Memecoins
Will Celebrity Memecoins DADDY, MOTHER Come Under Fire From SEC?
- The rise of celebrity memecoins is raising legal concerns over securities law violations and SEC crackdowns.
- Despite the scrutiny, memecoins like MOTHER and DADDY display significant price resilience and popularity.
The rise of celebrity memecoins has gained popularity, especially on the Solana [SOL] blockchain.
Celebrity Memecoins Under the Radar?
However, the surge has sparked speculation among legal experts who believe that celebrities recently involved in creating and promoting these memecoins on Solana may be violating securities laws.
Lawyers have predicted that these celebrity-endorsed memecoins will undoubtedly attract the attention of the U.S. securities regulator.
Regarding this, Creo Legal founding director David Chung told a publication:
“Nothing prompts the SEC to act faster than selling a memecoin.”
Let’s talk about Caitlyn Jenner JENNER token, he said,
“The SEC could potentially sue her. [Caitlyn Jenner] for selling unregistered securities without a proper license.
The SEC has already targeted several major players in the crypto space, including Consensys, Coinbase, and Ripple, so the concerns raised by lawyers about celebrity cryptocurrencies may make sense.
Celebrity Memecoin Market Trends
Considering some of these celebrity memecoins, like Iggy Azalea’s Mother Iggy [MOTHER] and Andrew Tate’s Papa Tate [DADDY]their current prices have increased by 636.91% and 115.09% respectively from their historic lows.
Likewise, Caitlyn Jenner JENNER also saw a 210.78% increase from its all-time low price.
However, at the time of writing, all three memecoins were displaying red candlesticks on their daily charts.
According to CoinGecko, MOTHER was down 4.1%, DADDY was down 13.7%, and JENNER led the decline with a 17.4% drop.
Many might speculate that this drop was due to the predictions made by the lawyers. However, this is not the case, as their weekly charts were also in red and this is not the first time that celebrity memecoins have been criticized.
Buterin joins the fray!
Previously, in June, Ethereum [ETH] co-founder Vitalik Buterin He also expressed his displeasure with the rise of celebrity-inspired memecoins, highlighting in particular the rise of MOTHER. He noted:
“I’m pretty unhappy with this cycle of celebrity experimentation so far. Financialization as a means to an end, I can respect that if the end is worth it (healthcare, open source software, art, etc.).”
He even went further and suggested strategies for improving celebrity memecoins, and noted,
Source: Vitalik Buterin/X
During this period, Mother Iggy’s price increased by 1,200% to around $0.20, reaching a market capitalization exceeding $190 million.
This indicates that these celebrity tokens are largely unaffected by the criticism and continue to follow their current patterns.
The market capitalization of memecoin Solana remained unchanged despite the developments at $6.51 billion, after jumping 12% in the last 24 hours according to CoinGecko.