Vitalik Buterin, co-founder of Ethereum, has expressed his concerns about the proliferation of memecoins endorsed by celebrities, delivering sharp criticism of the latest trend in the cryptocurrency space.
His remarks come at a time when the crypto industry is grappling with the fallout from several high-profile, influencer-backed token projects that have left investors wary and the market in disarray.
Ethereum Cofounder Not Happy With Transient Crypto Trends
Buterin voiced his disapproval of the current trend of celebrities experimenting in the crypto space during a conference on Wednesday. He criticized these endeavors for frequently failing to meet the fundamental requirements of financialization and offering little more than transient financial gain.Buterin stressed that these initiatives fell short of the full promise of blockchain technology, lacking substance and direction.
He brought up earlier projects like Mila Kunis and Ashton Kutcher’s “Stoner Cats” as illustrations of more noble undertakings, emphasizing that these collections had a creative and humanitarian bent.
He said, however, that the celebrity-backed companies of late had a tendency to climb swiftly and then disappear, leaving a trail of disappointed investors in their wake.
I’m feeling quite unhappy about with “this cycle’s celebrity experimentation” so far.
“Financialization as a means toward an end”, I can respect if the end is worthy (healthcare, open source software, art, etc). Financialization *as the final product*,
Ashton and Mila’s…
— vitalik.eth (@VitalikButerin) June 5, 2024
Celebrity-Backed Crypto Ventures
The latest celebrities to draw scrutiny are TV personality Caitlyn Jenner and rapper Iggy Azalea. Jenner’s token, JENNER, launched on May 28, quickly descended into chaos. Initially, investors were skeptical, suspecting a potential hack on Jenner’s social media.
However, Jenner reassured her followers of the token’s legitimacy. Within a day, the token’s value plummeted by over 65%, sparking outrage and accusations of a rug pull—a scenario where developers vanish with investor funds, leaving their tokens valueless.
The MOTHER token was made public by Iggy Azalea following extensive marketing to her 7.6 million followers. Industry experts are already questioning its long-term viability, despite the fact that it hasn’t yet encountered a significant crisis.
Related Reading: Ethereum ETF Approval Timeline Uncertain, SEC Chair Warns
Growing Concerns Over Shady TokensAdding to the streak is the “FLOYD” token. After hyping it on social media, boxing world champion Floyd Mayweather abruptly deleted his promotional posts, sparking fears of another potential rug pull.
The Ethereum cofounder’s criticism is in line with the growing skepticism over the security of these ventures supported by celebrities. In his description of the qualities of reputable cryptocurrency initiatives, he emphasized the significance of promoting the common good, pursuing ethical objectives, and ensuring longevity.
Featured image from Chainalysis, chart from TradingView