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Rappers Aim to Profit from the Meme Coin Craze

The world of cryptocurrency has seen a recent influx of high-profile rappers, shifting their focus from NFTs to meme coins. However, the actual value and sustainability of these meme coins remain uncertain.

Meme coins are a type of cryptocurrency typically featuring popular characters, individuals, animals, or artwork that traders exchange for fun and entertainment. Despite their playful nature, meme coins are often criticized for having minimal real-world value and are considered highly risky for investment purposes.

A prominent example of a meme coin gone wrong is Dogecoin, which led to a $258 million lawsuit against Elon Musk on allegations of racketeering and operating a pyramid scheme.

Nevertheless, earlier this year, various celebrities, including notable rappers, flocked to meme coins. This trend saw its appeal fade as scams and social media hacks became more prevalent. A notable incident involved 50 Cent, whose social media account was hacked in June by a scammer who claimed the rapper had created a meme coin. The hacker managed to steal $3 million in just half an hour before Fif’s team regained control of the accounts.

Despite the extensive fraud associated with meme coins, rappers continue to dive into the craze, albeit with mixed results. Recently, Waka Flocka Flame found himself in a difficult situation after launching his FLOCKA meme coin on June 17. He faced accusations of insider trading when a crypto wallet obtained about 40% of the coin’s supply and distributed it to multiple wallets right after the launch. In an interview with Decrypt, Waka explained that he lost control of the situation.

“I’m gonna be honest,” he said. “F**k it. What happened was we first lost the coin. People sniped 60% of the coin, like 70%. So I was like, hold the f**k up. No, no, no, shut that coin down, really, because I don’t even have any of it. And this is my coin. Hello? That’s my narrative. That’s not cool.”

As of early July, the coin was up 8%, but it has since plummeted 53% from its mid-June peak of $2 million. It is now valued at around $174,000 and continues to decrease rapidly. Similarly, Sexyy Red’s PRESI coin, announced on July 1, saw her team buy over 90% of the coin, or “sniped” in crypto jargon. The coin’s value initially surged from 0.000045 SOL (approx. $0.0067) to 0.01 SOL ($1.48) within 75 minutes of launch. However, the coin’s value quickly nosedived by over 50%, falling to 0.0042 SOL ($0.62) per coin. Lil Pump also faced allegations of organizing a pump-and-dump scheme with his LilPump meme coin, which started trading on June 13.

Interestingly, rap fans are investing in these coins even if their favorite rappers aren’t endorsing them. For example, the meme coin Eminem’s Spaghetti (EMINSPAG) saw an extraordinary rise in value when it was announced in June, despite Eminem never associating himself with it. The coin surged 14,000%, peaking at a valuation exceeding $6,000.

While meme coins are riddled with issues, some rappers have benefited from this crypto wave. Australian rapper Iggy Azalea saw her MOTHER meme coin skyrocket in value after she announced it in June. Reports suggest she cashed out after making $194 million within a week.

On the flip side, the meme coin venture isn’t proving lucrative for everybody. For instance, Lil Reese’s MONEY meme coin, announced earlier this month, reportedly peaked at just $35.

It’s highly likely that this meme coin craze will fade away similarly to the earlier NFT trend. However, the pressing concern remains: how many people will suffer financial losses before this trend burns out?

Source: Various Sources