5 Most Famous Celebrity-Endorsed Crypto Scams

Whereas celebrities can elevate a challenge’s profile, their involvement doesn’t make the challenge reliable. In actual fact, celebrity-backed initiatives fared terribly in earlier cryptocurrency cycles. Nonetheless, inexperienced buyers have continued to imagine in these initiatives regardless of repeated failures.

Even with no sensible use case, platforms like Pump.fun make it straightforward to introduce memecoins. That has led to a slew of extremely publicized failures and alleged scams. Listed here are 5 notable examples of when tokens backed by celebrities went awry.

1. Haliey Welch’s Hawk Tuah Token

Haliey Welch turned well-known for a viral remark throughout an interview. Driving her newfound fame, she launched a memecoin referred to as Hawk Tuah (HAWK). Regardless of lighthearted endorsements, together with one from Mark Cuban, the token’s launch on December 4 turned disastrous.

• Launch Failure: HAWK misplaced 91% of its worth inside three hours.
• Allegations: Accusations of insider buying and selling and sniping surfaced.
• Response: Crypto investigator “Coffeezilla” criticized the launch however denied it was a rug pull.
• Present Standing: No investigation has been introduced, however Welch’s repute has taken successful.

2. Andrew Tate’s DADDY Token

Andrew Tate, a controversial influencer, launched Daddy Tate (DADDY), claiming it symbolized male empowerment. Regardless of preliminary hype, the token fell sufferer to pump-and-dump schemes.

• Insider Buying and selling: Onchain analytics revealed insiders held 30% of the token’s provide, price $45 million.
• Unfair Practices: Massive purchases had been made earlier than public promotion, elevating considerations about integrity.
• Present Standing: Though Tate didn’t promote his tokens, the challenge misplaced credibility.

3. Jack Doherty’s McLaren Token

Streamer Jack Doherty used his controversial fame to launch McLaren (MCLAREN). Identified for reckless stunts, Doherty’s token rapidly became a scandal.

• The Rug Pull: Doherty allegedly purchased tokens with a number of wallets, hyped them on livestreams, then bought off his holdings, crashing the worth.
• Public Outrage: Social media backlash was speedy, however no authorized motion has been taken.
• Consequence: Doherty deleted promotional content material, leaving buyers with losses.

4. Sean Kingston’s KING Token

Sean Kingston, well-known for his music, entered the crypto space with the launch of King (KING). Regardless of an preliminary market cap of $4 million, the token crashed inside minutes.

• Authorized Troubles: Kingston confronted fraud expenses unrelated to the token, involving over $500,000 in stolen items.
• Present Standing: KING’s collapse added to his current authorized points, additional damaging his repute.

5. Davido’s Memecoin Flop

Afrobeat star Davido launched a Solana-based memecoin named Davido (DAVIDO). The token crashed shortly after its launch.

• Token Flip: Davido spent 7 SOL to purchase 20.3% of the availability and later bought for $500,000, leaving the coin nugatory.
• Public Warning: Nigeria’s SEC issued a warning about memecoin dangers.
• Impression: Whereas no authorized motion has been taken, the incident harmed Davido’s picture.

Classes from Celeb-Endorsed Crypto Scams

Celeb involvement in crypto can lure inexperienced buyers, however it hardly ever ensures success. Beneath are some key takeaways:

Celebrity-endorsed crypto initiatives proceed to draw consideration however stay fraught with dangers. Skilled buyers typically view these tokens as crimson flags, not alternatives.