Ethereum co-founder Vitalik Buterin has voiced worries about the spread of memecoins supported by celebrities, therefore criticising the most recent development in the field of cryptocurrencies.
His comments coincide with a period when several well-known, influencer-backed token initiatives have left investors cautious and the market in turmoil, therefore affecting the crypto sector.
Ethereum Cofounder Not Happy With Transient Crypto Trends
Buterin stressed that these initiatives fell short of the full promise of blockchain technology, lacking substance and direction.
He brought up earlier projects like Mila Kunis and Ashton Kutcher’s “Stoner Cats” as illustrations of more noble undertakings, emphasizing that these collections had a creative and humanitarian bent.
He said, however, that the celebrity-backed companies of late had a tendency to climb swiftly and then disappear, leaving a trail of disappointed investors in their wake.
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). Financialization *as the final product*, 🤮
Ashton and Mila’s…
— vitalik.eth (@VitalikButerin) June 5, 2024
Celebrity-Backed Crypto Ventures
TV personality Caitlyn Jenner and artist Iggy Azalea are the most recent stars under close inspection. Jenner’s token, JENNER, started on May 28 and plunged into anarchy fast. Investors were first dubious, apprehensive of a possible social media hack on Jenner.
Jenner reassured her fans, nonetheless, of the token’s validity. Within a day, the value of the token dropped by more than 65%, causing indignation and claims of a rug pull—a situation whereby developers vanish with investor money leaving their tokens useless.
The MOTHER token was made public by Iggy Azalea following extensive marketing to her 7.6 million followers. Industry experts are already questioning its long-term viability, despite the fact that it hasn’t yet encountered a significant crisis.
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Growing Concerns Over Shady Tokens
Adding to the streak is the “FLOYD” token. After hyping it on social media, boxing world champion Floyd Mayweather abruptly deleted his promotional posts, sparking fears of another potential rug pull.
The Ethereum cofounder’s criticism is in line with the growing skepticism over the security of these ventures supported by celebrities. In his description of the qualities of reputable cryptocurrency initiatives, he emphasized the significance of promoting the common good, pursuing ethical objectives, and ensuring longevity.
Featured image from Chainalysis, chart from TradingView