The world of cryptocurrency is no stranger to fleeting trends. From the ICO craze of 2017 to the recent NFT bubble, digital assets have a history of attracting speculative investments with promises of quick riches.
Now, a new craze has emerged: celebrity-backed memecoins. In the span of less than 30 days, numerous high-profile figures, including US President Donald Trump, First Lady Melania Trump, Binance founder CZ, and the presidents of the African Republic and Argentina, have launched or promoted their own meme tokens. But are these coins truly the next big thing in crypto, or are they destined to go the way of other fleeting fads?
The Rise of Celebrity Memecoins
Celebrity memecoins are a unique breed of digital assets that leverage the fame and influence of well-known figures to attract investors. Unlike traditional cryptocurrencies with underlying technology or utility, these tokens rely heavily on social media hype, community engagement, and the “fear of missing out” (FOMO) to drive their value. This has led to wild price swings, with some tokens reaching market capitalizations in the hundreds of millions of dollars within days, only to crash shortly after1.
One notable example is the $HAWK meme coin launched by internet celebrity “Hawk Tuah Girl” Hailey Welch in December 2024. Initially intended as a fun, community-driven project, the coin’s market cap soared to nearly $500 million before plummeting by 88% within minutes. Accusations of a “rug pull” quickly followed, suggesting that developers abandoned the project after driving up the price, leaving investors with worthless tokens. This incident sparked outrage and calls for legal action against Ms. Welch. It also raised questions about the responsibility of celebrities in promoting such volatile and potentially risky assets.
CZ, the founder of Binance, also highlighted the speculative nature of celebrity memecoins when he jokingly promoted a token based on his dog’s name. This humorous take on the trend underscores how hype and speculation often outweigh actual value in the celebrity-driven memecoin market.
Parallels to the ICO Craze
The current fervor surrounding celebrity memecoins draws striking parallels to the ICO (Initial Coin Offering) craze of 2017. During this period, countless new crypto projects emerged, promising revolutionary technology and attracting massive investments. However, many of these projects lacked substance and ultimately failed, leaving investors with significant losses.
BitAML’s own Joseph Ciccolo, a compliance professional, offered his perspective on this trend: “Many of these could be considered securities. Is this the new ICO craze? Maybe we can draw some parallels to the ICO craze where everyone was just excited to put out some sort of coin and wanted to catch the fever. All of a sudden, they found themselves in a position where, based on their activities, they knowingly or unknowingly launched a security.” This take emphasizes the potential legal and regulatory implications of celebrity-backed tokens and the need for careful consideration before investing.
Research on celebrity-endorsed ICOs further supports the similarities between the two trends. Studies have shown that while celebrity endorsements can help ICOs raise more funds and increase their chances of being listed on an exchange, these benefits do not necessarily translate into long-term success. This suggests that the hype generated by celebrity endorsements may not be sustainable and that investors should be wary of projects that rely solely on fame to attract investment.
Both the ICO craze and the current celebrity coin trend involve individuals chasing quick profits with little regard for the long-term viability or underlying value of the assets. This speculative behavior can lead to market instability and significant losses for investors who are not aware of the risks involved.
Risks and Concerns
Investing in celebrity memecoins carries significant risks. These tokens are highly volatile and speculative, with prices often driven by social media hype rather than fundamentals. Data from Messari confirms that celebrity-endorsed crypto tokens have experienced an average decline of 78% from their all-time highs7. This volatility can lead to rapid price swings and substantial losses for investors.
Specific examples of poorly performing celebrity coins include MOTHER (down 87.3% from its peak), DADDY (down over 70%), and JAILSTOOL (which crashed nearly 90% in early 2025). These examples illustrate the potential for significant losses and the risks associated with investing in hype-driven assets.
Furthermore, there is a high risk of scams and rug pulls in the memecoin market. Many projects are launched with little transparency or accountability, making it difficult for investors to assess their legitimacy. Celebrities can easily generate buzz and attract inexperienced investors with a single tweet or statement, increasing the potential for manipulation and exploitation. This can result in investors being left with worthless tokens or losing their investments entirely.
It’s also important to recognize that meme coins are more akin to casino chips than regulated investments due to their lack of intrinsic value. They are primarily driven by speculation and social media trends, making them highly susceptible to market manipulation and pump-and-dump schemes.
Moreover, celebrity endorsements can also lead to misinformation and further market manipulation. When big names endorse coins without fully understanding the technology or risks involved, it can mislead investors and create a false sense of security. This can lead to impulsive buying decisions and significant losses, especially for those new to the crypto market.
The Tequila Boom – a Cautionary Tale
The rise and fall of celebrity-backed tequilas offer a cautionary tale for the memecoin market. In recent years, numerous celebrities have launched their own tequila brands, capitalizing on their fame and the growing popularity of the spirit. This trend mirrors the current surge in celebrity memecoins, where fame and social media hype are often used to promote speculative assets with questionable long-term value.
Just as celebrities often prioritize quick profits and aesthetics over quality and long-term value in the tequila industry a similar pattern can be observed in the memecoin market. Many celebrities may be more interested in capitalizing on the current hype and making a quick buck than in creating a sustainable and valuable project.
While some celebrity tequila brands have achieved success, many have struggled to maintain momentum, with some even slashing prices to stay competitive. This highlights the risks of relying solely on celebrity endorsements to drive sales. Consumers are becoming more discerning and are less likely to purchase a product simply because it is associated with a famous person. Instead, they are looking for quality, authenticity, and value for their money.
The tequila boom was driven by several factors, including the increasing demand for premium and artisanal tequila, the rising popularity of cocktails, and the globalization of tequila consumption. However, the market has also faced challenges, such as the limited supply of blue agave and economic factors that can impact demand.
Similarly, the celebrity memecoin market may experience a period of growth and hype, but its long-term sustainability will depend on factors such as the development of real-world utility, increased transparency, and the ability to overcome regulatory challenges.
A Tale of Two Presidents… Different Sides of the Same Coin?
In a world where digital assets and politics are becoming increasingly intertwined, two presidents—Donald Trump and Javier Milei—have found themselves at the center of the latest memecoin storm. While their approaches to cryptocurrency may appear vastly different at first glance, their respective involvement in memecoins reveals striking similarities that speak to the broader implications of political figures stepping into the volatile world of digital finance.
Trump’s $TRUMP – A Strategic Play or Just Another Meme?
Former U.S. President Donald Trump’s $TRUMP token, launched on the Solana blockchain, was introduced as a cultural and political statement wrapped in a memecoin. Marketed as a symbol of “winning” and community engagement, the token experienced a meteoric rise in value, fueled by Trump’s global brand and political clout. Despite early concerns over a potential pump-and-dump scheme, the structured release of reserved tokens and the endorsement by regulated exchanges lent $TRUMP an air of legitimacy that many other celebrity-backed memecoins lack.
The $TRUMP token, in many ways, represents a calculated move. Its structured lockup periods and staged releases suggest an effort to avoid the classic rug-pull scenario that plagues much of the memecoin space. The token’s launch also speaks to Trump’s broader media strategy—leveraging digital assets as both a political tool and a financial play. Unlike other memecoins that rely solely on social media hype, $TRUMP attempts to establish longevity through careful tokenomics.
But while the controlled rollout might provide some stability, the fundamental question remains: is a memecoin based on a political figure truly sustainable? Or is it just another speculative asset riding the wave of a personality cult?
Milei’s Libra Token – A Scandal Before the White House Visit
In contrast, Argentina’s President Javier Milei found himself in the middle of a memecoin debacle of a much different nature. Late one night, Milei directed his social media followers to a website promoting the Libra token, claiming it would help raise money for small businesses in Argentina. Within hours, the token’s value skyrocketed past $4 billion. But just as quickly as it rose, the token crashed, prompting accusations of the “biggest rug pull of all time.”
Unlike Trump’s structured and somewhat controlled approach, Milei’s association with Libra appeared more chaotic, if not reckless. The president’s connection to the token was murky at best—one moment he seemed to endorse it, and the next, his office denied any affiliation. The financial fallout was severe, not just for investors but also for Argentina’s broader economic landscape, as the S&P Merval Index took its biggest single-day hit in months.
The key difference between the two presidents’ memecoin engagements is intent—or at least, how their involvement is perceived. Trump’s team carefully structured $TRUMP to minimize immediate collapse, whereas Milei’s Libra token was an outright financial disaster that resulted in widespread public backlash. Yet, both cases highlight a common trend: political figures entering the crypto space are playing with fire, and the ramifications can extend far beyond the digital asset world.
Two Presidents, One Trend
Despite their differences, Trump and Milei’s forays into memecoins reveal an unsettling reality: political figures embracing speculative digital assets introduce a dangerous level of volatility into both financial and political markets. Their supporters and detractors alike engage with these tokens, not necessarily for their financial utility, but as ideological symbols. In this sense, memecoins become less about technology and more about political identity.
Moreover, these cases raise significant regulatory questions. Should political figures be allowed to launch or promote digital assets? If a memecoin tied to a political leader crashes, who is held accountable—the politician, the developers, or the market? As governments worldwide grapple with cryptocurrency regulations, these high-profile cases will likely shape future policy discussions.
Ultimately, Trump’s $TRUMP and Milei’s Libra token may be two sides of the same coin. Both illustrate how memecoins, despite their lighthearted branding, can become powerful economic and political tools—capable of shaping narratives, influencing elections, and, in some cases, bringing financial ruin to those who invest without caution.
Final Thoughts The Long-Term Risks of Political Memecoins
The idea of a memecoin tied to a political figure is a relatively new phenomenon, but it raises serious concerns. While Trump’s $TRUMP has avoided the immediate chaos of a rug pull, its long-term stability remains in question. Meanwhile, Milei’s Libra disaster serves as a cautionary tale for other political figures considering a similar move.
As memecoins continue to evolve, the intersection of politics and cryptocurrency will likely become even more pronounced. Whether this trend leads to greater adoption of digital assets or increased regulatory scrutiny remains to be seen. One thing, however, is clear: when political leaders enter the crypto space, the stakes are higher than ever.
The Importance of Due Diligence
While celebrity endorsements can generate excitement and attract attention, investors should approach memecoins with extreme caution. It is crucial to conduct thorough research and due diligence before investing in any digital asset, especially those associated with celebrities.
Investors should consider factors such as the project’s underlying technology, its utility, the team behind it, and its long-term sustainability. It is also essential to be aware of the risks involved and to only invest what you can afford to lose.
Celebrity memecoins may be the latest craze in the crypto world, but their long-term viability remains uncertain. While some tokens may achieve short-term success, many are likely to fade into obscurity, leaving investors with losses. The tequila boom serves as a reminder that celebrity endorsements alone are not enough to guarantee success. Investors must prioritize due diligence, research, and a critical assessment of the project’s fundamentals before jumping on the bandwagon.
Connect with Experts—Minimize Risk
Navigating the fast-changing landscape of cryptocurrency requires insight and strategic foresight—especially when politics enters the mix. If you want to understand how memecoins, regulations, and emerging trends could impact your investments or business, schedule a complimentary discovery call with BitAML today. Stay informed, stay prepared, and stay ahead of the curve.
