As cryptocurrencies continue to attract many of today’s biggest rappers, the conversation has now shifted from NFTs to memecoins. As big-name rappers start jumping on the new cryptocurrency wave, it’s unclear whether these coins hold any real value.
So what exactly are meme coins? Memecoins are typically used to refer to cryptocurrencies involving characters, individuals, animals, artwork, or any other replicable currency, and are enthusiastically traded among traders as part of a fun and relaxing experience. However, they are often considered to have little value and are considered a high-risk investment by cryptocurrency traders if one wants to make money from them.
The most famous example of a meme coin gone wrong is the infamous Dogecoin, which resulted in a $258 million lawsuit against Musk for alleged racketeering and pyramid schemes.
That didn’t stop an increasing number of celebrities from flocking to meme coins earlier this year, including a number of famous rappers. The initial novelty of meme coins has certainly worn off in recent months, especially as scams and social media hacks have increased. In June, 50 Cent’s social media accounts were hacked, with claims that the G-Unit leader created a meme coin. According to Fif, the scammer made off with $3 million in just half an hour before the rapper’s team gained access to the account.
Despite widespread fraud surrounding meme coins, rappers have continued to jump on the craze in recent weeks, with mixed results. Waka Flocka Flame is currently in trouble after launching the FLOCKA meme token on June 17. He had to deal with accusations of insider trading. In a follow-up interview with Decrypt, Waqa said he simply lost control of the situation.
“I’ll be honest,” he said, “fuck it. What happened is we lost the coins first. People sniped 60% of the coins, like 70%. So I was like, hang on. No, no, no , close that coin, because I don’t even have it. That’s my narrative.
The token gained 8% in the week of July 1 and is currently down 53% from its peak of $2 million in mid-June. It is currently worth approximately $174,000 and is still rapidly depreciating. sexyy Red faced a similar situation after announcing the launch of the PRESI token on July 1. Within the first 75 minutes of its release, the value of Meme coins surged from 0.000045 SOL (SOL) (approximately $0.0067) to 0.01 SOL ($1.48) per coin. The coin’s value almost immediately plummeted by more than 50%, to 0.0042 SOL ($0.62) per coin. Lil Pump also faces accusations of conducting a pump-and-dump scheme using his lilpump meme token, which began trading on June 13.
Rappers are also willing to invest in these coins, even if it is unclear whether the rapper is connected to the coins. A meme coin called Eminem’s Spaghetti (EMINSPAG) exploded in price when it was announced in June, although Em never claimed that the coin was endorsed or created by him. The coin’s price soared 14,000%, reaching a peak value of over $6,000.
While meme coins are undoubtedly fraught with problems, some rappers are already benefiting from the new crypto wave. After Australian rapper Iggy Azealia announced the launch of the MOTHER meme coin in June, its value soared. She cashed out after reportedly making $194 million in just one week.
Scams aside, the meme coin venture itself has proven unprofitable. Lil Reese announced the launch of a MONEY meme coin earlier this month, which was reportedly worth just $35 at its peak.
This meme craze will likely fade away like the NFT trend that came before it. The question with this trend is, how many people will be scammed before it ends?
