- After launching at a market cap of worth less than $50,000, the market cap jumped to $16.6 million.
- Allegations of insider trading appeared but 2.4 million MOTHER tokens have been burned.
It seems like it’s 2021 all over again as celebrities are now flocking to the crypto market. But this time, NFTs are not the major highlight. Instead, these famous people are launching tokens, specifically memecoins in their names.
The latest personality in this activity was Iggy Azalea who launched her token with the ticker “MOTHER.” Per DEXSceener, the MOTHER token jumped 230x a few hours after it launched.
Azalea follows in Jenner’s shoes
The token was the second celebrity-linked cryptocurrency on Solana [SOL] after Caitlyn Jenner’s first move. At press time, the market cap of the MOTHER crypto was $16.6 million.
The price, on the other hand, was $0.016, representing an 81.34% increase in the last 24 hours. However, AMBCrypto noticed one thing with both JENNER and MOTHER— They were both launched by the same “influencer marketing guy.”
According to our investigation, a certain Sahil Arora took credit for the deployment. And both Iggy Azalea and Caitlyn Jenner did not deny the claims.
However, there was one thing common to both memecoins, and that was controversy. For instance, when JENNER launched, the American media personality, accused Arora of trying to “scam” her, and the community.
It was also a similar situation for Australian rapper Azalea. However, it seemed that the strategy was planned so the token could get a lot of attention and people would buy into it.
Insiders may have put retail in trouble
Even though MOTHER token produced gains for many holders, there have been allegations of insider trading. Leading the allegations was Bubblemaps, a blockchain data visualizer.
For context, Insider activity happens when someone with non-public knowledge of a project uses the information to his advantage.
Most times, this happens at the expense of traders. According to Bubblemaps, insiders bought 20% of the MOTHER token at launch.
Source: X
In addition, the handle noted that those involved had already dumped $2 million of the token before Azalea announced it publicly.
Giving more information about the incident, Bubblemaps explained that,
“Wallet JEEt3D1, known as @invicibleon pump.fun, bought 109T MOTHER (10% of the supply) before splitting it into 7 wallets. Out of these, 89T tokens have already been sold.”
It also added that the wallet had realized $1.4 million in gains with another $400,000 in unrealized profits. At press time, Azalea had not responded to the claims.
Will burning tokens save MOTHER?
Instead, the official X handle of the MOTHER token shared that it was burning some of the supply. In crypto, burning tokens ensures that the cryptocurrency is scarce.
Therefore, this helps the value increase as demand rises. According to data from Solscan, 2.46 million MOTHER tokens have been burned.
If more of the supply gets burned, then the price might jump. Also, this could add to the predictions that the memecoin could hit $50 million in terms of market cap.
Despite the green candlesticks MOTHER might have produced, there is no certainty that the token would remain relevant in the long term.
In addition, there have been calls in some corners that celebrity involvement in launching tokens was a sign of the top of this cycle. At the same time, others argued that it was only a phase that would fizzle.
Irrespective of the side you stand, retail investors might need to be wary. Most of these tokens have no real utility or fundamentals.
There is also a chance that more tokens like MOTHER might spring up, and the liquidity from Iggy Azalea’s project might change sides. If this is the case, the price of the cryptocurrency might plummet.
Read Solana’s [SOL] Price Prediction 2024-2025
Going by the law of demand and supply, this could grind MOTHER’s price to a halt. Whether the token would prove otherwise, time will tell.
But as of now, more tokens deployed in the name of celebrities could be on the rise.
This news is republished from another source.
