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June 25, 2024

Riding Solo or Falling Flat? Inside Jason Derulo’s Meme Coin Rollercoaster and the Celebrity Crypto Craze Sweeping Hollywood

In Brief

Jason Derulo announced the JASON coin’s debut on X, attracting 3.5 million fans and crypto holders with the help of Pump.fun, a website for meme coin creation.

Jason Derulo informed his 3.5 million fans on the social networking platform X (previously Twitter) about the debut of the JASON coin on June 24. The announcement, which was made with the help of Pump.fun, a website that facilitates the creation of meme coins, at first caused a lot of enthusiasm and buzz among Derulo’s followers and crypto holders.

But the bliss did not last long. The value of JASON crashed by almost 72% in the minutes following its introduction, leaving everyone deeply disappointed and furious. This quick drop in value is consistent with a common meme coin launch pattern, which features an early surge followed by a sharp decrease.

Jason Derulo announced the JASON coin's debut on X, attracting 3.5 million fans and crypto holders with the help of Pump.fun, a website for meme coin creation.

Photo: dexscreener

Derulo’s Response and the Sahil Arora Connection

Derulo addressed the incident on social media quite swiftly. He accused Sahil Arora, a person with a track record of cryptocurrency-related disputes, of deceiving him. Arora had “got” Derulo, he said, but he used this setback as inspiration to “take this all the way.”

To show his dedication to the initiative, Derulo revealed that he had bought $20,000 worth of JASON coins. He promised to use all of his resources to launch it, using trendy cryptocurrency jargon to engage his audience. Derulo even made a video apology, saying that his new life’s mission was to see the coin succeed.

Nevertheless, prominent members of the Bitcoin community viewed Derulo’s attempts to offer apologies as mistrustful. In response to Derulo’s post on X, prominent crypto celebrity SlumDOGE Millionaire questioned the authenticity of his activities and implied that Derulo was well aware of what was going on. ZachXBT, a well-known on-chain investigator who has a reputation for uncovering cryptocurrency frauds, weighed in on the criticism by bringing out Derulo’s past record of endorsing dubious crypto initiatives.

The Sahil Arora Factor

Sahil Arora’s involvement gives this narrative an additional level of intricacy. Arora’s name has come to be associated with scandal in the cryptocurrency sector, having been linked to many celebrity-backed meme currencies.

Arora was involved with a meme coin associated with Australian rapper Iggy Azalea before the JASON coin controversy. Over $300,000 was raised for this project via an Arora-organized presale. Later on, though, Azalea disassociated herself from the project, claiming that Arora had moved forward with the presale without getting her approval.

Arora’s actions point to a recurrent tactic of linking famous people to meme coins – often without their knowledge or approval. This calls into question the morality of these kinds of advertisements as well as the possible abuse of celebrity power in the cryptocurrency market.

Other Celebrity Meme Coins and Scams

The Jason Derulo incident is part of a wider trend in which celebrities are promoting cryptocurrencies and meme coins.

Other noteworthy instances include media star Caitlyn Jenner, who declared in the open that she owed Arora money following the creation of a coin connected to her. Rapper Lil Pump became involved in controversy as well as he launched a token and promptly took down the promotional tweet, alleging that his social media manager had taken a bad turn following an offer from Arora.

These cases show a tendency of celebrities being involved in potentially questionable cryptocurrency initiatives, sometimes having detrimental effects on their followers’ wallets as well as their reputations.

The Role of Social Media and Rapid Information Spread

Social media’s influence in the cryptocurrency space is demonstrated by how quickly these meme coin advertisements may become viral and acquire popularity. The history of the JASON currency was extraordinarily accelerated; in just a few hours, the token was produced, publicized, had a sharp increase in value, and then crashed.

Celebrities promoting cryptocurrencies come with a number of hazards. There’s a chance that fans will be taken advantage of since they will spend more because of their fandom than because the coin is a good investment.

The majority of celebrities may not be well-versed in finance or the things they are endorsing. The significant fluctuations in the value of these currencies raise questions about possible pump-and-dump operations and raise the possibility that they are being utilized for market manipulation.

Regulation-wise, celebrity endorsements might run into legal issues. Furthermore, the public perception of celebrities engaged in fraudulent or unsuccessful cryptocurrency initiatives might be seriously harmed.

The Current State of JASON and Other Celebrity Coins

According to the most recent data, there are about 3,190 holders of the JASON currency, and its liquidity is still dangerously low at about $211,000 per unit. Due to its low liquidity and small number of holders, the coin is quite vulnerable to volatility and price manipulation.

In the meanwhile, the success of other currencies linked to celebrities has varied. For example, Iggy Azalea’s MOTHER token witnessed substantial growth at first, but it’s still unclear if these kinds of ventures can be sustained over the long run.

Jason Derulo announced the JASON coin's debut on X, attracting 3.5 million fans and crypto holders with the help of Pump.fun, a website for meme coin creation.

Photo: dexscreener

It’s important to remember that there are larger issues facing the cryptocurrency market in addition to the celebrity meme coin scandals. Notable cryptocurrencies including Solana, Ethereum, and Bitcoin have all had drops recently. The collapsed Japanese Bitcoin exchange Mt. Gox made a ten-year pledge to repay creditors, which has further complicated the dynamics of the market.

Implications for Law and Regulation for the Celebrity Meme Coins

Regulators have taken notice of the growing number of celebrity-endorsed cryptocurrencies and the ensuing disputes. Celebrities have already been cautioned by the Securities and Exchange Commission (SEC) in the US that they must reveal any payments they get in exchange for promoting cryptocurrency.

These occurrences could result in more oversight and possibly new laws controlling celebrity endorsements in the cryptocurrency industry. Concerns about these promos being unregistered securities offers are becoming more prevalent, particularly if the celebrities receive payment for their endorsements.

The possible financial harm that these celebrity meme currency marketing might cause to followers and regular investors is perhaps the biggest effect. It’s possible that a large number of these people lack the financial literacy necessary to fully comprehend the hazards involved with these extremely risky transactions.

What Should We Expect from Celebrities in Crypto?

More openness is possible, and famous people could have to give more thorough disclosures about their participation in cryptocurrency ventures. It’s possible that celebrities will become more skeptical about supporting crypto initiatives and will investigate more thoroughly before endorsing them.

Additionally, regulatory crackdowns may occur, with authorities stepping up their efforts to combat dishonest or fraudulent celebrity-led cryptocurrency advertisements. Better financial literacy initiatives may also be promoted to educate the public on the dangers of investing in cryptocurrencies.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Viktoriia is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.

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Viktoriia Palchik
Viktoriia Palchik

Viktoriia is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.

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