- Many celebrity-endorsed crypto tokens have dropped over 70% showing weak demand.
- Some tokens like JAILSTOOL crashed nearly 90% leaving buyers with heavy losses.
- The hype behind celebrity coins fades fast while real projects hold long-term value.
The instability of celebrity-backed cryptocurrencies has again come to light, with data from Messari confirming a 78% average decline from all-time highs (ATH) across tokens. As of February 10, 2025, assets including MOTHER, DADDY, TRUMP, MELANIA, and JAILSTOOL have followed a textbook trajectory of hype-fueled rallies, only to crumble under market pressures.
Source: X
Analyst Miles Deutscher, a recognized figure in the crypto space, underscored the severity of the downturn, stating, “Celebrity coins are down -78% from ATH on average.” This figure exposes the fleeting nature of influencer-backed digital assets and signals an investor’s caution against hype-driven movements.
A Closer Look at the Collapse: Numbers Speak Volumes
Examining individual tokens reveals a trend of depreciation. MOTHER and DADDY, the relatively stronger performers, still trade at losses exceeding 70% from their peaks, with multiple volatility-driven spikes failing to establish recoveries. Meanwhile, the TRUMP token has oscillated before succumbing to market conditions, reflecting a 75% decline.
The most dramatic collapses, however, have been seen in MELANIA and JAILSTOOL. The latter suffered an alarming 90% drop in early 2025, cementing its place among the worst-performing celebrity-linked assets.
The trajectory of these tokens follows a pattern that began in mid-2024 when interest in celebrity-endorsed assets peaked. A temporary resurgence in August 2024 saw some tokens recover, but the trend remained bearish. By November and December 2024, sell-offs erased liquidity, leaving retail investors trapped in positions with minimal exit opportunities.
Related: https://cryptotale.org/celebrity-inspired-meme-coins-create-new-trend-in-market/
Hype vs. Reality: Historical Patterns Repeat
This wave of celebrity coin collapses is not an isolated phenomenon but a continuation of past patterns seen in other failed projects. The EthereumMax scandal, promoted by Kim Kardashian, resulted in an SEC fine, setting a precedent for undisclosed crypto promotions. Similarly, Logan Paul’s CryptoZoo, once hyped as a play-to-earn NFT project, never reached its potential, leaving investors with losses. The collapse of FTX, one of the largest crypto exchanges, further implicated celebrities like Tom Brady, whose endorsements became a focal point in investor lawsuits.
While celebrity endorsements have expanded crypto’s appeal, their track record in project viability remains bleak. Figures like Cristiano Ronaldo and Lionel Messi have leveraged their global influence to push digital collectibles and fan tokens—such as Messi’s partnership with Socios, which enabled engagement opportunities, and Ronaldo’s NFT collection with Binance, which brought attention to the NFT space. However, these cases remain exceptions in an industry where most celebrity-backed projects lack utility.
Binance CEO CZ recently questioned the nature of memecoin creation, highlighting how easily tokens can emerge based on hype alone. His humorous take on sharing his dog’s name and picture mirrors the trend in celebrity-endorsed cryptocurrencies, where speculation often outweighs actual value. The primary endorsed token saw declines, and memecoins tied to influential figures risk similar unsustainable rallies. CZ’s post indirectly confirms the dangers of hype-driven tokens, where official backing is often unclear, and investors are left chasing speculation rather than fundamentals—echoing the cautionary tale of past celebrity-backed crypto collapses.
Regulatory Crackdowns and Market Consequences
The fallout from these collapses has prompted regulatory scrutiny, particularly surrounding promotions and endorsements. Floyd Mayweather and DJ Khaled were previously fined for promoting unregistered ICOs, a warning that did little to deter further celebrity-driven speculation.
The data from Messari serves as a cautionary tale—hype may elevate prices, but sustainability dictates longevity. Investors must approach celebrity-linked assets with extreme skepticism, focusing instead on projects with real utility, transparent leadership, and long-term potential. Crypto’s success is not determined by endorsements but by the ability to deliver lasting value.
