July 30, 2024
The Unpopular Truth About Celebrity Coins
Dear Subscriber,
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| By Bruce Ng |
Memecoins have taken the crypto world by storm.
In fact, they are the top-performing sector in crypto right now.
Since the beginning of the year, memecoins have returned 286%. That’s according to data by Cryptokoryo.
Memecoins are trailed by real-world assets (179%), liquid staking derivatives (90%) and identity (67%).
Bitcoin comes in fifth with its 58% gain so far in 2024.
As memecoins evolve, you can further subdivide them into different classes like:
- Politically-themed memecoins
We’ve looked closely at dog and cat (and frog!) memecoins in recent weeks together.
Today, we’ll explore the worlds of political and celebrity memecoins.
I’ll also share which segment looks more investable.
I think the answer may surprise you.
First up …
Political Memecoins
The whole world is watching the U.S. presidential election that’s coming up on Nov. 5.
Several meme creators have gotten ahead of the action. And crypto enthusiasts are already watching and investing in political memecoins like MAGA (TRUMP), Doland Tremp (TREMP), Jeo Boden (BODEN) and Kamala Horris (KAMA).
Beyond their creative spellings, political memecoins have some other key attributes in common.
- They parody a particular politician.
- They reflect the popularity of said politician.
- They are launched by a third party, rather than the politicians themselves.
- They usually have fair distribution. That is, the politicians themselves do not own any or a large portion of the coin supply.
Let’s look at some recent price performance of two of these coins.
MAGA (TRUMP)
MAGA spiked some 52% after the July 13 assassination attempt on the former president. And it rallied another 12% before this past weekend’s Bitcoin Conference, where he delivered remarks that were bullish for the crypto world.
Jeo Boden (BODEN)
BODEN dropped some 60% after the current president announced that he planned to exit the 2024 race. This sent HORRIS to an all-time high, though it has since dropped.
Celebrity Memecoins
Celebrities are also getting in on the memecoin trend.
For example, there’s singer Iggy Azalea’s Mother Iggy (MOTHER), Caitlin Jenner (JENNER) and Woman Yelling At Cat (WYAC), for starters. Yes, that cat.
The “Real Housewives” moment that became a memecoin that’s worth $0.004335 today.
Source: Know Your Meme.
Click here to see full-sized image.
Celebrity memecoins generally share the following attributes:
- They are often launched by the celebrity themselves. This is a key differentiator compared to political memecoins.
- They are associated with and/or track the popularity of said celebrity.
- They usually do not have a fair distribution and the celebs themselves own a large portion of the coin supply.
Let’s take a closer look at MOTHER and JENNER’s recent performances.
Mother Iggy (MOTHER)
Note that the two political memecoins we showcased above had an initial run-up into dollars, while these celebrity ones haven’t surpassed more than a few cents.
Caitlyn Jenner (JENNER)
There’s some buzz around social media that Iggy Azalea has done a good job of creating a community and helping the price of MOTHER to rebound. Meanwhile JENNER has yet to show the same running prowess as its namesake.
Political or Celebrity Coins:
Which Are Better Buys?
It’s clear that there’s money to be made in both.
And it’s also clear that some take off while others tank. And that momentum can shift at a moment’s notice.
You know that political memecoins are typically launched by third parties. So, while they are not without risk, they do have the benefit of giving us a read on sentiment because they are owned by a broader community rather than by politicians.
Celebrity memecoins have enjoyed far less momentum. So, before you buy one, here are some questions to ask yourself:
- Why does a celebrity, supposedly financially well-off, need to launch a memecoin?
- Do they hold a large amount of supply and why? What are their motives?
- Why are the price performances of most celeb memecoins so bad? They never seem to have an initial run-up like most political coins.
- Are they actively promoting said coin? Or is it just a blatant money grab and they can dump them on a whim?
That said, celebrity memecoins have the potential to become something more beneficial to the community.
MOTHER is a good example. Amid a public battle with crypto promoter Sahil Arora, who launched a token called IGGY, she’s helped to move MOTHER’s market cap above $28 million.
If you’re interested in getting on the pop culture bandwagon, I suggest sticking with dogs, cats, frogs and maybe even a Smoking Chicken Fish (SCF), if you’re so inclined!
Best,
Dr. Bruce Ng
P.S. The next hot AI investments are not stocks at all. Nearly 9 in 10 Americans are ignoring this investment class. But not Weiss Crypto Daily readers. And that’s why I think you’ll want to hear about The #1 Cryptos for AI, and why the time to get in on them is right now.
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