- The surge in celebrity memecoins sparks legal concerns over securities law violations and SEC crackdown.
- Despite the scrutiny, memecoins like MOTHER and DADDY show significant price resilience and popularity.
The surge in celebrity memecoins has gained significant traction, particularly on the Solana [SOL] blockchain.
Celebrity-memecoins under the radar?
However, this rise has sparked speculation among legal experts who believe that celebrities recently involved in creating and promoting these memecoins on Solana might be violating securities laws.
Lawyers have predicted that these celebrity-endorsed memecoins will undoubtedly draw the attention of the United States securities regulator.
Remarking on the same, Creo Legal founding director David Chung told a publication,
“Nothing gets the SEC to act faster than shilling a memecoin.”
Talking about Caitlyn Jenner’s JENNER token, he said,
“The SEC could potentially go after her [Caitlyn Jenner] for selling unregistered securities without an appropriate license.”
The SEC has already targeted several major players in the crypto space, including Consensys, Coinbase, and Ripple. Therefore, the concerns raised by lawyers regarding celebrity coins may hold some ground.
Celebrity-memecoin market trends
Considering a few of these celebrity memecoins, such as Iggy Azalea’s Mother Iggy [MOTHER] and Andrew Tate’s Daddy Tate [DADDY], their current prices have surged by 636.91% and 115.09%, respectively, from their all-time lows.
Similarly, Caitlyn Jenner’s JENNER also saw a rise of 210.78% from its all-time low price.
However, at the time of writing, all three memecoins were showing red candlesticks on their daily charts.
As per CoinGecko, MOTHER was down by 4.1%, DADDY had fallen by 13.7%, and JENNER led the decline with a drop of 17.4%.
Many might speculate that this drop was due to the predictions made by lawyers. However, this isn’t the case, as their weekly charts were also bleeding in red and it’s not the first time celebrity memecoins have faced criticism.
Buterin joins the fray!
Previously, in the month of June, Ethereum [ETH] co-founder Vitalik Buterin also voiced his displeasure with the surge of celebrity-inspired memecoins, particularly highlighting the rise of MOTHER. He remarked,
“I’m feeling quite unhappy about with ‘this cycle’s celebrity experimentation’ so far. ‘Financialization as a means toward an end’, I can respect if the end is worthy (healthcare, open source software, art, etc).’
He even went ahead and suggested strategies for the enhancement of celebrity memecoins, and noted,
Source: Vitalik Buterin/X
During that time, Mother Iggy’s price surged by 1,200% to approximately $0.20, achieving a market capitalization exceeding $190 million.
This indicates that these celebrity tokens are largely unaffected by criticism and continue to follow their ongoing patterns.
Solana memecoin marketcap stood unaffected despite the developments at $6.51 billion, after a jump of 12% in the last 24 hours as per CoinGecko.