As cryptocurrency continues to reel in lots of at the moment’s greatest rappers, the dialog has now shifted from NFT’s over to meme cash. As big-name rappers start to hop on the brand new crypto wave, it is unclear if these cash have any actual worth.
So what precisely is a meme coin? Typically used to discuss with cryptocurrencies involving characters, people, animals, art work or the rest that may be copied, meme cash are enthusiastically traded amongst merchants as a part of a enjoyable and light-hearted expertise. Nevertheless, they’re typically cited as having little to no worth and are regarded by crypto merchants as extremely dangerous investments if somebody needs to earn money off them.
The most well-liked instance of a meme coin gone flawed was the notorious Dogecoin which resulted in a $258 million lawsuit towards Elon Musk for allegations of racketeering and operating a pyramid scheme.
This did not cease a rising variety of celebrities from flocking to the meme coin earlier this yr, together with many notable rappers. The preliminary novelty of the meme coin has undoubtedly worn off in latest months, particularly amidst an increase in scams and social media hacks. 50 Cent had his social media account hacked in June by somebody claiming the G-Unit chief had created a meme coin. In response to Fif, the scammer made off with $3 million in simply half an hour earlier than the rapper’s group gained entry to the accounts.
Regardless of the in depth fraud that goes on with meme cash, rappers have continued to purchase in to the craze in latest weeks with combined outcomes. Waka Flocka Flame is presently in sizzling water after launching his FLOCKA meme coin on June 17. He has since needed to handle accusations of insider buying and selling after a crypto pockets acquired round 40% of the coin’s provide and distributed it to a number of wallets proper after the launch. In a follow-up interview with Decrypt, Waka mentioned as a substitute he merely misplaced management of the scenario.
“I am gonna be sincere,” he mentioned. “F**okay it. What occurred was we first misplaced the coin. Folks sniped 60% of the coin, like 70%. So I used to be like, maintain the f**okay up. No, no, no, shut that coin down, actually, as a result of I do not even have any of it. And that is my coin. Hiya? That is my narrative. That is not cool.”
The week of July 1, the coin was up 8% and is presently down 53% from a mid-June peak of $2 million. It’s now presently valued at round $174,000 and persevering with to lose worth quickly. Sexyy Crimson is dealing with the same scenario after asserting her PRESI coin on July 1. Her group reportedly purchased, or “sniped” because it’s referred to within the crypto neighborhood, over 90% of the coin. The meme coin skyrocketed in worth from 0.000045 SOL (SOL) (roughly $0.0067) to 0.01 SOL ($1.48) per coin within the first 75 minutes after launch. The worth of the coin plummeted nearly instantly by greater than 50%, falling to 0.0042 SOL ($0.62) per coin. Lil Pump additionally confronted allegations of operating a pump-and-dump scheme along with his lilpump meme coin, which started buying and selling on June 13.
Rap followers are additionally willingly investing in these cash even when it is unclear whether or not or not the rapper is connected to them. A meme coin known as Eminem’s Spaghetti (EMINSPAG) exploded in worth when it was introduced again in June, regardless of Em by no means claiming the coin was endorsed or created by him. The coin’s worth skyrocketed 14,000Â p.c, with the meme coin at its peak being valued at over $6,000.
Whereas meme coin is undoubtedly fraught with points, some rappers have benefitted from the brand new crypto wave. Iggy Azalea’s MOTHER meme coin skyrocketed in worth after the Australian rapper introduced it in June. She cashed out after reportedly making $194 million in only one week.
Fraud apart, the meme coin enterprise in and of itself is simply proving to not be profitable. Lil Reese introduced a MONEY meme coin earlier this month, and at its peak was reportedly solely price $35.
It is greater than probably this meme craze will burn out just like the NFT developments that got here earlier than it. The difficulty with this pattern is how many individuals will get ripped off earlier than it involves an finish?
