June saw the launch of 30 celebrity memecoins on Solana, but most have failed to deliver returns, highlighting the volatility and risks in the memecoin market.
Points
- 30 celebrity memecoins launched on Solana in June.
- Most memecoins have failed to provide returns.
- High volatility and insider control impact memecoin performance.
- Importance of cautious investment in the memecoin market.
Celebrity memecoins on Solana have become a dime a dozen this cycle, but data shows investors hardly see returns. Memecoins, which blend popular culture with decentralized tokenomics, have attracted celebrities like Andrew Tate, Caitlyn Jenner, Davido, Iggy Azalea, Jason Derulo, and 50 Cent. However, public status has done little to ensure success in the web3 world.
According to Bubblemaps, data showed a network of insider wallets controlled huge supply portions of these memecoins. Insiders, ranging from celebrities themselves to team members and developers, held anywhere from 20% to 90% of the supply for tokens launched in June. These insiders likely sold at high prices, profiting the most from these celebrity launches.
The volatile nature of memecoins is further emphasized by their price fluctuations. The possibility of quadrupling the price within hours and falling below listing levels underscores the risk associated with these tokens.
解説
- Volatility: Rapid and unpredictable changes in price.
- Insider Wallets: Wallets controlled by individuals with prior knowledge of the token launch.
- Tokenomics: The study of the economics of a cryptocurrency token, including its distribution, supply, and demand.
Investing in celebrity memecoins requires caution due to their high volatility and the significant control insiders often have over the token supply. Despite the hype, the performance of these memecoins often falls short