform’s logo. This was not just a random artistic choice. It coincided with a series of posts promoting his Solana-based memecoin, creatively named “lil pump.”
Taking things further, Pump called himself the “adopted child” of the self-proclaimed “memecoin” family, which name-dropping celebrities Iggy Azalea (“$MOTHER”) and Andrew Tate (“$DADDY”) also introduced. their Solana tokens. The rapper’s social media blitz included repeated questions to major exchanges like Coinbase and Binance, asking “wen” — crypto slang for “when” — will his token be listed.
I sold my Sol. where Binance?
ca: 9vrGUHwsC8LyLjQoh3zJb9S53x7A88u49La63qPB6F5t pic.twitter.com/fdCJHXLhsP
— Lil pump (@lilpump) June 13, 2024
Pump And Dump Fear The Hype Machine
While some fans were excited about Pump’s foray into crypto, experienced investors were wary. The history of celebrity-backed memecoins is littered with failures. Projects promoted by figures like Kim Kardashian, Floyd Mayweather, and even Snoop Dogg have left a trail of disappointed investors and empty pockets.
These transactions usually follow a common pattern: celebrities use their large following to issue a new token, causing its value to skyrocket. Then, just as quickly, they cash out, leaving investors holding the bag as the price drops.
Recent events have fueled these concerns. Caitlyn Jenner’s Solana-based token “JENNER” took off after its creator ditched the project, essentially stealing from investors. This episode serves as a powerful reminder of the inherent risks associated with memecoins, especially those fueled by celebrity endorsements.
Is Lil Pump different?
Lil Pump seems determined to prove that his project has staying power. Unlike some of his celebrities, he is actively trying to build a community around the “lil pump.” However, the tactics raise questions.
I’m not happy about the “celebrity experiment of this cycle” so far.
“Funding as a means to an end”, I would respect if the end is worth it (health care, open source software, art, etc). Making money *as a final product*, 🤮
Ashton and Mila…
— vitalik.eth (@VitalikButerin) June 5, 2024
The authenticity of his “Solana” tattoo is disputed, some think it is easily removed. Additionally, Ethereum founder Vitalik Buterin has publicly voiced disapproval of the memecoin trend, questioning its long-term viability.
Featured image from YouTube/Lil Pump, chart from TradingView
